Longford Energy Inc.
TSX VENTURE : LFD

Longford Energy Inc.

March 30, 2010 07:00 ET

Longford Energy Closes Previously Announced Financing With Significant Investor and Places $1.5 Million Additional Financing With Canadian Investors

CALGARY, ALBERTA--(Marketwire - March 30, 2010) -

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Longford Energy Inc. ("Longford" or the "Company") (TSX VENTURE:LFD) is pleased to announce that it has closed its previously announced financing with Quantum Partners Ltd., a private investment fund managed by Soros Fund Management LLC, ("Quantum") whereby Quantum has purchased 19,000,000 units of the Company at a price of $0.30 per unit ("Unit") for total gross proceeds of $5,700,000 (the "Quantum Offering"). Each Unit was comprised of one common share and one-half of one share purchase warrant, with each share purchase warrant entitling the holder thereof to acquire one Longford common share at a price of $0.65 at any time prior to September 29, 2011. Quantum now holds approximately 14% of the issued and outstanding common shares of the Company.

Longford is also pleased to announce that a number of key Canadian, Longford shareholders have agreed to purchase an aggregate of 5,000,000 Units from the Company (the "Canadian Offering") on the same terms as the Quantum Offering. The Units will be sold at a price of $0.30 per Unit for total gross proceeds of $1,500,000. Each Unit will be comprised of one common share and one-half of one share purchase warrant, with each share purchase warrant entitling the holder thereof to acquire one Longford common share at a price of $0.65 within 18 months of closing of the financing.

The Company intends to use the net proceeds from the financings to further the exploration and development of the Chia Surkh block in the Kurdistan Region of Iraq and for general corporate purposes.

If the closing price of the common shares of the Company on the TSX Venture Exchange is greater than $1.00 for 20 or more consecutive trading days, the Company may give notice to the holders of the share purchase warrants that the expiry date for exercise of the share purchase warrants has been accelerated and the share purchase warrants will expire on the 20th calendar day following the date such notice is mailed.

The common shares, share purchase warrants and the common shares issuable upon the exercise of the share purchase warrants issued in connection with the Quantum Offering will be subject to a hold period that expires on July 30, 2010. The securities issuable on the Canadian offering will be subject to a hold period that expires four months and one day following closing of the Canadian Offering. Both the Quantum Offering and the Canadian Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. 

About Longford Energy Inc.

Longford Energy Inc., is a junior Canadian oil and gas exploration and production company. Longford has acquired a significant interest in the Chia Surkh Block Production Sharing Contract in the Kurdistan Region – Iraq. The Block offers a field development opportunity and multiple exploration prospects.

Regulatory Statements

This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the terms of the financing, the planned use of proceeds, and receipt of all regulatory approvals. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of exploration activities; regulatory risks; risks inherent in foreign operations; and other risks of the oil and gas industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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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