2010-06-21-2010-06-21

Acquired 50% WI in 6,239 acres in Divide Co., ND, Spyglass prospect.

Billings, Mont.-based American Eagle Energy Inc. (OTCBB: AMZG) and Eternal Energy Corp. will swap working interests in the Spyglass and Hardy prospects in North Dakota and Saskatchewan, respectively.

Eternal Energy will acquire a 50% working interest in the Spyglass prospect in approximately 6,239 net acres in Divide County. In exchange, American Eagle will acquire a 50% working interest in the Hardy prospect, in approximately 4,320 net acres in southeastern Saskatchewan, and also an existing, shut-in well bore. Eternal will manage future E&P activities in both prospects.

American Eagle president and chief executive Dick Findley says, "The combination of our geological expertise with Eternal's technical and financial resources will enable us to move forward with our exploration of the Spyglass prospect, as well as enable us to participate in the Hardy prospect, an area that is known to contain proven oil reserves."

The companies intend to sign an operating agreement by late July. The deal is expected to close on June 25.

American Eagle was incorporated in Nevada in 2007 as Yellow Hill Energy Inc.