American Eagle Energy Inc. Announces Successful Drilling of a Second Development Well in the Hardy Field (Bakken Formation), Southeast Saskatchewan

BILLINGS, Montana, June 8, 2011 /PRNewswire/ -- American Eagle Energy Inc. (OTC Bulletin Board: AMZG)("American Eagle" or the "Company") is pleased to announce that it, along with its working interest partners Eternal Energy Corp. ("Eternal Energy") and Passport Energy Ltd. ("Passport Energy"), has successfully completed drilling and casing its Hardy S 1A4-16-4B4-9-04-21W2 well (the "Hardy 4-16 well") ahead of schedule.  The Bakken formation well was drilled to a depth of approximately 3,504 meters and extended horizontally for approximately 1,320 meters.  The well is located approximately one-half mile west of the Hardy 7-9 producing well in southeastern Saskatchewan, in which the Company and Eternal Energy each maintain 50% working interests.  The initial drilling of the Hardy 4-16 well was completed in 18 days instead of 21 days.  The Company expects to complete a 29-stage fracture stimulation of the well later this month.

Pursuant to the previously announced farm-out agreement among the three companies, American Eagle and Eternal Energy will each maintain a 37.5% working interest in the new well, but each will only pay 30.75% of the drilling, completing and equipping costs.  The remaining drilling, completing, and equipping costs will be paid by Passport Energy, which will earn a 25% working interest in the well.  The Hardy 4-16 well represents the initial earning well for the farm-out agreement among the three companies.

"We are excited to announce that we have a second Bakken well within the Hardy Property, and pleased that that the drilling of this well was completed at a substantial cost savings to the Company," stated Richard Findley, the Company's Chief Executive Officer.  "As stated previously, the successful completion of the Hardy 4-16 well is an important component of our 2011 capital program, as well as our long-term strategy for developing our significant acreage positions within the Williston and Southern Alberta Basins."

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 Inc.  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, our Quarterly Report on Form 10-Q for the three-month period ended March 31, 2011, 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.

SOURCE American Eagle Energy Inc.

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