Eaglewood Energy Inc.: Management Change and Issuance of Compensation Securities

Concurrently with this change of management, the Corporation desires to implement a new compensation program for management and key employees. The Corporation intends to issue an aggregate of 8,000,000 performance based warrants (the "Warrants") to the new incoming officer as well as to current officers and employees.

The terms of the Warrants are as follows:

- One quarter of the Warrants granted will vest on the later of: i) the date that is 6 months from the date of grant; or ii) the date that trading of the common shares of the Corporation closes at or above $0.85 per common share for 45 consecutive trading days. These Warrants will be exercisable at a price of $0.75 per common share.

- One quarter of the Warrants granted will vest on the later of: i) the date that is 12 months from the date of grant; or ii) the date that trading of the common shares of the Corporation closes at or above $1.10 per common share for 45 consecutive trading days. These Warrants will be exercisable at a price of $1.00 per common share.

- One quarter of the Warrants granted will vest on the later of: i) the date that is 18 months from the date of grant; or ii) the date that trading of the common shares of the Corporation closes at or above $1.40 per common share for 45 consecutive trading days. These Warrants will be exercisable at a price of $1.25 per common share.

- One quarter of the Warrants granted will vest on the later of: i) the date that is 24 months from the date of grant; or ii) the date that trading of the common shares of the Corporation closes at or above $2.00 per common share for 45 consecutive trading days. These Warrants will be exercisable at a price of $1.75 per common share.

The Warrants will expire on the earlier of: i) three years from the date of grant; and ii) 90 days after the holder ceases to be employed by the Corporation or its subsidiaries. Exercise of the Warrants is subject to the Corporation obtaining majority shareholder approval for the issuance, which approval the Corporation intends to obtain by written consents.

In addition to the issuance of the Warrants, the Corporation intends to issue up to 2,300,000 stock options pursuant to the Corporation's stock option plan exercisable at a price of $0.10 per share for a period of five years. Half of the options will vest one year from the date of grant and the other half will vest two years from the date of grant.

It is anticipated that the Warrants and options will be issued as follows:

                                                    Number of     Number of
Party              Position                          Warrants       Options

Brad Hurtubise     Incoming President and Chief     4,000,000     1,000,000
                   Executive Officer                                       

Michael McGowan    Chief Operating Officer          1,400,000       400,000

Chris Cornwell     Exploration Manager              1,400,000       400,000

Bruce Apana        Country Manager - Papua            800,000       300,000
                   New Guinea                                              

Arlene Weatherdon  Chief Financial Officer and        200,000       100,000
                   Corporate Secretary                                     

Dan Kendrick       Technical Advisor                  200,000       100,000

Eaglewood also reported unaudited financial results for the three months ended September 30, 2008, being the first quarter of its new financial year. Complete details of the September 30, 2008 financial statements and related management's discussion and analysis can be found on SEDAR at www.sedar.com.

No Regulatory authority has approved or disapproved the content of this release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Email: aweatherdon@eaglewoodenergy.ca