Rancher Energy Corp. Announces Extension and Revised Terms of GasRock Loan

DENVER, CO, Oct 23 (MARKET WIRE) --
Rancher Energy Corp. (OTCBB: RNCH) today announced it has negotiated a
six-month extension of its debt financing with GasRock Capital LLC, and
as part of the extension has agreed to pay down $2.24 million of
principal, resulting in a new loan balance of $10 million.

The loan remains a senior obligation at an annual interest rate of 12% or
one-month LIBOR plus 600 basis points, whichever is greater. The term has
been extended from October 31, 2008, to April 30, 2009, or upon repayment
of all outstanding interest and principal. There is no prepayment penalty
and interest is payable monthly. Additionally, GasRock's overriding
royalty interest (ORRI) in all current Rancher Energy leases as well as
any additional leases acquired by the Company during the term of the loan
has been increased from 2% to 3%, although Rancher Energy retains the
right to buy back one third of that ORRI at or before final maturity. For
additional details on the financing, please refer to the term credit
agreement and first amendment filed on Form 8-K Reports with the SEC.

About Rancher Energy Corp.

Rancher Energy is an innovative oil & gas exploration & development
company with a targeted strategy to reinvigorate older, historically
productive oil fields in the hydrocarbon-rich Rocky Mountain region of
the United States. Using waterflood injection and CO2 flooding, coupled
with other leading edge hydrocarbon recovery techniques such as 3-D
seismic data and directional drilling, Rancher Energy expects to extract
proven in-place oil that remains behind in mature fields. Rising energy
demand and strong oil & gas prices combined with advances in oil recovery
have made this strategy profitable. Rancher Energy is taking advantage of
this convergence by acquiring low risk, high quality, historically
productive plays with under-exploited reserves and developing customized
enhanced recovery strategies to maximize production.

About GasRock

GasRock Capital LLC is the investment arm of Weisser, Johnson & Co.
specializing in direct mezzanine debt and project equity investments in
high-growth energy companies. The Houston-based fund invests in oil & gas
development drilling and midstream natural gas energy projects in sizes
ranging between $5 million and $100 million, or larger. GasRock was
founded in June 2005 and has facilities in place exceeding $450 million.

Forward-Looking Statements

This press release includes forward-looking statements as determined by
the U.S. Securities and Exchange Commission (the "SEC"). All statements,
other than statements of historical facts, included in this press release
that address activities, events, or developments that the Company
believes or anticipates will or may occur in the future are
forward-looking statements. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors
include the Company's ability to obtain financing to implement its
waterflood plan, to construct pipeline and other infrastructure, and for
other operational and working capital purposes, the uncertainty of
recovery factors for the enhanced oil recovery projects, the volatility
of oil prices, general economic and business conditions, and other
factors over which the Company has little or no control. The Company does
not intend (and is not obligated) to update publicly any forward-looking
statements. The contents of this press release should be considered in
conjunction with the warnings and cautionary statements contained in the
Company's recent filings with the SEC.

Contacts:

Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044

John Works
Chief Executive Officer
Rancher Energy Corp.
303-629-1125

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