Blackbird Energy Inc. Announces Closing of Second Tranche of Private Placement Drilling License for Bigstone Well

Blackbird Energy Inc. Announces Closing of Second Tranche of Private Placement Drilling License for Bigstone Well

August 8, 2011

Blackbird Energy Inc. has closed the second and final tranche of its private placement previously announced on June 17, 2011. A total of 935,000 units, comprised of 425,000 flow-through units (each, a "FT Unit") and 510,000 units (each, a "Unit") at a price of $0.20 per Unit and $0.20 per FT Unit, were issued pursuant to this tranche for gross proceeds of $187,000. Each Unit consists of one common share in the capital of the Company (each a "Share") and one common share purchase warrant (each, a "Warrant") exercisable at a price of $0.35 per Share until August 4, 2013. Each FT Unit is comprised of one Share issued on a flow-through basis and one Warrant. Finders acting in connection with the second tranche of the Private Placement will receive finder's fees in the total amount of $12,560 and an aggregate of 62,800 finder's warrants, each finder's warrant entitling the holder thereof to purchase one Share until August 4, 2013. All of the Shares, Warrants and finder's warrants issued pursuant to the Private Placement are subject to a four-month hold period which expires on December 5, 2011. The proceeds from this tranche, along with the proceeds from the first tranche of the Private Placement, will be initially applied to the Company's project with Donnybrook Energy Inc. for the lease construction and drilling of the Montney Horizontal formation well at Bigstone. Closing of the second tranche is subject to final approval from the TSX Venture Exchange.

Insiders of the Company acquired a total of 100,000 FT Units in the second tranche of the Private Placement (the "Insider Participation").The Insider Participation is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 ("MI 61-101") by virtue of the exemptions contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 based on that the fair market value of such Insider Participation did not exceed 25% of the Company's market capitalization. Blackbird is also pleased to announce that it and its partners have received the licence at their Bigstone, Alberta lands, for the drilling of the Montney horizontal well with a horizontal length of approximately 1,400 metres. Well site construction has begun and the well is currently expected to spud early in the third quarter of 2011. The well is located within five miles of a recently announced liquids rich natural gas two mile horizontal Montney well that after clean-up reportedly flowed on test over the last day at an average rate of 13.1 MMCF of natural gas and 650 barrels of crude oil and NGLs per day (2,800 boe per day). Donnybrook and its partners hold 7 contiguous sections of Triassic Montney P&NG rights at Bigstone.

Blackbird also announces that it has granted an additional 350,000 incentive stock options, exercisable at the price of $0.20 until August 5, 2016, to its Chief Executive Officer, Garth Braun. Concurrently with such grant, the Company has cancelled a total of 300,000 incentive stock options previously granted to Mr. Dennis Paterson in connection with his appointment as a director earlier this year. Currently, an aggregate of 1,888,377 Shares remain available for grant under Blackbird's stock option plan.

We seek Safe Harbor.

(c) 2011 Canjex Publishing Ltd.

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