NEWS

July 13, 2009

Eternal Energy Corp. Announces Litigation Settlement

Littleton, Colorado; July 13, 2008 – Eternal Energy Corp. (OTCBB:EERG; the “Company”) announced today that it has favorably settled its lawsuit with Zavanna LLC, Prairie Petroleum, Inc., Trapper Oil Company, Inc. and Zavanna Canada Corporation (collectively, “Plaintiffs”).  Under the terms of the settlement agreement filed in Denver District Court on July 8, 2009, the Plaintiffs agreed to pay the Company $255,000 (“Settlement Payment”) and to dismiss with prejudice all claims against the Company and its President, Brad Colby, in exchange for the Company’s dismissal with prejudice of all counterclaims made by the Company.  The Settlement Payment will be paid to the Company in two installments over the course of the next sixty days.   

“We are pleased to have this matter behind us.” states Brad Colby, the Company’s President and CEO.  “While this litigation has hampered our ability to operate during the past nineteen months, it is gratifying to announce that our Company has been vindicated of any wrongdoing.” 


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 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, 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.

CONTACT:                Kirk Stingley
                                    Chief Financial Officer
                                    Eternal Energy Corp.
                                    303-798-5235