TORONTO, ONTARIO -- 07/03/08 --
Exile Resources Inc. (TSX VENTURE: ERI) ("ERI") announced today that it proposes to complete a non-brokered offering of up to 26,153,847 units ("Units") at $0.13 per Unit for aggregate gross proceeds of approximately $3,400,000. Each Unit will consist of one common share of ERI and one-half of one share purchase warrant. Each whole share purchase warrant will entitle the holder thereof to acquire one additional common share of ERI for a period of 24 months at an exercise price of $0.26 per share, provided that if after six months has elapsed from the first closing date, the closing price of the common shares of ERI for any 20 consecutive trading days exceeds $0.40, ERI may accelerate the expiry date to the date which is 30 days following the date of mailing of written notice of the accelerated expiry date to holders of the share purchase warrants.
Insiders of ERI may purchase up to 25% of the Units issued in the private placement.
The private placement remains subject to the approval of the TSX Venture Exchange.
The net proceeds of the private placement will be used for engineering evaluation of the re-entry and testing programme for the well on ERI's Akepo Licence and general corporate purposes. As the cost of re-entering and testing the well is anticipated to exceed the net proceeds of the private placement, ERI is continuing to explore other financing initiatives.
Concurrent with the closing of the private placement the ERI reported that it has granted an aggregate of 1,525,000 stock options to certain of its directors and management, each such option entitling the holder thereof to acquire one common share of the Company at an exercise price of $0.15 until July 3rd 2013. Subject to regulatory approval, all of these stock options shall vest immediately.
About Exile Resources Inc.
Exile Resources Inc. is an oil and gas exploration company advancing the development of the Akepo Oilfield in the shallow water Niger Delta, Nigeria. The Company is also pursuing additional oil and gas, exploration and development opportunities in Africa. Exile Resources Inc. has 35,828,656 issued and outstanding common shares. Please visit Exile Resource's web site for further information: www.exileresources.com.
Forward-Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Exile Resources Inc. including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Exile Resources Inc.
Graham C. Warren
CFO
(416) 362-5772
Email: Graham.Warren@exileresources.com
Exile Resources Inc.
Tony Henshaw
President & CEO
(44) 20-7793-2592
Email: Tony.Henshaw@exileresources.com
Website: www.exileresources.com
CHF Investor Relations
Cathy Hume
CEO
(416) 868-1079, ext. 231
Email: cathy@chfir.com
