Canadian Oil Recovery & Remediation Enterprises Ltd.

Canadian Oil Recovery & Remediation Enterprises Ltd.

June 17, 2010 08:30 ET

CORRE Announces $5 Million Debenture Conversions and Release of Additional Financing Proceeds

TORONTO, ONTARIO--(Marketwire - June 17, 2010) - Canadian Oil Recovery & Remediation Enterprises Ltd. (TSX VENTURE:CVR) ("CORRE" or the "Company") is pleased to announce that, following a detailed review of CORRE's five-year Business and Financial Plan by Al-Najah Advanced Technology Co. Ltd. ("NAT"), NAT has confirmed its acceptance of this plan and has exercised its right to convert the full amount of its previously issued $4,250,000 secured convertible debenture (the "NAT Debenture") into common shares of CORRE. As part of the NAT Debenture conversion, NAT will now release to CORRE $2,850,000 of escrowed funds and the full principal amount of the NAT Debenture will convert into 21,250,000 new common shares of CORRE at a price of $0.20 per share. NAT is a private company based in Jeddah, Kingdom of Saudi Arabia whose focus is on investments in technology and technology-based ventures and companies.

CORRE is also pleased to report the automatic conversion, simultaneous with the NAT Debenture conversion, of its previously issued $750,000 subordinate, secured debenture (the "Subordinate Debenture"), which is held by a director of the Company. The Subordinate Debenture will convert into 3,750,000 new common shares of CORRE at a price of $0.20 per share.

Mr. Alex Gress, Senior Vice-President of CORRE, commented: "We are extremely pleased with the conversion of the debentures and availability of new capital. We would like to thank NAT for their support and confidence in our business plan, management team and board of directors. With very volatile capital markets, CORRE is happy to have in place a long-term and strategic equity financing plan as we focus on securing our first remediation contracts."

In addition to acquiring shares under the NAT Debenture conversion, NAT is also eligible to exercise, at its option, up to 21,250,000 warrants to purchase additional common shares of CORRE at an exercise price of $0.20 per share. Should NAT fully exercise the warrants, NAT would own in aggregate of 42,500,000 CORRE common shares, representing approximately 43% of CORRE's issued and outstanding common shares on a partially-diluted basis. In addition, the holder of the Subordinate Debenture also holds share purchase warrants that are exercisable into an additional 3,750,000 common shares of CORRE at an exercise price of $0.20 per share.

For further details concerning the financing and all related matters and ancillary agreements, please refer to our press releases date June 16, July 16, August 14, October 7, November 17, 2009 and May 17, 2010.


CORRE is a Canadian company that utilizes its proprietary Advanced Recovery Equipment Systems ("ARES") for sludge treatment, soil remediation and oil recovery. As part of ARES, CORRE owns exclusive licenses to use innovative technologies and has developed proprietary processes for oil recovery, sludge and drill cuttings treatment and remediation of oil-contaminated sites. CORRE is deploying ARES in the oil producing countries of the Middle East and other regions where there is substantial demand for its services.

Through strategic operating partnerships with multi-national oil services companies, CORRE is significantly expanding its line of oil services across the Middle East and North Africa to include waste management, oil storage and oil tankers tank cleaning, water treatment, and oil and gas engineering and project management.

Forward Looking Statements

Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Except as required by applicable securities requirements, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance 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 the release.

Contact Information