Cirrus Energy Commences $45MM Bought Deal Financing

Cirrus Energy has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. and including FirstEnergy Capital Corp., BMO Capital Markets, Haywood Securities Inc., Macquarie Capital Markets Canada Ltd. and Raymond James Ltd. to issue on a "bought deal" basis 14,290,000 common shares at an issue price of $3.15 per Common Share for gross proceeds of approximately $45.0 million. As consideration for their services, the underwriters shall receive 5% of the gross proceeds of the offering.

Cirrus has also granted the underwriters an option (the "Over-Allotment Option") to purchase up to an additional 2,143,500 Common Shares to cover over-allotments, if any, for additional gross proceeds of approximately $6.75 million. The Over-Allotment Option is exercisable in whole or in part for a period of 10 days following closing of the Offering.

The Offering is scheduled to close on or about October 14, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. Proceeds of the Offering will be used to fund the Corporation's capital program, fund future acquisitions and for general working capital requirements. The Common Shares will be offered in certain provinces of Canada by way of a short form prospectus.