Arrow Energy Ltd.

Arrow Energy Ltd.

November 10, 2008 17:21 ET

Arrow Announces Completion of Private Placement

EDMONTON, ALBERTA--(Marketwire - Nov. 10, 2008) - Arrow Energy Ltd. (TSX VENTURE:AOF) ("Arrow") is pleased to announce that it has received final acceptance from the TSX Venture Exchange for a non-brokered private placement of 3,250,000 units ("Units") at a price of $0.20 per Unit for total proceeds of $650,000 (the "Private Placement"). Each Unit is comprised of one (1) common share on a flow-through tax basis and one (1) common share purchase warrant ("Warrant"). Each Warrant entitles the holder to purchase one (1) additional common share of Arrow at a price of $0.20 per common share for a period of two (2) years following the date of closing.

Arrow intends to use the proceeds from the Private Placement for general working capital purposes, for strategic acquisitions and for exploration and development activity on its oil and natural gas exploration projects.

Pursuant to Policy 5.9 of the TSX Venture Exchange and Multilateral Instrument 61-101 ("MI 61-101"), the Private Placement may be classified as a "related party transaction" as certain directors and officers of Arrow subscribed for Units. Arrow has determined that under MI 61-101 an exemption from the formal valuation requirements is available. In particular, Arrow has determined that the exemption set out in paragraphs (b) and (c) in section 5.5 of MI 61-101 are applicable. In addition, in reviewing the minority shareholder approval exemptions, the independent directors determined that the exemption set out in paragraph (b) in section 5.7 of MI 61-101 is applicable.

The securities issued pursuant the Private Placement are subject to a hold period expiring on March 6, 2009.

Arrow is a Calgary-based junior resource company engaged in the exploration, development and production of natural gas and oil primarily in the Peavine/Dawson, Westlock, and Redwater/Jeffrey areas of Alberta.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Arrow Energy Ltd.
    Richard N. Edgar
    (403) 237-9996 or Toll Free: 1-866-528-9996
    (403) 264-0416 (FAX)