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Pine Cliff Energy Ltd. Announces Rights Offering

Aug 20, 2007 - 11:59 PM ET

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE

UNITED STATES/

CALGARY, ALBERTA--(Marketwire - Aug. 20, 2007) - Pine Cliff Energy Ltd. ("Pine Cliff" or "the Company") (www.pinecliffenergy.com) (TSX Venture: PNE) is pleased to announce that it intends to proceed with a rights offering to shareholders of Pine Cliff, the material terms which are still to be finalized. Pine Cliff's shareholders would receive rights to subscribe for Common Shares, and would have an additional subscription privilege to subscribe for any Common Shares not taken up on the exercise of rights. In accordance with the policies of the TSX Venture Exchange (the "Exchange"), the rights will be listed for trading.

Pine Cliff anticipates it will use the net proceeds of the rights offering to fund Pine Cliff's exploration, development, acquisitions and farm-in commitments in South America and Canada and for general corporate purposes.

Pine Cliff also announces that it will no longer proceed with the private placement financing which was announced on July 4, 2007. The general downturn in the market has made this type of a transaction difficult at acceptable pricing.

The securities to be offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.


FOR FURTHER INFORMATION PLEASE CONTACT:

Pine Cliff Energy Ltd.
George F. Fink
President and CEO
(403) 269-2289
Fax: (403) 265-7488

OR

Pine Cliff Energy Ltd.
Randy M. Jarock
COO
(403) 269-2289
Fax: (403) 265-7488

OR

Pine Cliff Energy Ltd.
Kirsten Kulyk
Manager, Investor Relations
(403) 269-2289
Fax: (403) 265-7488
info@pinecliffenergy.com