MGUY Mogul Energy International Inc (PK)

Mogul Energy International, Inc. ("Mogul") (OTCBB: MGUY) (FRANKFURT: BKX) announced it has signed a Letter of Intent ("LOI") with Powderhorn Energy, LLC of Denver, Colorado and it's financial partners (collectively "Powderhorn"). Subject to the execution of additional agreements ("Agreements") between both entities, Powderhorn will participate in the proposed drilling program offered by Mogul along the upper Texas Gulf Coast (the "Drilling Program"). The rights and obligations of Mogul and Powderhorn, as to each well within the Drilling Program, will be negotiated on a well by well basis.

The LOI constitutes statements of mutual intention on the part of both parties with respect to the contemplated transaction. Neither the LOI nor the proposed terms of the AGREEMENTS, as outlined in the LOI constitute a binding agreement between the parties as it does not contain all matters upon which an agreement must be reached in order for the transaction to be consummated. A binding commitment with respect to the transaction contemplated herein will result only from the execution and delivery of the AGREEMENTS, the terms and conditions of which are currently being negotiated. The LOI will terminate and be of no further force or effect unless the AGREEMENTS are executed and delivered by July 19, 2010, unless such date is extended by mutual consent of Powderhorn and Mogul.

Mr. Naeem Tyab, the Company's President, stated: "Mogul as previously announced, has committed its future operations to the Texas onshore area; the announced Letter of Intent with Powderhorn is our first step towards creating an operating entity in that region of the country." Mr. Tyab went on to say that: "Mogul continues to refine and high grade its geological and geophysical evaluations and reviews of the numerous prospects in the region and looks forward to a successful drilling program with our partners." Mr. Tyab further noted that: "We are anticipating the receipt of the proposed AGREEMENTS any day and look forward to creating a binding agreement between ourselves and Powderhorn as soon as possible."

Powderhorn's representative, Mr. David Keller, commented that: "Powderhorn is excited to be participating in this drilling program that Mogul has assembled and look forward to working with them well into the future. Partnering our experienced team with Mogul's knowledgeable organization in the Texas Gulf Coast region will assure our financial backers that we have assembled the best group of individuals to lead this drilling program forward. We look forward to a successful partnership with Mogul well into the future."

Information concerning Mogul Energy International:

Mogul Energy International, Inc. ("Mogul") is an oil and gas exploration company with headquarters in Seattle, Washington. The common shares of Mogul are quoted on the OTC Bulletin Board (OTCBB) system under the symbol "MGUY," and the Frankfurt Stock Exchange ("FRANKFURT") under the symbol 'BKX'. Further information concerning Mogul can be found in the Company's filings with the U.S. Securities and Exchange Commission (http://www.sec.gov).

Information concerning Powderhorn Energy, LLC: Powderhorn Energy, LLC. ("Powderhorn") is engaged in oil and gas development, production and exploration activities throughout the United States and are located in Denver, Colorado.

Forward-Looking Statements:

This news release contains "forward-looking statements" within the meaning of the securities laws, which are based on current expectations and beliefs, as well as on a number of assumptions concerning future events made with information that is currently available. Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Inherent in Mogul Energy International, Inc.'s ("Mogul") business plan is a belief that Mogul can successfully explore oil and gas properties in Canada and the United States, and that Mogul can participate in the development of those properties. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of Mogul's control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to Mogul Energy's filings with the U.S. Securities and Exchange Commission. Mogul assumes no obligation to update or supplement such forward-looking statements other than as required by law.

SOURCE Mogul Energy International, Inc.

Contact Information: Company Contact Naeem Tyab Mogul Energy 206-357-4220 naeem@mogulenergy.com http://www.mogulenergy.com