Excelsior Energy Limited

Excelsior Energy Limited

December 12, 2007 15:27 ET

Excelsior Energy Closes $7.2 Million Private Placement

CALGARY, ALBERTA--(Marketwire - Dec. 12, 2007) -


Excelsior Energy Limited ("Excelsior" or the "Corporation") (TSX VENTURE:ELE) is pleased to announce that further to its press releases dated November 20, 2007 it has now closed the first tranche of its private placement financing raising aggregate gross proceeds of $7,217,600. The first tranche consisted of 11,104,000 common shares issued on a "flow-through" basis ("Flow-Through Shares") at a price of $0.65 per Flow-Through Share. As previously disclosed Excelsior had increased the private placement by an additional 2,819,200 common shares (on a non flow-through basis) at a price of $0.52 per common share. Excelsior expects to close this additional portion of the private placement on or about the first week of January 2008. The Flow-Through Shares issued in the private placement are subject to a hold period of 4 months and one day expiring April 13, 2008.

Proceeds of the first tranche will be used to fund Excelsior's ongoing exploration and development activities at the Corporation's West Surmont property located in northern Alberta.

"With the closing of this flow-through financing our drilling programs at Hangingstone and West Surmont are fully funded with working capital of over $16 million" commented Dr. David Winter Excelsior's CEO and President, "we have started our operations at Hangingstone and look forward to receiving early drilling results."

The private placement was conducted by a syndicate of investment dealers, led by Canaccord Capital Corporation and including Macquarie Capital Markets Canada Ltd. (formerly Orion Securities Inc.) and Blackmont Capital Inc. (collectively, the "Agents"). The Corporation paid the Agents a cash commission of 6% (3% in the case of subscribers on the President's list) and issued to the agents an aggregate of 656,190 broker warrants. Each broker warrant entitles the holder to acquire one common share in the capital of the Corporation at a price of $0.75 per common share at any time prior to 5:00 p.m. (Mountain Standard Time) on December 12, 2008.

About Excelsior Energy:

The Corporation is active in oil sands exploration and appraisal in the Hangingstone and West Surmont areas near Fort McMurray, Alberta and will hold a 75% working interest as operator in 58 contiguous sections on completion of its farm-in obligations. The Corporation also holds a 100% working interest in Blocks 16/1a and 16/6c in the UK North Sea and a minor interest in gas production in Alberta. The Corporation's strategy is to capture oil and gas appraisal and development opportunities to leverage management's diverse international experience and field development expertise. This includes heavy oil reservoir engineering and development of geologically complex fields. The scale of the oil sands resource opportunity in Alberta complements Excelsior's international portfolio and strategy.

The Flow-Through Shares have not been registered under the United States Securities Act of 1933, as amended, and were not offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

Forward Looking Statements

Certain information set forth in this press release, including a discussion of future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources, as well as risks inherent in operating in foreign jurisdictions, including varying judicial or administrative guidance on interpreting rules and regulations and a higher degree of discretion on the part of governmental authorities. Actual results, performance or achievement could differ materially from those expressed in or implied by these forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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