Galaxy Energy Submits Comprehensive Plan to Meet Amex Continued Listing Standards

DENVER, May 11 /PRNewswire-FirstCall/ -- Galaxy Energy Corporation announced today that it has submitted a comprehensive plan to the American Stock Exchange (Amex) which details actions it has taken, or will take, to achieve compliance with Section 1003(a)(iv) of the Company Guide for continued listing on the Amex by July 24, 2006.

The plan includes the raising of $4.5 million in Subordinated Convertible Debenture financing that Galaxy announced on April 26, 2006. The Amex was unaware of the completion of that financing at the time it sent notice to Galaxy that the Company did not meet one of the Amex's continued listing standards.

About Galaxy Energy

Galaxy Energy Corporation, a development stage oil and gas exploration and production company, is focusing on acquiring and developing coalbed methane in the Powder River Basin of Wyoming and Montana and other unconventional natural gas properties in the Piceance Basin of Colorado, in addition to exploration activities in Germany, Romania and Texas. The company conducts its exploration activities through two wholly owned subsidiaries, Dolphin Energy Corporation and Pannonian International, Ltd.

Forward Looking Statement

This press release consists of forward-looking statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and actual results could differ materially from those indicated by such forward looking statements. The Company assumes no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise. Please refer to the Company's filings with the United States Securities and Exchange Commission for discussions of risks and uncertainties found in Forms 10-K (annual report), 10-Q (quarterly report) and other filings.

Additional information may be found at the Galaxy Energy Corporation Web site, http://www.galaxyenergy.com/ or by calling Brad Long, Investor Relations/Galaxy Energy at [phone], Bevo Beaven or Bill Conboy at CTA Public Relations at [phone], or Tina Cameron, Renmark Financial Communications at [phone].