Avery Resources Inc.

Avery Resources Inc.

March 29, 2005 10:21 ET

Avery Announces C$8 Million Equity Offering


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: AVERY RESOURCES INC.

TSX VENTURE SYMBOL: ARY

MARCH 29, 2005 - 10:21 ET

Avery Announces C$8 Million Equity Offering

CALGARY, ALBERTA--(CCNMatthews - March 29, 2005) - Avery Resources Inc.
(TSX VENTURE:ARY) is pleased to announce its intention to raise up to an
aggregate of $8.0 million by way of a brokered private placement of
units in Canada and Europe.

A total of up to 16 million units will be offered for sale at a price of
$0.50 per unit. Each unit will consist of one common share and one-half
common share purchase warrant. Each whole warrant shall entitle the
holder thereof to acquire one additional common share at a price of
$0.60 per share for a period expiring 18 months from the date on which
the warrant is issued. The warrants shall contain a provision that
should the common shares of the Corporation trade on the TSX Venture
Exchange or other recognized exchange for a price of $1.00 or higher for
20 consecutive trading days at any time following the expiry of
applicable resale restrictions in Canada, the holder of such Warrants
will have 30 days, upon notice from the Corporation, in which to
exercise such warrants, and any warrants not so exercised within such
time period shall be cancelled and void.

The Corporation has retained the services of Jennings Capital Inc. and
PowerOne Capital Markets Limited and Nash Fitzwilliams Ltd. of London,
England to act as its agents on a best efforts basis for the Offering.
As consideration for acting as agents, the Corporation has agreed to pay
a due diligence fee to Jennings Capital Inc. and to pay to the Agents an
aggregate cash commission equal to seven percent of the gross proceeds
of the offering and a non-transferable agent's option to acquire that
number of common shares equal to seven percent of the number of common
shares issued pursuant to the Offering at an exercise price of $0.60 per
common share for a period of 18 months from the date of closing, except
where prohibited by regulation.

The net proceeds of the offering will be used to enable Avery to fund
ongoing seismic and exploration drilling expenditures on the
Corporation's exploration projects in Australia and the UK.

At Katandra, offshore Australia, Avery holds a 10% interest in Permit
A/P 24 operated by OMV where an evaluation well was drilled to a depth
of 1,450 metres in the Upper Vulcan formation encountering a seven metre
column of 48 degree API oil. Porosity of the reservoir rock was 22% and
the permeability was greater than two darcies. Data from this well is
assisting partners in planning for further exploration and production
potential.

In the Cooper Basin in Queensland, Australia, Avery is farming in on
2,650 square kilometers with Magellan Petroleum Australia Ltd. The area
includes highly, prospective, underexplored land that is just being
re-released for exploration.

In Northern Ireland, the operator of the South Larne project has
informed Avery that the vertical seismic profile (VSP) program is
currently being shot. One VSP has already been shot at Glenarm while the
second shot will occur shortly at the Sheddings location. Data will be
used to assist in determining potential drilling locations targeting
hydrocarbon reservoirs located 800 to 1,000 metres below the surface.

Avery Resources Inc. is an international junior oil and gas exploration
company based in Calgary, Alberta that trades on the TSX Venture
Exchange. The company is committed to growing shareholder value through
international acquisitions and exploration. Avery's primary interest is
in expanding exploration projects in oil and gas basins located in
countries that provide significant exploration upside coupled with
favourable fiscal and legal systems.

Forward looking statements: Except for statements of historical fact,
all statements in this press releases, without limitation, regarding new
projects, acquisitions, future plans and objectives are forward-looking
statements which involve risks and uncertainties. There can be no
assurance that such statements will prove to be accurate; actual results
and future events could differ materially from those anticipated in such
statements.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Avery Resources Inc.
    David Little
    Chairman & CEO
    (403) 205-2526
    (403) 263-3168 (FAX)
    or
    Avery Resources Inc.
    Bill Bale
    Investor Relations
    Toll-free: 1-866-225-2783
    (403) 263-3168 (FAX)
    Email: billbale@averyresources.com
    Website: www.averyresources.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.