Mystique Energy Executes A Forbearance Agreement

Mystique Energy Inc. announces that it has executed a forbearance agreement with its primary lender. The Lender has agreed to refrain from exercising certain of its rights and remedies under the lending agreement between Mystique and the Lender to provide Mystique sufficient time to remedy a default with regard to Mystique's working capital deficiency.

Under the terms of the forbearance agreement, by 2007-03-23, Mystique must complete certain steps in its restructuring plan to satisfy the Lender that Mystique will remedy the default within a timeframe satisfactory to the Lender. Upon completion of these steps, the Lender may extend the period of the forbearance agreement.

Mystique management is confident that the forbearance period will be extended allowing Mystique to successfully address its working capital deficiency.

The lender may also entertain a proposal from Mystique to extend additional funds to finance the tie-in of one well in the Wildcat Hills area. The well was drilled, completed and production tested in late 2006.

The tie-in of this well would add an estimated 125 barrels of oil equivalent ("boepd") to Mystique's current production of 440 boepd, more than offsetting the 85 boepd reduction in production that resulted from the sale of Mystique's Garrington assets. -- www.cnxmarketlink.com