AXEA Capital Corp.

AXEA Capital Corp.

October 18, 2010 13:39 ET

AXEA Capital Announces Extension to QT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2010) - AXEA Capital Corp. (TSX VENTURE:XEA.P) ("AXEA" or the "Company"), announced today that in contemplation of the proposed qualifying transaction of AXEA, as previously announced on November 17, 2009 and February 17, 2010, involving the acquisition of Propel Energy Corporation ("Propel") pursuant to an amalgamation agreement dated February 2, 2010 and amended on June 29, 2010 (the "Agreement"), under which Propel and 1513126 Alberta Inc. (a wholly-owned subsidiary of AXEA) will amalgamate to form a new company that will be a wholly-owned operating subsidiary of AXEA (the "Amalgamation"), the parties have mutually agreed to amend the Agreement to extend the closing date of the proposed qualifying transaction until October 25, 2010, or such other date as mutually agreed between the parties.

The parties have also agreed that, in the event that AXEA fails to satisfy the conditions for closing the Amalgamation on October 25, 2010, or such other date as mutually agreed between the parties, other than as a result of a breach of this Agreement by Propel, then AXEA shall pay to Propel no later than October 28, 2010, reasonable out of pocket fees, expenses and costs of Propel incurred in respect of the Amalgamation, including, but not limited to, legal fees, audit fees and other professional advisor fees.

The common shares of AXEA are currently halted from trading and are to remain halted from trading until completion of the qualifying transaction in accordance with the policies of the TSX-V.

The Company seeks safe harbour.

Completion of the qualifying transaction is be subject to a number of conditions, including but not limited to, TSX Venture Exchange acceptance and if applicable pursuant to TSX Venture Exchange Requirements (as such term is defined under the TSX Venture Exchange policies), majority of the minority shareholder approval. Where applicable, the qualifying transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the qualifying transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the qualifying transaction, any information released or received with respect to the qualifying transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

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 press release.

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