Cinch Energy Corp.
TSX : CNH

Cinch Energy Corp.

January 29, 2007 23:59 ET

Cinch Energy Corp. Announces Flow-Through Share Private Placement

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

CALGARY, ALBERTA--(Marketwire - Jan. 29) - Cinch Energy Corp. (TSX:CNH) ("Cinch" or "the Company") is pleased to announce that it has entered into a financing agreement with a syndicate of underwriters, led by Canaccord Capital Corporation and including National Bank Financial, Haywood Securities Inc., and Sprott Securities Inc., to issue on an underwritten private placement basis 7,812,500 common shares issued on a "flow-through" basis ("Flow-Through Shares") at an issue price of $1.28 per Flow-Through Share for aggregate gross proceeds of $10 million.

Proceeds from the offering will be used to fund Cinch's exploration program and Cinch will agree to 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.

The offering is anticipated to close on or about February 21, 2007 and is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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 operations, anticipated closing date, 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.

Contact Information