PRESS RELEASE

DEER LAKE OIL& GAS INC. ANNOUNCES NEW PRIVATE PLACEMENT

October 22, 2009

Deer Lake Oil & Gas Inc. plans to raise up to C$ 4,000,000 through the private placement of 16,000,000 Class A Common Shares at a price of C$0.25 per share. Closing of the offering is scheduled for November 15, 2009.

The proceeds will be used for its Western Adventure gas/condensate project, for a multi-well drilling program in the Deer Lake Basin with both shale gas and conventional oil & gas targets supported by 2D seismic programs and for general corporate purposes.

Deer Lake Oil & Gas Inc. is a St. John’s, Newfoundland and Labrador based oil and gas exploration company with its activities concentrated in Western Newfoundland.

For further information please call 709-579-5050 or Fax 709-726–0584 or access our website at www.deerlakeoilandgas.com.

This press release is made solely for informational purposes and under no circumstances is it to be construed as a public offering of securities.