Madalena Ventures Inc. Mails Offer to Online Securityholders

/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

CALGARY, Sept. 26, 2012 /CNW/ - Madalena Ventures Inc. ("Madalena") (TSX-V: MVN) and Online Energy Inc. ("Online") (TSX-V: ONL) jointly announce that Madalena has mailed its formal offer documents to holders of outstanding securities of Online in connection with an offer to acquire all of the outstanding common shares of Online (the "Online Shares") for $0.35 cash per Online Share (including any Online Shares issued on exercise of outstanding options or performance warrants) prior to the expiry time of the offer (the "Offer").  The Offer will remain open for acceptance until 10:00 a.m. (Calgary time) on November 1, 2012, unless withdrawn or extended.  The Offer is conditional upon, among other things, at the expiry time of the Offer, and at the time Madalena first takes up Online Shares under the Offer, there being validly deposited under the Offer and not withdrawn at least 66 2/3% of the outstanding Online Shares (calculated on a diluted basis).

A Directors' Circular setting out the recommendation of the board of directors of Online in relation to the Offer has also been mailed to holders of securities of Online.  The directors of Online entitled to vote on the Offer have determined that the Offer is fair, from a financial point of view, to holders of Online Shares and is in the best interests of Online and the holders of Online Shares and has resolved to recommend that holders of Online Shares accept the Offer and tender their Online Shares to the Offer.

SOURCE: Online Energy Inc.

Dwayne H. Warkentin 
President and Chief Executive Officer
Madalena Ventures Inc
Phone: [phone] ext 229

Anthony J. Potter
Vice President, Finance and Chief Financial Officer
Madalena Ventures Inc.
Phone: [phone] ext 233

Steve Dabner 
President and Chief Executive Officer
Online Energy Inc
[phone] ext 228

Thomas Love
Chief Financial Officer
Online Energy Inc.
Phone: [phone] ext 227