Action Energy Inc. Announces Appointment of Receiver and Resignation of
Directors and Certain Officers

    
    /THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
    ANY UNITED STATES NEWS SERVICE. ANY FAILURE TO COMPLY WITH THIS
    RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS./
    

TSX-V Symbol "AEC"

CALGARY , Oct. 28 /CNW/ - Action Energy Inc. ("Action" or the "Company") announces that National Bank of Canada ("National Bank") has obtained an order (the "Order") from the Court of Queen's Bench of Alberta appointing Ernst & Young Inc. as Receiver and Manager over all of the undertakings, property and assets of Action. Action also announces that, in connection with the obtaining of the Order by National Bank, the directors and the Vice President, Finance and Chief Financial Officer and the Corporate Secretary of Action have resigned from their respective positions effective immediately.

Action Energy Inc. is a publicly traded Calgary , Alberta based junior oil and natural gas exploration and production company with operations concentrated in core areas in southern Saskatchewan and central and southern Alberta.

    
    NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
    THE TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
    

For further information: ACTION ENERGY INC., Suite 800, 350 - 7th Avenue S.W., Calgary, Alberta, T2P 3N9, Phone: [phone], Fax: [phone], E-mail: [email protected], Website: www.action-energy.com