Dalmac Energy Inc.
TSX VENTURE : DAL

Dalmac Energy Inc.

August 27, 2010 14:12 ET

Dalmac Completes Refinancing

EDMONTON, ALBERTA--(Marketwire - Aug. 27, 2010) - Dalmac Energy Inc. ("Dalmac") (TSX VENTURE:DAL) announces that it has completed a two part refinancing in order to pay out its previous bank debt and credit facilities. The company has secured a $3.3 million term debt facility carrying an interest rate of 24% per annum with a term of 12 months. This facility has been used to fully repay the company's previous bank debt. In addition, the company has secured a $4 million line of credit with a Canadian chartered bank. The line of credit facility is committed for a two year term, at an interest rate of 3.75% above the bank's prime lending rate. This line will provide credit for up to 90% of eligible accounts receivable and will provide the much needed margining availability for increasing accounts receivable.

To secure the above financing arrangements the Corporation's President, John Babic (through a holding company) was required to provide a $400,000 mortgage security over a piece of real property owned by Mr. Babic's company and that is currently being leased to Dalmac. As a result, Dalmac has entered into an agreement to sell to Mr. Babic and lease back the company's property in Fox Creek, Alberta at the property's appraised price of $650,000, paid by way of assumption of mortgage and a promissory note. Dalmac will have the option to buy the property back at the original purchase price within one year. This agreement will be subject to receipt of required approvals including, if required, the TSX Venture Exchange.

Neither the 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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