Cinch Energy Corp.
TSX : CNH

Cinch Energy Corp.

February 21, 2007 23:59 ET

Cinch Energy Completes $10 Million Flow-Through Share Financing

CALGARY, ALBERTA--(Marketwire - Feb. 21) - Cinch Energy Corp. (TSX:CNH) ("Cinch") is pleased to announce that it has closed its previously announced, bought deal financing for gross proceeds of $10.0 million on a private placement basis through a syndicate of underwriters led by Canaccord Capital Corporation and including National Bank Financial Inc., Haywood Securities Inc., and Sprott Securities Inc. Cinch issued a total of 7,812,500 common shares on a "flow-through" basis ("Flow-Through Shares") at an issue price of $1.28 per Flow-Through Share.

Proceeds from the offering will be used to fund Cinch's exploration and development program. Cinch will incur Canadian exploration expenses in the amount of the subscription proceeds raised from the issuance of the Flow-Through Shares, to be renounced effective on or before December 31, 2007 to subscribers of the Flow-Through Shares.

Forward Looking Statements

Statements throughout this release that are not historical facts may be considered to be "forward looking statements". These forward looking statements sometimes include words to the effect that management believes or expects a stated condition or result. All estimates and statements that describe the Company's objectives, goals, or future plans are forward looking statements, including management's assessment of future plans and timing thereof and expectations for anticipated use of proceeds from financings. Since forward looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to any number of factors, including, delays resulting from or inability to obtain required regulatory approvals and the ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results is included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), and at the Company's website (www.cinchenergy.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does 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 may be required by applicable securities laws.

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