ALANGE ENERGY CONFIRMS FINANCING IS IN PLACE FOR BALANCE OF 2010 CAPITAL PLAN

TORONTO, Sept. 1 /CNW/ - Alange Energy Corp. (TSXV: ALE) confirmed today that it has secured the debt financing required to fund its investment program for the balance of 2010. This plan includes the execution of its exploration, appraisal and development program over the last six months of 2010 comprising 12 new wells and 4 workovers and the completion of three infrastructure projects at its Carbonera gas operations. As of today, the Company requires $35 million of funding to complete this capital program. In addition, the Company has a separate exploration budget of up to $5 million to gather seismic data at Arrendajo and Carbonera and $4 million of payments related to its option to acquire additional working interests in Catguas. To fund the $44 million of expenditures required over the balance of 2010, the Company has secured approximately $32 million in additional term loan facilities. With a current cash balance of approximately $3 million, the remaining balance of capital funding required, in addition to general and administrative expenses and debt service, will be sourced from internally generated cash flow from operations. The expected average production of 4,700 barrels oil equivalent per day ("boed") during the last four months of the year (exit rate of 8,000 boed) will generate more than enough operating cash flow to cover these requirements.

Luis E. Giusti, the Company's Chief Executive Officer, stated, "we have an ambitious capital investment program to be conducted over the balance of 2010 that is crucial for continuing our ramp up of production. As a result of a number of inquiries following yesterday's conference call, we feel it is important to clarify that we have secured the necessary external debt financing required to carry out these initiatives and as such, have no need for equity financing to fund our organic growth. The Colombian and international financial institutions have been very supportive of our Company as demonstrated tangibly through the debt facilities we have successfully put into place in recent months."

As of today, the Company has closed the following new credit facilities, each of which is secured with cash flows from oil sales from the Cubiro property in an amount required to meet the monthly debt repayment obligations, subject to a limit not to commit more than 30% of crude oil production to service the debt repayments:

    
    -   a three-year term loan pursuant to a May 25, 2010 commitment letter
        from a local Colombian bank in the amount of Colombian peso ("COP")
        27.4 billion (equivalent to $15.0 million) repayable in 36 equal
        monthly installments of principal and interest. The loan bears
        interest at the local Colombian market weekly average rate of
        fixed-term deposits ("DTF") plus 6.5%. DTF as of yesterday was 3.48%.

    -   a one-year term loan with a local Colombian bank in the amount of COP
        12.0 billion (equivalent to $6.6 million) with interest only monthly
        payments and the principal due upon maturity of the facility. The
        loan bears interest at DTF plus 3.32%.

    -   a $3.5 million second disbursement pursuant to a term loan agreement
        entered into with LW Securities in April 2010. Repayable over a
        two-year period in equal monthly installments of principal and
        interest, the loan bears interest at 14% per annum.
    

In addition, the Company has arranged a new three-year term loan with a local Colombian financial entity, also secured with cash flows from Cubiro, in the amount of COP 12.5 billion (equivalent to $6.8 million) repayable in 36 equal monthly installments of principal and interest. The loan bears interest at fixed rate of 12.68% per annum. The Company will draw down the proceeds from this loan facility next week.

The Company has also increased its revolving credit facilities to provide up to an additional $7.5 million to fund short-term working capital requirements.

In addition to these external sources of debt financing, the Company expects to improve its operating cash flow by implementing a new commercial strategy commencing October 1, 2010 for oil sales from its Cubiro property. This new program, which is based on long haul, high volume ground transportation and direct international sales, will see a significant reduction in the time taken to collect the proceeds from oil sales from the current approximately 65 days down to 15 days.

Alange Energy is a Canadian-based oil and gas exploration and production company, with working interests in 12 properties in four basins in Colombia. Further information can be obtained by visiting our website at www.alangeenergy.com.

Cautionary Note Concerning Forward-Looking Statements

This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production, revenue, cash flow and costs, reserve and resource estimates, potential resources and reserves and the company's exploration and development plans and objectives) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the company based on information currently available to the company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from the estimates and assumptions; failure to establish estimated resources or reserves; fluctuations in petroleum prices and currency exchange rates; inflation; changes in equity markets; political developments in Colombia; changes to regulations affecting the company's activities; uncertainties relating to the availability and costs of financing needed in the future; the uncertainties involved in interpreting drilling results and other geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the company's periodic reports filed on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

Information in this press release expressed in barrels of oil equivalent (boe) is derived by converting natural gas to oil in the ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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For further information: Michael Davies, Chief Financial Officer, 416-360-4653, ext. 224