Canex Energy Inc.

Canex Energy Inc.

March 17, 2005 15:00 ET

Canex Announces Bought Deal Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANEX ENERGY INC.

TSX VENTURE SYMBOL: CXO

MARCH 17, 2005 - 15:00 ET

Canex Announces Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - March 17, 2005) - Canex Energy Inc.
(Canex) (TSX VENTURE:CXO) is pleased to announce today that it has
entered into an agreement to issue, on a "bought deal" private placement
basis, up to 3,750,000 common shares at a price of $2.70 per share for
gross proceeds of up to $10,125,000. The private placement is being led
by Tristone Capital and includes First Associates Investments Inc. Canex
has granted the underwriters an option, exercisable in whole or in part,
no later than 48 hours prior to closing of the private placement, to
purchase an additional 750,000 common shares of Canex at the same
offering price of $2.70 per common share.

The net proceeds of the share offering will be used to fund the
continued exploration and development of the Company's oil and natural
gas properties.

Closing is subject to normal closing conditions including obtaining
required regulatory approvals and is scheduled for April 7, 2005.

Canex Energy Inc. is a Calgary-based, junior resource company engaged in
the exploration, development and production of natural gas and oil.

This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
Common Shares will not be and have not been registered under the United
States Securities Act of 1933 and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Canex Energy Inc
    Stephen Kapusta
    President & CEO
    (403) 263-3232
    Email: skapusta@canexenergy.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.