Candax Energy Inc.

Candax Energy Inc.

May 19, 2010 17:17 ET

Candax Finalizes Subordinated Working Capital Loan with Geofinance N.V.

TORONTO, ONTARIO--(Marketwire - May 19, 2010) -


Candax Energy Inc. ("Candax") (TSX:CAX) is pleased to announce that the documentation for the previously announced € 2,000,000 (C$2,600,000) subordinated working capital loan (the "Shareholder Loan") with Geofinance N.V. ("Geofinance") has been executed.

The Shareholder Loan is available immediately for working capital requirements of Candax and utilization will be subject to Geofinance's approval. The Shareholder Loan has an interest rate of 3.5% per annum and a maturity date of July 15, 2014. The Shareholder Loan is subordinated to the Amendment and Restatement Agreement provided by Bank of Scotland plc and repayments are governed by a subordination agreement entered into by Candax, Geofinance and Bank of Scotland plc.

About Candax Energy Inc.

Candax Energy Inc. is an international energy company with its head office in Toronto and offices in London, Tunis, and Madagascar. The Candax group is engaged in exploration and the production of oil and gas and power generation in Tunisia and holds an interest in an exploration permit in Madagascar.

This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of Management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to risks associated with the oil and gas industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Candax Energy Inc. to obtain all permits, consents or authorizations required for its operations and activities; and health safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Candax Energy Inc. to fund the capital and operating expenses necessary to achieve the business objectives of Candax Energy Inc., the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Candax Energy Inc. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Candax Energy Inc. should not place undue reliance on these forward-looking statements. Statements in relation to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future.

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