Longford Energy Ltd.
TSX VENTURE : LFD

June 18, 2009 11:04 ET

Longford Energy Inc. Announces $20 Million Underwritten Private Placement

CALGARY, ALBERTA--(Marketwire - June 18, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Longford Energy Inc. ("Longford" or the "Company") (TSX VENTURE:LFD) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Canaccord Capital Corporation and including GMP Securities L.P. and Haywood Securities Inc. (the "Underwriters"). The Underwriters have agreed to purchase, on an underwritten private placement basis, 50,000,000 units of the Company at a price of $0.40 per unit ("Unit") for total gross proceeds of $20,000,000 (the "Offering"). Each Unit will be comprised of one common share and one common share purchase warrant, with each common share purchase warrant entitling the holder thereof to acquire one Longford common share at a price of $0.75 for a period of 24 months following closing.

The Company intends to use the net proceeds from the financing for general corporate purposes and for the pursuit of, and satisfaction of financial commitments in respect of, an interest in a Production Sharing Contract for the exploration, development and production of hydrocarbon resources.

The Company has granted the Underwriters an option to purchase an additional 25,000,000 Units at a price of $0.40 prior to the date of closing of the Offering. In consideration for their efforts, the Underwriters will receive a cash commission equal to 6% of the gross proceeds of the Offering and be issued compensation options that will entitle them to acquire that number of Longford common shares that is equal to 6% of the units sold under the Offering for a period of twelve months from the closing date.

The Offering is expected to close on or about July 2, 2009. The 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 company actively pursuing international exploration and development opportunities.

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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