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[johnlw]

Longford Energy arranges $3-million financing

2008-02-13 07:26 MT - News Release

Mr. Ahmed Said reports

LONGFORD ENERGY ANNOUNCES $3,000,000 PRIVATE PLACEMENT AND PROVIDES CORPORATE UPDATE

Longford Energy Inc. has arranged a $3-million private placement financing.

In connection with the private placement, Longford will sell up to 11,111,111 units at a price of 27 cents per unit for gross proceeds of $3-million. Each unit will consist of one common share in the capital of the company and one transferable common share purchase warrant. Each warrant shall entitle the holder thereof to acquire one common share in the capital of the company at a price of 35 cents for a period of 24 months following the closing date.

Closing of the financing is anticipated to occur on or about Feb. 20, 2008, and is subject to receipt of applicable regulatory approvals, including approval of the TSX Venture Exchange. The securities issuable in connection with the financing will be subject to resale restrictions for a period of four months plus one day from the closing date.

The net proceeds from the sale of the units will be used to repay outstanding debentures and for general corporate purposes.

Also, following the strategic review initiated in the fourth quarter of 2007, management has aggressively pursued and evaluated high-impact international exploration and production opportunities that could potentially offer significant upside and shareholder value.

One of the primary focus areas has recently been the Kurdistan region of Iraq under the authority of the Kurdistan regional government (KRG). Geologically, the area is a part of the Zagros fold and thrust belt, and is considered to be one of the most prospective, underexplored, hydrocarbon fairways in the world, with prolific oil and gas discoveries, including the Kirkuk field, with estimated discovered reserves of 25 billion barrels. To date, the company has not entered into any definitive agreements with the KRG or any independent third parties with regard to potential participation or acquisition of an interest in a concession.

We seek Safe Harbor.