NEWS

March 6, 2006

LITTLETON, Colo., March 8, 2006 (PRIMEZONE) -- Eternal Energy Corp. announced that it raised approximately $1,605,000 of financing in the first closing of a private placement from issuance of its common stock and warrants to purchase common stock to accredited investors.

The first closing occurred on March 2, 2006. In connection with the first closing, Eternal Energy issued 3,210,000 units of common stock and common stock purchase warrants, with each unit consisting of one share of its common stock and warrant to purchase one share of its common stock, at a per unit purchase price of $0.50. The warrants have an exercise period of two years and an exercise price of $1.00 per share. The warrants will be exercisable in cash, representing potential additional proceeds of $3,210,000, assuming the warrants are fully exercised in cash. The warrants also provide for cashless exercise under certain circumstances. Eternal Energy expects that additional units may be sold in subsequent closings of the private placement through March 17, 2006.

Neither the shares of common stock, the warrants sold to the investors, nor the shares of common stock to be issued upon exercise of the warrants have been registered under the Securities Act of 1933. Accordingly, these shares and warrants may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. Eternal Energy has agreed to file a registration statement covering resale by the investors of these shares and shares of common stock to be issued upon exercise of the warrants.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the common stock, warrants, or common stock to be issued upon exercise of the warrants. Any opportunity to participate in the private placement was available to a very limited group of accredited investors. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.