$20 Million Funding Facility for CanArgo.

Energy Editors/Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 11, 2004

CanArgo Energy Corporation (OSE: CNR)(OTCBB: GUSH) today announced that it has increased its existing funding facility with US-based investment fund Cornell Capital Partners LP to $20 million.

Under the revised Standby Equity Distribution Agreement Cornell has committed to provide up to $20 million of funding to be drawn down at CanArgo's discretion. CanArgo may draw down up to $600,000 in any seven-day period by issuing shares to Cornell. The facility may be used in whole or in part entirely at CanArgo's discretion, subject to an effective registration. The pricing will be set under the same terms as the previously announced funding arrangement.

CanArgo also announced that it has formally applied for a listing for its common stock on the American Stock Exchange (AMEX) in New York.

Dr. David Robson, Chief Executive Officer of CanArgo, commented on the financing, " We are delighted to have secured this increased funding facility. Access to these additional funds will allow us to accelerate the appraisal of our exciting Manavi discovery that flowed oil from the Cretaceous Limestone sequence under significant pressure during the initial well test. We are optimistic that this could be one of the most significant new reservoir discoveries in the Southern Caucasus. Fractured Upper Cretaceous limestones have proven to be some of the most prolific reservoirs across the world and are typically characterised by high well flow rates and high recovery factors. For example, wells in oil fields such as Karabulak-Achaluk, Khiancort and Malkobek-Veznesensk in the Northern Caucasus are reported to have produced at rates of up to 15,000 barrels of oil per day with recovery factors of up to 50%."

CanArgo is an independent oil and gas exploration and production company with its oil and gas operations currently located in the Republic of Georgia and the Caspian area. Further information on the Company is available at www.canargo.com and at http://www.sec.gov.

The matters discussed in this press release include forward looking statements, which are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such forward looking statements. Such risks, uncertainties and other factors include the uncertainties inherent in oil and gas development and production activities, the effect of actions by third parties including government officials, fluctuations in world oil prices and other risks detailed in the Company's reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission. The forward-looking statements are intended to help shareholders and others assess the Company's business prospects and should be considered together with all information available. They are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The company cannot give assurance that the results will be attained.