Montana Exploration Corp. announces series of convertible debentures

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE DISTRIBUTION SERVICES/

CALGARY, Jan. 29, 2014 /CNW/ - Montana Exploration Corp. ("Montana") (TSXV:MTZ) announces that it intends to enter into a series of debentures with ANG Partners, Ltd. ("ANG"), an affiliate of James Collins, a control person and director of Montana, and Blue Sky Exploration Limited ("Blue Sky"), an affiliate of Julian McIntyre, a control person and director of Montana, pursuant to which Montana will borrow the principal amount of $2,000,000 from ANG and $1,250,000 from Blue Sky. ANG and Blue Sky may enter into additional debentures in the aggregate principal amount of up to $2,250,000. The debentures will bear an interest rate of 12% per annum and, at any time before five years from the effective date of the debenture, the principal amount owing will be exchangeable into common shares in the capital of Montana (the "Shares") at a price of $0.25 per Share. If the previously announced arrangement between Montana and Waldron is completed and the previously announced concurrent private placement of ANG and Blue Sky (the "Private Placement") for Shares at a price of $0.25 per Share is completed, the debentures will be cancelled, no interest will be payable and the principal amounts owing under the debentures will represent an advance on the subscription amounts owing from ANG and Blue Sky pursuant to the Private Placement.

This transaction is subject to TSX Venture Exchange approval.

About Montana Exploration Corp.

Montana is a Canadian junior oil and gas exploration and production company focusing on the Shaunavon oil opportunities underlying its extensive land holdings in the state of Montana. In the United States the company operates through its wholly owned subsidiary, Montana Land & Exploration, Inc. Montana's common shares are listed on the TSX Venture Exchange under the trading symbol "MTZ". Additional information regarding Montana is available under Montana's profile at www.sedar.com or at Montana's website, www.montanaexplorationcorp.com.

Forward Looking Statements

Certain statements contained in this document constitute "forward-looking statements" and/or "forward-looking information" within the meaning of applicable securities laws (collectively referred to as forward-looking statements). Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "guidance", "may", "will", "should", "could", "estimate", "predict" "propose" or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements in this press release include, but are not limited to statements about the prospect for, and timing of the completion of any future debenture issuances, the arrangement and the Private Placement.

Forward-looking statements and information contained in this press release are based on our current beliefs as well as assumptions made by, and information currently available to, us. Although we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.

By their very nature, the forward-looking statements included in this press release involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to the failure to complete any future debenture issuances, the failure to complete the arrangement and the Private Placement and any failure to obtain any required regulatory approvals. The debentures are subject to Montana receiving approval from the TSXV. No assurance can be given that any of the events anticipated by the forward-looking information and statements will transpire or occur or, if any of them does, what benefits Montana will derive from them. Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Montana, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking statements contained in this press release are made as of the date of this document and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The forward-looking statements contained in this press 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: Montana Exploration Corp.

For further information on Montana and the debentures, please contact:

Montana Exploration Corp.

Charles Selby
Chairman and Chief Executive Officer
Telephone: [phone]
Email: [email protected]

Kevin Donegan
Vice President Finance and Chief Financial Officer
Telephone: [phone]
Email: [email protected]