Source MARKET NEWS

Date 12/14/2007

Time 11:01:16 AM

Company Equus Energy Corporation

Title Loan and

Private Placement of Convertible Promis

CDNX Symbol: EQE

Press Release

EQUUS ENERGY CORPORATION ("EQE-V")

- Loan and Private Placement of Convertible Promissory Note

Equus Energy Corporation ("Equus" or the "Company") announced today

that it has arranged a loan from an officer of the Company in the principal

amount of US$540,000 under a loan agreement dated December 12, 2007. As

sole security for the loan, the Company has agreed to issue to the lender a

convertible promissory note by way of private placement, subject to the

conditional acceptance of the TSX Venture Exchange.

The loan and convertible promissory note will be due on December 31,

2008 with interest payable bi-annually at the rate of 8% per annum. The

lender may convert the principal amount of the promissory note into common

shares of the Company on or before the due date at the conversion price of

CDN$0.05 per share. The lender may also elect to convert any accrued and

unpaid interest outstanding under the note into common shares of the

Company at the market price of the Company's common shares at the time of

conversion.

In consideration of the loan, the Company has agreed to issue to the

lender a transferable share purchase warrant entitling him to purchase up

to a total 5,400,000 common shares of the Company exercisable for two years

from the date of the convertible promissory note at a price of CDN$0.10 per

share.

The convertible note and warrant are subject to the conditional

acceptance of the TSX Venture Exchange.

Proceeds from the loan will be used to fund the development of the

Company's mining properties and for general working capital.

For more information about Equus, please contact Stanley Lanzet at 604

218-6677.

The TSX Venture Exchange does not accept responsibility for the

adequacy or accuracy of this release.

TEL: (604) 218-6677 Equus Energy Corporation

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