Pyramid Petroleum closes revolving demand loan facility

On May 2, 2007, Pyramid Petroleum Inc. announced the closing of a revolving demand loan facility from National Bank of Canada. The facility provides funds of up to a maximum of $4 million collateralized by a charge over the Company's Montana and Alberta assets, with interest calculated at the bank's prime rate plus 0.5%. Pyramid used the facility to pay out a loan due to the operator of the Montana and Alberta properties and to retire a note due to its CEO for the October 2006 purchase of a working interest in these properties. As a result, Pyramid received assignment of the legal title on the properties.

Pyramid Petroleum is an oil and gas exploration and production company based in Calgary, Alberta. Its focus is on development of domestic and international hydrocarbon projects. Pyramid has non-operated working interests in producing properties located in Montana/Alberta and the Gulf of Mexico. The Company's shares are listed on the TSX Venture Exchange under the symbol PYR.

Pyramid was advised in this matter by Gary Rose of the Calgary office.