American Eagle Energy Inc. Announces Final Agreement for Hardy Farm-out

BILLINGS, Mont., May 2, 2011 /PRNewswire/ — American Eagle Energy Inc. (OTCBB: AMZG; “American Eagle” or the “Company”) is pleased to announce today that, together with its partner, Eternal Energy Corporation, the Company has finalized a farm-out agreement with Passport Energy Ltd. on the Hardy Bakken Field in southeast Saskatchewan, Canada.

The agreement allows for Passport to earn 25% working interest in up to two wells and associated acreage by paying 38.5% of the drilling, completion and equipping costs associated with each well. The Company and Eternal Energy will equally share the remaining cost on the earning wells. The first earning well, Hardy S HZ 1A4-16-4B4-9-4-21, is permitted and expected to spud in the second quarter, 2011.

“We are pleased to execute this agreement with Passport and look forward to working with them to advance the development of the Hardy Bakken Field,” stated Richard Findley, the Company’s Chief Executive Officer. “We believe this farm-out provides a prudent strategy to extend the Company’s capital while maintaining a major interest in our field.”

After the two earning wells are drilled, the Company and Eternal Energy each will hold 37.5% working interest with Passport holding the remaining 25.0% in the affected acreage.

About American Eagle Energy Inc.:

American Eagle Energy Inc. is an oil and gas company engaged in the exploration of petroleum and natural gas. The company was incorporated in Nevada on March 14, 2007 to engage in the acquisition, exploration and development of natural resource properties.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements relating to the future anticipated direction of the industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth, potential contracts, and/or aspects of litigation. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and, accordingly, such results may differ from those expressed in any forward-looking statements made by, or on behalf of, American Eagle Energy. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, and domestic and global economic conditions. Persons are encouraged to read our Annual Report on Form 10-K for the eight-month period ended December 31, 2010 and our other documents filed with the Securities and Exchange Commission for meaningful cautionary language in respect of forward-looking statements in this press release. Interested persons are able to obtain free copies of filings containing information about the Company at the SEC’s internet site (http://www.sec.gov). The company assumes no obligation to update any of these forward-looking statements.

    CONTACT:      Richard Findley
                  Chief Executive Officer
                  American Eagle Energy Inc.
                  406-294-9765

SOURCE American Eagle Energy Inc.