Quetzal Energy Ltd.
TSX VENTURE : QEI

Quetzal Energy Ltd.

October 29, 2009 09:27 ET

Quetzal Energy Ltd. Announces Closing of Second Tranche of Private Placement

TORONTO, CANADA--(Marketwire - Oct. 29, 2009) -

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Quetzal Energy Ltd. (TSX VENTURE:QEI) ("Quetzal" or the "Company") is pleased to announce that it has closed the second tranche of its previously announced non-brokered private placement financing, pursuant to which it has issued an aggregate of 25,099,660 units ("Units") at a price of $0.125 per Unit to raise aggregate gross proceeds of approximately $3,137,400. Each Unit consists of one common share of Quetzal and one share purchase warrant (a "Warrant"), each Warrant entitling the holder to acquire one additional common share of Quetzal until October 28, 2011 at an exercise price of $0.20 per share. All securities issued in connection with the second tranche of the financing are subject to a statutory hold period expiring on March 1, 2010.

The private placement remains subject to the final approval of the TSX Venture Exchange.

Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Quetzal, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas activities, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

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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