Reef Resources Ltd.
TSX VENTURE : REE

Reef Resources Ltd.

July 28, 2009 17:51 ET

Reef Resources Ltd.: Press Release

REEF RESOURCES LTD. ANNOUNCES: a) APPLICATION TO POSTPONE THE NEXT ANNUAL GENERAL MEETING b) EXTENSION OF CLOSING DATE FOR PRIVATE PLACEMENT

CALGARY, ALBERTA--(Marketwire - July 28, 2009) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES.

REEF RESOURCES LTD. ("Reef" or the "Corporation"), (TSX VENTURE:REE) announces:

a) APPLICATION TO POSTPONE THE NEXT ANNUAL GENERAL MEETING An application has been made at the Court of Queen's Bench in Calgary, Alberta today for an Order postponing the next annual general meeting ("AGM") of the shareholders of the Corporation to a date no later than May 27, 2010.

The management of Reef is in the process of pursuing a joint venture, working interest partner or other alternative business arrangement(s) with respect to its south-western Ontario assets and is pursuing opportunities in western Canada. The Corporation is also seeking opportunities for merger or acquisition and is in the process of financial restructuring. The Corporation intends to seek approval of these efforts at an AGM in early 2010.

The directors and management of the Corporation believe that it would be in the best interest of Reef and its shareholders to postpone the AGM in order to make valuable use of the shareholders time and limited resources of the Corporation until such time as there is a major transaction for which shareholder approval is required.

As part of the court application, the Corporation will seek an order permitting this press release to serve as sufficient notice to the shareholders.

Questions may be directed to Arnie Hansen, President & CEO of Reef or to Philip Carson at Miller Thomson LLP at 403-2982403. Any shareholder may receive, upon request to Miller Thomson LLP, a copy of the Originating Notice and supporting Affidavit.

b) EXTENSION OF CLOSING DATE FOR PRIVATE PLACEMENT Reef also announces that it is extending the closing of the private placement previously announced on June 8, 2009 to September 30, 2009. The terms of the financing are a non-brokered private placement of up to 15,000,000 units of the Company ("Units") at an issue price of $0.05 per Unit for gross proceeds of up to $750,000 (the "Offering").

Each Unit will be comprised of 0.5 of one flow-through common share of the Company ("Flow Through Common Share") and 0.5 of one non flow through ("Common Share") plus one half share purchase warrant ("Warrant"). Each whole share purchase Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.10 per share until the date that is twelve months from date of closing of the Offering. A finder's fee of cash equal to up to 10% of the gross proceeds of the Offering and a number of Warrants equal to up to 10% of the number of Units sold pursuant to the Offering may be paid to certain arm's length parties in connection with the Offering.

Closing of the offering is expected to occur on or about September 30, 2009. Multiple earlier closings will be at the Company's discretion.

About Reef Resources Ltd.

Reef was formed to participate in the exploration, development and production of conventional crude oil and natural gas reserves in Ontario, Alberta and Saskatchewan. The Company's strategy is to build shareholder value through internally generated exploration and development drilling as well as through selective acquisitions and mergers.

Forward Looking Statements - This news release contains certain forward-looking statements, which include assumptions with respect to raising funds and future capital expenditures. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company 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.

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.

Contact Information

  • Reef Resources Ltd.
    Arnie Hansen
    President & CEO
    (403) 251-9447 Ext 224
    (403) 251-9553 (FAX)
    or
    Reef Resources Ltd.
    Larry Olson
    V.P. Finance
    (250) 490-3378
    (403) 251-9553 (FAX)