Powder River Basin Gas Corporation Announces New Gas Field Discovery in Wyoming.

Business Editors

Powder River Basin Gas Corporation(OTCBB:PRVB) announced today that through its "proposed" partnership with LZT Properties, LLC., a Wyoming based oil & gas company, the Grande #1 exploration well in Converse County, Wyoming has encountered a gas bearing "commercial pay zone" at a drill test depth of approximatley 650 feet. The well had a hydrocarbon bearing reservoir defined by log and pressure gradient sampling.

The Grande #1 well, the first "approved" of 2 locations "staked," penetrated approximately 20 feet(gross) of electric log calculated gas bearing reservoir below the White River Sand in the Dakot/Lakota Formation. Located in an area 3 miles south of Douglas, Wyoming the new field has 3 "major" gas pipelines available for immediate delivery.

"We anticipate having a "gas transportation agreement" in place within the next 45-60 days," said Greg Smith, Powder River Basin Gas Corp. Chairman. "The success of this exploration well highlights the Company's strategy of acquiring low cost high margin leases with high grade prospects near proven fields," Smith also said.

About Powder River Basin Gas Corporation

Powder River Basin Gas Corporation is an exploration, development and production company engaged in the evaluation and development of coal-bed methane ("CBM") reserves as well as shallow oil reserves within the Powder River Basin in Wyoming. The Company's focus is to obtain leasehold interest in acreage within the Powder River Basin that is in proven geologic settings (known productive coal seams) and is adjacent or near developed leases, which are held by larger CBM developers and operators such as Devon Energy(NYSE:DVN), Western Gas Resources, Williams Companies(NYSE:WMB), Phillips Petroleum(NYSE:P), J.M. Huber and others. This close proximity to other operators allows PRVB to benefit from the established infrastructure of gathering systems, pipelines, electricity sources, roads, etc. In addition, PRVB can benefit from the dewatering of the coals that has already occurred by the offset operators, which help to reduce the company's water disposal costs. The Company's geologic and engineering focus is concentrated on the commercial development of natural gas from four or five different coal seams in various leases in and around the Sheridan and Gillette areas. In addition, the company has identified the potential of shallow oil reserves (at a depth of 600 to 800 feet) on several of their leases and will pursue commercialization of these assets.

Forward-looking statements contained in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by some statements made in this release. You are cautioned that all forward-looking statements involve risks and uncertainties. Among the factors that could cause results to differ materially are the following: lack of availability of financing; inability to control costs or expenses; success rates for exploratory drilling for oil and gas, transportation problems; and lack of market acceptance of the Company's products, etc. Reference is also made to the risk factors contained in the Company's Registration Statement on Form S-3, which are incorporated herein by reference.

For additional information on Powder River basin Gas Corp.go to: powderriver-gascorp.com or Contact: Jay Shrewder, The Franklin Group Phone: [phone] or 512/857-0124 fax.