Exall Energy Corporation announces closing of fully marketed public offering of flow-through common shares

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CALGARY, Oct. 23, 2012 /CNW Telbec/ - Exall Energy Corporation (TSX: EE EE.DB) ("Exall", or the "Company") is pleased to announce that it has closed its previously announced fully marketed public offering (the "Offering") of common shares issued on a "CEE flow-through" basis under the Income Tax Act (Canada) (the "Flow-through Shares") by way of a short form prospectus. Under the Offering, the Company issued 3,221,000 Flow-through Shares at a price of $1.00 per Flow-through Share for total gross proceeds of $3,221,000.

The syndicate of agents for the Offering was co-led by Stonecap Securities Inc. and Emerging Equities Inc., and included Raymond James Ltd. and Acumen Capital Finance Partners Limited (collectively, the "Agents").  The Agents were paid a cash commission of 7% of the gross proceeds raised through the Agents under the Offering, and received 161,050 compensation options (each a "Compensation Option") entitling them to acquire up to 161,050 common shares of Exall at a price of $1.00 per Compensation Option expiring on April 23, 2014.

The gross proceeds from the issuance of the Flow-through Shares under the Offering will be used by Exall to incur Canadian exploration expenses ("CEE") at its core Marten Mountain, Mitsue, Alberta property on or prior to December 31, 2013. Exall will renounce CEE to subscribers of Flow-through Shares effective on or before December 31, 2012.

Flow-through Shares issued pursuant to the Offering will be freely tradable under applicable securities laws in force in Canada.

About Exall
Exall is a junior oil and gas company active in its business of oil and gas exploration, development and production from its properties in Alberta. Exall Energy is currently developing the new Mitsue area Marten Mountain discovery in north-central Alberta.

Exall Energy currently has 66,634,854 common shares, and $23.0 million principal amount of convertible unsecured subordinated debentures outstanding. The Company's common shares and convertible unsecured subordinated debentures are listed on the Toronto Stock Exchange under the trading symbols EE and EE.DB, respectively.

Reader Advisory
This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions, including those relating to the use of proceeds of the offering, results of operations and financial condition, capital spending, financing sources, commodity prices and costs of production. By their nature, forward-looking statements are subject to numerous risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, actual results may differ materially from those predicted. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such factors include fluctuating commodity prices, capital spending and costs of production, and other factors described in the Company's most recent Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com. Such forward-looking statements are made as at the date of this news release, and the Company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.

SOURCE: EXALL ENERGY CORPORATION

Exall Energy Corporation

Frank S. Rebeyka
Vice Chairman
Tel: [phone]
 
Roger N. Dueck
President & CEO
Tel: [phone] x 223
[email protected] 

Warren F.E. Coles
VP - Finance & CFO
Tel: [phone] x 224
 
Please visit Exall Energy's website at: www.exall.com

Renmark Financial Communications Inc.
Maurice Dagenais: [email protected]
Nadia Marks : [email protected]
Tel.: [phone] or [phone]
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