VANCOUVER, B.C.: Tower Energy Ltd ("Tower" of the "Company") is pleased to announce that the debt of $459,987.26 owed to the Company by Arapahoe Energy Corporation has been settled. Fifty (50) percent of the debt ($229,994) was paid in cash while the remaining fifty (50) percent was settled by the receipt of 229,994 Debenture Units issued by Arapahoe at an issue price of $1.00 per unit. Each unit is comprised of (i) a convertible secured debenture ("Debenture") in the amount of $1.50 (the "Repayment Amount") and (ii) four (4) purchase warrants ("Warrants") exercisable at $0.125 per share for a period of 24 months. The Debentures and Warrants are subject to a four month hold period that expires on August 12, 2007. 

The settlement is subject to final acceptance of the TSX Venture Exchange, to be satisfied on filing of customary post-closing documentation. For further information with respect to the Debenture Units, please see the Arapahoe Energy Corporation's news release dated March 12, 2007


Per "Charles Ross"

For further information, please contact:

Charles Ross
Suite 2110 -- 1177 W. Hastings Street
Vancouver, BC, Canada V6E 2K3
Tel: 604.669-4340
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.