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PetroHunter Energy Corporation Provides Update on Projects in Colorado and Australia

October 6, 2008

PetroHunter Energy Corporation (OTCBB: PHUN) today announced it has modified its drilling and development plans for its 20,000 net mineral acre Buckskin Mesa project in the Piceance Basin of Colorado, and has settled its two pending court cases. PetroHunter also announced that it encountered potentially significant oil shows in its Shenandoah #1 well drilled on one of the Company’s Exploration Permits in Australia.

Colorado — Buckskin Mesa Operations

As part of the settlement of the “Daniels Litigation” (described below), PetroHunter and Daniels agreed to extend the date for commencing the first well in Buckskin Mesa to July 31, 2009, and to increase the total minimum number of obligation wells to 20, through December 2010. PetroHunter and Falcon Oil & Gas Ltd. intend to close the first phase of their agreement (announced August 25, 2008) in the next few weeks, under which PetroHunter will begin testing and completion operations on one or more of the five wells, which PetroHunter previously drilled but did not complete in Buckskin Mesa.

PetroHunter intends to diligently move forward on the Buckskin Mesa gas gathering system. Under PetroHunter’s agreement with CCES Piceance Partners I, LLC (“Clear Creek”), PetroHunter and Clear Creek have begun ordering all necessary materials for construction of the Buckskin Mesa gathering facilities.

Australia — Potentially Significant Log and Oil Shows in the Beetaloo Basin Project

As announced in 2007, PetroHunter drilled its Shenandoah #1 well (the “Well”) on one of its Exploration Permits in the Northern Territory, Australia. In 2008, the Company engaged NuTech Energy Alliance to further analyze the logs from the Well, and to run a shale model, using recent North American oil productive fractured shale analogs. The preliminary results of the NuTech analysis for shales at approximately 3,000-foot depth indicate an estimated initial production rate of several hundred barrels a day (assuming a horizontal well), and a 3-year recovery of 70,000 barrels per well.

Settlement of Litigation

As previously disclosed by PetroHunter, on June 30, 2008 PetroHunter filed a law suit against Daniels Petroleum Company (“DPC”) in Denver, Colorado, in which PetroHunter asked the court to interpret the force majeure provisions in the existing contract between DPC and PetroHunter (the “Daniels Litigation”), related to PetroHunter’s drilling activities in Buckskin Mesa. On September 30, 2008, the parties finalized and entered into a settlement agreement on this matter and have filed a joint stipulation to fully dismiss the Daniels Litigation.

Also as previously disclosed, Century Drilling Company (“Century”) filed a law suit in December 2007 against PetroHunter and its wholly-owned Australian subsidiary (Sweetpea Petroleum Pty Ltd.) in the Supreme Court of Queensland, Australia, in which Century claimed that PetroHunter had breached certain obligations under the parties’ drilling contract (the “Century Litigation”) related to PetroHunter’s Australian operations. PetroHunter and Sweetpea filed counterclaims against Century in the Century Litigation. On August 25, 2008, the parties entered into a settlement agreement, which includes full dismissal of the Century Litigation.

“With the working capital available from the Falcon transactions, as well as removing the uncertainties by settling these two cases, PetroHunter has cleared the path to test Buckskin and to begin implementing our exploration and development plan on both our major assets,” stated PetroHunter Chairman and CEO, Charles B. Crowell. “We are also encouraged by the NuTech findings in Beetaloo and will continue to move forward on the opportunities presented in Buckskin Mesa and the Beetaloo Basin.”

About PetroHunter Energy Corporation

PetroHunter Energy Corporation, through the operations of its wholly-owned subsidiaries, PetroHunter Operating Company, and Sweetpea Corporation Pty Ltd., is a global oil and gas exploration and production company with primary assets consisting of various oil and gas leases and related interests in oil and natural gas properties, including approximately 20,000 net mineral acres in Colorado and an undivided 50 percent working interest in four exploration permits comprising approximately seven million acres in Australia. For more information, please visit www.petrohunter.com.

Forward-Looking Statements

Except for statements of historical fact, the information presented herein constitutes forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and other factors over which PetroHunter Energy Corporation, or any of its subsidiaries, has little or no control.

 Contacts: PetroHunter Energy Corporation Corporate Address 1600 Stout Street, Suite 2000 Denver, Colorado 80202 USA Phone (303) 572-8900 Fax (303) 889-8371  Charles B. Crowell Chairman and CEO (303) 572-8900  David E. Brody Senior Vice President and General Counsel (303) 572-8900  Investor Relations & Media Contact: CTA Integrated Communications Warren Laird Vice President Shirley Thompson President & CEO (303) 665-4200  

SOURCE: PetroHunter Energy Corporation




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