Mongolian Resource Play

[Ed Monton]

Storm Cat Energy Corporation Announces 'Agreement in
Principle' with Petroleum Authority of Mongolia

CALGARY, ALBERTA--(CCNMatthews - Oct. 28, 2004) - Storm Cat Energy
Corporation (the "Company") (TSX Venture: SME) announces it has agreed
in principle with the Petroleum Authority of Mongolia ("PAM") to
negotiate the terms of a formal Joint Exploration Agreement with respect
to the exploration by the Company on additional lands in Mongolia
covering various substantial coal deposits in which Storm Cat believes
may be appropriate for the extraction of Natural Gas from Coals. Thus
far, there is no binding commitment to either party. Any agreement
entered into by the Company will be subject to regulatory approvals.

By Order of the Board of Directors of Storm Cat Energy Corporation

Carmen Etchart, Corporate Secretary

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FOR FURTHER INFORMATION PLEASE CONTACT:
Storm Cat Energy Corporation
Investor Relations
[phone]
Email: [e-mail]
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