Brownstone Ventures Inc.
TSX VENTURE : BWN

Brownstone Ventures Inc.

March 05, 2010 08:00 ET

Brownstone Announces Financing

TORONTO, ONTARIO--(Marketwire - March 5, 2010) - Brownstone Ventures Inc. (TSX VENTURE:BWN) ("Brownstone"), announced today that it is proposing to complete a non-brokered financing on a best efforts basis of up to 10,000,000 units (the "Units") at a price of $0.55 per Unit for aggregate gross proceeds of a minimum of $5,500,000.

Each Unit will consist of one common share in the capital of Brownstone and one-half of one common share purchase warrant of Brownstone. Each whole common share purchase warrant will entitle the holder to purchase one common share of Brownstone at any time within 24 months (the "Warrant Term") after the closing date of the financing at an exercise price of $0.75 per share. 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 share purchase warrants will expire on the date that is 30 days following the issuance of a press release announcing the reduced Warrant Term.

Although the financing is non-brokered, Brownstone may pay a commission to agents that arrange for the sale of units equal to 7% of the gross proceeds raised under the private placement and that number of warrants (the "Agent's Warrants") equal to 8% of the number of Units sold under the private placement. Each Agent's Warrant will be exercisable for one Unit at a price of $0.55 per Unit for a period of twenty-four months from closing.

Closing of the private placement is subject to receipt of all necessary regulatory approvals. The securities issued will have a hold period expiring four months and one day from the date of closing. Proceeds from the sale of the Units will be used for general corporate purposes.

Up to 25% of the financing may be purchased by insiders of Brownstone.

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.

Contact Information