Excelsior Energy Limited

Excelsior Energy Limited

September 03, 2008 10:13 ET

Excelsior Energy Closes Financing to Further Delineate Oilsands Properties at Hangingstone

CALGARY, ALBERTA--(Marketwire - Sept. 3, 2008) -


Excelsior Energy Limited (TSX VENTURE:ELE) ("Excelsior" or the "Corporation") is pleased to announce that further to its press release dated August 6, 2008, it has now closed its private placement financing raising aggregate gross proceeds of $11,286,848. The financing consisted of 7,065,799 common shares (the "Common Shares") issued at a price of $0.29 per Common Share and 27,169,900 flow-through common shares (the "FT Common Shares") at a price of $0.34 per FT Common Share (collectively, the "Offering").

The proceeds from the Offering will be used to further delineate Excelsior's existing land base in Hangingstone, exploration and development activities, and for general working capital purposes.

The Offering was marketed through a syndicate of investment dealers led by Raymond James Ltd. and including Macquarie Capital Markets Canada Ltd., Canaccord Capital Corporation and National Bank Financial Inc.

Excelsior is also pleased to announce that it has negotiated an option to extend the completion of the earning obligation at West Surmont from March 31, 2009 to March 31, 2010 and to extend payment of any supplemental bonus payable to March 31, 2011. For further information on the West Surmont farmout agreement between a private Alberta corporation and the Corporation dated July 20, 2007, see the Corporation's news release dated July 23, 2007.

"We are pleased to secure financing to further delineate the Hangingstone asset this winter and move closer to a pilot project application next year" commented Dr. David A. Winter, Excelsior's President and Chief Executive Officer. "Re-negotiating the farmout agreement at Surmont provides the flexibility to deploy the proceeds from financing in the most effective manner."

About Excelsior Energy

Excelsior 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 in 58 contiguous sections on completion of its farm-in obligations. The Corporation also indirectly holds a 75% working interest in Blocks 16/1a and 16/6c in the North Sea and a minor interest in gas production in Alberta. Excelsior's strategy is to capture oil and gas appraisal and development opportunities where the Corporation can leverage Management's diverse international experience and field development expertise. This includes heavy oil reservoir engineering and development of complex fields.

Forward Looking Statements: This press release contains forward-looking statements. Management's assessment of future plans and operations, expected production levels, operating costs, capital expenditures, the nature of capital expenditures, methods of financing capital expenditures, future engineering reports and the timing of increases in production may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, the Corporation's actual results may differ materially from those expressed in, or implied by, the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect the Corporation's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward looking statements contained in this press release are made as at the date of this press release and the Corporation 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.

The Common Shares and FT Common Shares have not been registered under the United States Securities Act of 1933, as amended, and will not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

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

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