Mogul Energy International, Inc. Announces a Letter Of Intent Agreement With Powderhorn Energy, LLC

SEATTLE, WA-- June 29, 2008-- - Mogul Energy International, Inc. ("Mogul") (MGUY: OTCBB; FSE:BKX) announced it has signed a Letter of Intent (“LOI”) with Powderhorn Energy, LLC of Denver, Colorado and it’s financial partners (collectively “Powderhorn”). Subject to the execution of additional agreements (“Agreements”) between both entities, Powderhorn will participate in the proposed drilling program offered by Mogul along the upper Texas Gulf Coast (the “Drilling Program”). The rights and obligations of Mogul and Powderhorn, as to each well within the Drilling Program, will be negotiated on a well by well basis.

The LOI constitutes statements of mutual intention on the part of both parties with respect to the contemplated transaction. Neither the LOI nor the proposed terms of the AGREEMENTS, as outlined in the LOI constitute a binding agreement between the parties as it does not contain all matters upon which an agreement must be reached in order for the transaction to be consummated. A binding commitment with respect to the transaction contemplated herein will result only from the execution and delivery of the AGREEMENTS, the terms and conditions of which are currently being negotiated. The LOI will terminate and be of no further force or effect unless the AGREEMENTS are executed and delivered by July 19, 2010, unless such date is extended by mutual consent of Powderhorn and Mogul.

Mr. Naeem Tyab, the Company’s President, stated: "Mogul as previously announced, has committed its future operations to the Texas onshore area; the announced Letter of Intent with Powderhorn is our first step towards creating an operating entity in that region of the country." Mr. Tyab went on to say that "Mogul continues to refine and high grade its geological and geophysical evaluations and reviews of the numerous prospects in the region and looks forward to a successful drilling program with our partners.” Mr. Tyab further noted that "We are anticipating the receipt of the proposed AGREEMENTS any day and look forward to creating a binding agreement between ourselves and Powderhorn as soon as possible."

Powderhorn’s representative, Mr. David Keller, commented that: "Powderhorn is excited to be participating in this drilling program that Mogul has assembled and look forward to working with them well into the future. Partnering our experienced team with Mogul’s knowledgeable organization in the Texas Gulf Coast region will assure our financial backers that we have assembled the best group of individuals to lead this drilling program forward. We look forward to a successful partnership with Mogul well into the future."

Information concerning Mogul Energy International, Inc.:

Mogul Energy International, Inc. (“Mogul”) is an oil and gas exploration company with headquarters in Seattle, Washington. The common shares of Mogul are quoted on the OTC Bulletin Board (OTCBB) system under the symbol "MGUY," and the Frankfurt Stock Exchange (“FSE”) under the symbol ‘BKX’. Further information concerning Mogul can be found in the Company’s filings with the U.S. Securities and Exchange Commission (http://www.sec.gov).

Information concerning Powderhorn Energy, LLC: Powderhorn Energy, LLC. (“Powderhorn”) is engaged in oil and gas development, production and exploration activities throughout the United States and are located in Denver, Colorado.

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