Drake Energy Ltd.
TSX VENTURE : DPE

October 20, 2009 18:55 ET

Drake Announces Final Closing of Private Placement

CALGARY, ALBERTA--(Marketwire - Oct. 20, 2009) - Drake Energy Ltd. (the "Corporation") (TSX VENTURE:DPE) is pleased to announce that further to its press releases dated August 5, 2009 and September 14, 2009, it has successfully completed the final tranche of its previously announced private placement (the "Private Placement"). Pursuant to the final tranche of the Private Placement, the Corporation issued 550,000 units ("Units") of the Corporation at an issue price of $0.10 per Unit, each Unit consisting of one (1) common share of the Corporation ("Common Share") and one (1) Warrant; and (ii) 207,333 units ("Flow Through Units") of the Corporation at an issue price of $0.12 per Flow Through Unit, each Flow Through Unit consisting of one (1) Common Share issued on a "flow through" basis within the meaning of the Income Tax Act (Canada) and one (1) Warrant, for total gross proceeds of $79,879.96. Each Warrant will entitle the holder thereof to puchase on (1) common Share at a price of $0.15 for a period of nine (9) months from date of closing of the Private Placement. In total, and pursuant to the Private Placement, the Corporation raised gross proceeds of $436,011.92.

Broker's fees in the amount of $4,790.40, equal to 8 percent of the gross proceeds placed by certain arm's length brokerage firms to the Corporation (the "Brokers") were paid by the Corporation to such Brokers. In addition, the Brokers were issued 55,733 Broker's warrants ("Broker's Warrants"), such number of Broker's Warrants equal to 10 percent of the number of Units and Flow Through Units placed by the Brokers with respect to the Private Placement. Each Broker's Warrant entitles the holder thereof to purchase one Unit at a price of $0.10 for a period of nine (9) months from the closing of the Private Placement. The Broker's Fee is equal to 1 percent of the gross proceeds of the full Private Placement.

The securities issued pursuant to the final tranche of the Private Placement are subject to a hold period under applicable securities laws until February 21, 2010.

The Corporation intends to use the proceeds from the Private Placement to fund a portion of its light crude oil development drilling and workover programs at Enchant and Sousa. Over the past two years, the Corporation has been developing these core areas and drilling opportunities.

Drake Energy Ltd. is active in oil and gas exploration and development in Alberta and Saskatchewan. Headquartered in Calgary, Alberta, Canada, the Corporation is publicly traded on the Exchange under the stock symbol DPE.V.

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.

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