Arcan Resources Ltd.
TSX VENTURE : ARN

Arcan Resources Ltd.

February 13, 2015 18:42 ET

Arcan Announces Completion of Convertible Debenture Exchange Transaction

CALGARY, ALBERTA--(Marketwired - Feb. 13, 2015) -

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

Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan" or the "Company") is pleased to announce that following the close of markets today, the exchange of its $86.25 million 6.25% convertible unsecured subordinated debentures due February 28, 2016 (the "2016 Debentures") and $85.0 million 6.50% convertible unsecured subordinated debentures due October 31, 2018 (the "2018 Debentures" and together with the 2016 Debentures, the "Debentures") into an aggregate of 1,141,666,667 common shares (the "Exchange Shares") of Arcan (the "Exchange Transaction") was completed.

As announced on February 2, 2015, the Exchange Transaction was approved at the meeting of the holders of the 2016 Debentures and 2018 Debentures ("Debentureholders") of Arcan on February 2, 2015 by 85.10% of the votes cast by the Debentureholders.

The Exchange Shares and interest to which Debentureholders are entitled to pursuant to the Exchange Transaction were delivered to CDS & Co. at closing and CDS & Co. and the applicable participants will distribute the Exchange Shares through the book-entry only system to the beneficial owners of Debentures. Debentureholders will receive approximately 6,667 Exchange Shares for every $1,000 of principal amount of Debentures along with all accrued and unpaid interest to and including today's date.

The Exchange Shares will commence trading on the TSX Venture Exchange on February 17, 2015 concurrently with the de-listing of the 2016 Debentures and 2018 Debentures.

About Arcan Resources Ltd.

Arcan Resources Ltd. is an Alberta, Canada corporation that is principally engaged in the exploration, development and acquisition of petroleum and natural gas located in the Western Canada Sedimentary Basin. Additional information about the Company, including the Company's annual information form for the year ended December 31, 2013, is available under Arcan's profile on SEDAR at www.sedar.com.

This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of the word ''will'' and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains forward-looking information and statements pertaining to, among other things, the listing of the common shares pursuant to the Exchange Transaction and the de-listing of the 2016 Debentures and the 2018 Debentures from the TSX Venture Exchange (the "TSXV").

Arcan believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable at this time, including the Company's assumptions that listing and de-listing will occur in a manner consistent with its correspondence and discussions with the TSXV and that the Company will continue to meet the listing criteria of the TSXV, but no assurance can be given that these factors, expectations and assumptions will prove to be correct.

The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation: the listing of the common shares may be delayed or not occur on the manner and terms currently contemplated by the Company for reasons currently unforeseen by the Company; the Company may have difficulties meeting the listing criteria of the TSXV in the future; the 2016 Debentures and the 2018 Debentures may not be delisted, or the Exchange Shares listed, on the timeline currently anticipated; and certain other risks detailed from time to time in Arcan's public disclosure documents including, without limitation, those risks identified in this press release, and in Arcan's annual information form, copies of which are available under Arcan's profile on SEDAR at www.sedar.com.

The forward-looking information and statements contained in this press release speak only as of the date of this press release, and Arcan does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable 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.

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