Brownstone Ventures Inc.
TSX VENTURE : BWN

Brownstone Ventures Inc.

April 13, 2010 16:46 ET

Brownstone Announces Closing of Private Placement to Raise $11,000,000

TORONTO, ONTARIO--(Marketwire - April 13, 2010) - Brownstone Ventures Inc. (TSX VENTURE:BWN) ("Brownstone" or the "Company") is pleased to announce that it has closed its previously announced non-brokered private placement financing, pursuant to which it has issued an aggregate of 20,000,000 units ("Units") at a price of $0.55 per Unit to raise aggregate gross proceeds of $11,000,000. Each Unit consists of one common share of Brownstone and one-half of one share purchase warrant (each whole such share purchase warrant, a "Warrant"), each Warrant entitling the holder to acquire one additional common share of Brownstone until April 13, 2012 (the "Warrant Term") at an exercise price of $0.75 per share, provided however that if, following the expiry of the four month hold period, the closing price of Brownstone's common shares exceeds $1.25 for 20 consecutive business days, then the Warrant Term shall be automatically reduced and the Warrants will expire on the date that is 30 days following the issuance of a press release announcing the reduced Warrant Term. All securities issued in the financing are subject to a statutory hold period expiring on August 14, 2010. Insiders of the Company subscribed for an aggregate of 2,904,220 Units in the financing.

In connection with the private placement, Brownstone has paid finder's fees in the aggregate amount of $718,833.50 to certain finders assisting in the offering (representing 7% of the gross proceeds raised by such finders), and issued an aggregate of 1,493,680 compensation warrants ("Compensation Warrants") to such finders (representing 8% of the aggregate number of Units sold by such finders). Each Compensation Warrant entitles the holder to acquire one Unit at an exercise price of $0.55 per Unit until April 13, 2012. 

The private placement remains subject to the final approval of the TSX Venture Exchange. 

About Brownstone

Brownstone Ventures Inc. is a Canadian-based, energy focused investment company with equity interests and direct interests in oil and gas exploration projects, including working interests in almost 300,000 acres in the Piceance/Uinta Basins of Colorado and Utah; 295km2 in the Assam/Arakan Basin, Northeast India; 253,000 acres in Rio Negro, Argentina; interests in several projects in Brazil; a 50% interest in approximately 300,000 hectares in the Quėbec Lowlands; a 15% participating interest in two off-shore Israel oil and gas blocks; and is earning interests (14-35%) in 4 Colombian blocks in the Llanos basin. For additional information, please see Brownstone's website: www.brownstoneventures.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 Brownstone, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas activities, 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.

Neither 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.

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