Altima Resources Ltd.
TSX VENTURE : ARH
FRANKFURT : AKC

Altima Resources Ltd.

May 26, 2011 18:22 ET

Altima Negotiates Equity Financing for Up to $6,000,000

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 26, 2011) -

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

Altima Resources Ltd. (TSX VENTURE:ARH)(FRANKFURT:AKC) ("Altima" or the "Company") announces that it has negotiated a private placement for gross proceeds of up to $6,000,000, subject to acceptance by the TSX Venture Exchange. These funds will be raised by the Company issuing:

  • up to a maximum of 80,000,000 Flow-Through Units (the "FT Units") at a price of $0.05 per FT Unit for gross proceeds of up to $4,000,000 (the "FT Financing"), each FT Unit consisting of one flow-through common share and one share purchase warrant, each warrant entitling the holder to purchase one additional non flow-through common share, exercisable for a period of one year from the date of issuance at a price of $0.10 per share; and
  • from the balance of proceeds raised, the Company will issue Non Flow Through Units (the "NFT Units") at a price of $0.05 per NFT Unit (the "NFT Financing"), each NFT Unit consisting of one non flow-through common share and one share purchase warrant, each warrant entitling the holder thereof to purchase one additional non flow-through common share, exercisable for a period of two years from the date of issuance at a price of $0.10 per share.

Proceeds from the FT Financing will be used for new exploratory drilling of multiple formations defined by 3D seismic in the deeper multi-zone gas and liquids rich targets of the Company's Chambers-Ferrier area properties, which lie immediately west of the multiple zone producing pools in the Ferrier Field, Alberta. Drilling will preferably take place near current pipeline infrastructure to help reduce cost and facilitate early production. The exploration work conducted will qualify as Canadian Exploration Expense for the purposes of the Income Tax Act (Canada), which will then be renounced by the Company to the placees.

Proceeds from the NFT Financing will be used for general working capital purposes and in part towards the recompletion and stimulation of a previously productive well produced through the Chambers Conoco Phillips gathering system and plant.

The Company may pay finders fees in connection with the private placement in accordance with TSX Venture Exchange policies.

ON BEHALF OF THE BOARD

Richard Switzer, President and CEO

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.

This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.

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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