Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.

March 25, 2010 09:20 ET

Americas Petrogas Updates Private Placement Financing

CALGARY, ALBERTA--(Marketwire - March 25, 2010) -

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

Americas Petrogas Inc. (the "Corporation") (TSX VENTURE:BOE) announces that further to its press release of March 12, 2010 wherein it announced an underwritten bought deal private placement (the "Underwritten Offering") in the amount of $7,000,020, it intends to issue, on a non-brokered basis, a further 7,407,410 common shares at $0.81 per share for additional gross proceeds of approximately $6,000,000 (the "Non-Brokered Offering"). A finder's fee of up to 6% may be paid in connection with all or a portion of the Non-Brokered Offering in accordance with the policies of the TSX Venture Exchange and applicable securities laws. 

The Corporation has granted the Underwriters the option, but not the obligation, exercisable at any time prior to the closing of the Underwritten Offering, to increase the size of the Underwritten Offering by purchasing up to $3,000,000 in common shares of the Corporation (the "Underwriters' Option"). If the Underwriters' Option is exercised in full, in respect of the Underwritten Offering the Corporation will issue an aggregate of 12,345,700 common shares at $0.81 per common share for gross proceeds of $10,000,020, before commissions and costs of issue. The Underwritten Offering is subject to completion of all applicable due diligence by the Underwriters.

The Underwritten Offering and the Non-Brokered Offering (collectively, the "Offerings") are currently scheduled to close by March 31, 2010. Upon closing the Offerings (assuming the full exercise of the Underwriters' Option), the Corporation is expected to issue an aggregate of 19,753,110 common shares for gross proceeds before commissions, finders fees and issue costs of approximately $16,000,000. The proceeds received by the Corporation from the Offerings will be used by the Corporation for the ongoing exploration and development of its Argentinean oil & gas properties, to advance the Corporation's Bayovar potash project located in Peru, and for general corporate purposes.

The Offerings are subject to all necessary regulatory approvals including the conditional approval of the TSX Venture Exchange. The common shares to be issued pursuant to the Offerings will be subject to a four month hold period under applicable securities laws.

The common shares offered have not been registered under the U.S. Securities Act of 1933 as amended or any state securities laws, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Americas Petrogas Inc.

Americas Petrogas Inc. is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". The Corporation has oil and gas exploration, development and production activities in Argentina. As well, in Peru, the Corporation is developing a surface potash brine reservoir and evaporite deposit at Bayovar in the Sechura Desert of Northwest Peru.

Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. These statements include references to the anticipated size of the Offerings and to the scheduled closing date of the Offerings. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. In particular, there is no assurance that the Offerings will be of the size set out in this press release or that the Offerings will close when currently scheduled or at all. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels and timing of activity and achievements to differ materially from those expressed or implied by such information.

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 THE RELEASE.

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