TMX group

CALGARY, Alberta and DENVER, Sept. 28 /CNW/ -- Storm Cat Energy
Corporation (Amex: SCU; TSX: SME) today announced that it has closed its
private placement previously announced on September 19, 2006.  The private
placement consisted of the sale to a single investment group based in Ontario,
Canada, acting as portfolio manager for fully-managed accounts, of 7,594,937
units (C$12,000,000.46) and 6,172,839 flow-through common shares
(C$11,111,110.20) (the "Offering").  Each unit, priced at C$1.58 per unit, is
comprised of one common share and approximately 0.28 of a common share
purchase warrant (2,126,582 warrants).  Each whole common share purchase
warrant is exercisable into one common share at a price of C$1.90 per share
for a period of 18 months from closing.  Each flow-through common share was
priced at C$1.80 per share.  In connection with the Offering, the Company has
paid a cash commission equal to 6% of the aggregate gross proceeds of the
Offering.
The securities distributed under the Offering are subject to a 4-month
hold period and may not be traded before January 28, 2007 unless permitted
under applicable securities legislation and the rules of the Toronto Stock
Exchange.
The securities issued under the Offering have not been registered under
the United States Securities Act of 1933 or any state securities laws, and
unless so registered may not be offered or sold in the United States, except
pursuant to an exemption from, or in a transaction subject to, the
registration requirements of the Securities Act of 1933 and applicable state
securities laws.  This press release is issued pursuant to Rule 135(c) of the
Securities Act of 1933, and does not constitute an offer to sell, or the
solicitation of an offer to buy, nor shall there be any sale of the common
shares or warrants in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.

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About Storm Cat Energy
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Storm Cat Energy is an independent oil and gas company focused on the
pursuit, exploration and development of large unconventional gas reserves from
fractured shales, coal beds and tight sand formations.  The Company has
producing properties in Wyoming's Powder River Basin and exploitation and
development acreage in Canada and Alaska.  The Company's shares trade on the
American Stock Exchange under the symbol "SCU" and in Canada on the Toronto
Stock Exchange under the symbol "SME."

Storm Cat Energy Corporation

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J. Scott Zimmerman
President and Chief Executive Officer

/s/ J. Scott Zimmerman

NO STOCK EXCHANGE HAS REVIEWED OR ACCEPTS RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE

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