EastSiberian Plc (TSXV: ESB) announces the farm-in agreements with East Siberian Resources Ltd. regarding Licences in Sakhalin and East Siberia, Russia have expired

ST. HELIER, Jersey, April 15, 2013 /CNW/ - EastSiberian Plc ("EastSiberian " or the "Corporation"), an international junior oil exploration company incorporated in the Bailiwick of Jersey,  announces that the  previously announced Farm-in Agreement with East Siberian Resources Ltd. ("ESR") expired on March 31, 2013, due to unsuccessful fund raising initiatives. The Company is currently engaged with specific investors examining existing producing properties and other development opportunities in Russia that may be a viable alternative to the farm-in agreement.

Farm-in Agreement

The Farm-in Agreement announced on June 27, 2012, provided the Corporation an opportunity to earn up to a 51% equity stake in two wholly-owned Cyprus subsidiaries of ESR, Elranio Holdings Ltd. ("Elranio") and Lesona Holdings Ltd. ("Lesona") collectively, the ("Holding Companies").  Elranio indirectly holds a Russian entity, a 100% interest in an exploration and production license located on the eastern onshore portion of the Sakhalin Island. Lesona indirectly holds one oil production licence and one exploration and production licence located in Eastern Siberia.

The Corporation was pursuing fund raising initiatives for approximately USD$50 million to fully fund the work program contemplated by the Farm-in Agreement (the "Work Program") and for general corporate purposes.  The fund raise was being pursued by a brokered private placement of common shares of the Corporation at a market determined price (the "Private Placement"). Given the difficult financial investment conditions, the Corporation was unsuccessful in obtaining the investment funds specific to this farm-in agreement by March 31, 2013, and the farm-in agreement expired.

The Corporation is presently involved with some specific investors looking at various strategic oil property investments that could involve existing oil production and/or development in Russian-based oil properties. The Corporation will report on the results of these investment discussions in due course.

Forward looking Statements or Information

Certain statements included in this news release constitute forward-looking statements or forward-looking information under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements or information concerning EastSiberian in this news release may include, but are not limited to statements or information with respect to: business strategy and objectives; development, exploration, acquisition and disposition plans, and the timing and results thereof. Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although EastSiberian believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on such statements because EastSiberian can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things: the timely receipt of any required regulatory and shareholder approvals; the ability of EastSiberian to obtain qualified staff, equipment and services in a timely and cost efficient manner; and the ability of EastSiberian to obtain financing on acceptable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.

Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by EastSiberian and described in the forward-looking statements or information. These risks and uncertainties may cause actual results to differ materially from the forward-looking statements or information.

The forward-looking statements or information contained in this news release are made as of the date hereof and EastSiberian undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

Neither the 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 release.

SOURCE: EastSiberian Plc

EastSiberian Plc 

Maxim Sidorin
CEO
9 Esplanade
St. Helier, Jersey
Tel: [phone]
Email: [email protected]

Graeme Phipps
President
9 Esplanade
St. Helier, Jersey,
Tel: [phone] or [phone]
Email: [email protected]

For further information in respect of the Corporation, please visit the Corporation's website at: www.eastsiberianplc.com