Eternal Energy Corp. Announces Final Agreement for Hardy Farm-out

LITTLETON, Colo., May 2, 2011 /PRNewswire/ -- Eternal Energy Corp. (OTCBB: EERG; "Eternal" or the "Company") is pleased to announce today that, together with its partner, American Eagle Energy Inc., 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 American Eagle 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.

"This new agreement represents the next step in the broadening of Eternal Energy's production capabilities, while maintaining a favorable economic risk profile," stated Brad Colby, the Company's Chief Executive Officer and President.  "We look forward to our partnering with Passport Energy in the drilling of the Hardy S HZ 1A4-16-4B4-9-4-21 well and thereafter."

After the second earning well is drilled, the Company and American Eagle Energy each will hold 37.5% working interest with Passport holding the remaining 25.0% in the affected acreage.

About Eternal Energy Corp.:

Eternal Energy Corp. is an oil and gas company engaged in the exploration of petroleum and natural gas.  The company was incorporated in Nevada on July 25, 2003 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 Company, 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, Eternal Energy Corp.  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 year ended December 31, 2010 and our other documents subsequently 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 Eternal Energy Corp.