Ceiba Energy Services Inc. Announces Bought Deal Private Placement for Gross Proceeds of C$7,998,000

CALGARY, ALBERTA--(Marketwired - March 24, 2014) -

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Ceiba Energy Services Inc. ("Ceiba" or the "Company") (TSX VENTURE:CEB) announced today that the Company has entered into an agreement under which a syndicate led by Clarus Securities Inc. and including Canaccord Genuity Corp., Scotia Capital Inc. and Jennings Capital Inc. (collectively, the "Underwriters") has agreed to buy 18,600,000 special warrants of the Company (the "Special Warrants") at a price of C$0.43 per Special Warrant (the "Issue Price") for gross proceeds to the Company of C$7,998,000 (the "Offering"). The Company has also granted the Underwriters an option (the "Option") to purchase up to an additional 2,790,000 Special Warrants from the Company on the same terms, which option is exercisable at any time up to 48 hours prior to the closing of the Offering.

Each Special Warrant will be exercisable at any time after the closing of the Offering, for no additional consideration, to acquire one common share of the Company (a "Common Share"). All unexercised Special Warrants will be deemed to be exercised, for no additional consideration, upon the earlier of: (a) the date that is four months and one day following the Closing Date (as defined below), and (b) the fifth business day after a receipt or deemed receipt, as applicable, is issued for a (final) prospectus (the "Qualification Prospectus") by the securities regulatory authorities in each of Alberta, British Columbia, Manitoba and Ontario for distribution of the Common Shares issuable upon exercise of the Special Warrants. The Company has agreed to use its commercially reasonable efforts to obtain such receipt.

The private placement is expected to close on or about April 15, 2014 (the "Closing Date").

The gross proceeds raised from the Offering will be C$7,998,000 (C$9,197,700 if the Option is exercised in full). The Offering is subject to the approval of the TSX Venture Exchange. The Special Warrants will be offered in the provinces of Alberta, British Columbia, Manitoba and Ontario, and in such other jurisdictions, including the United States and in those jurisdictions outside of Canada which are agreed to by the Company and the Underwriters, where the Special Warrants can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements.

The Underwriters shall be paid a cash fee equal to 6% of the gross proceeds of the Offering.

Ceiba intends to use the net proceeds of the Offering for corporate development and general working capital purposes.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

About Ceiba

Ceiba provides specialized services to the energy sector, specifically to companies involved in the exploration, extraction and production of oil and natural gas in under serviced market space throughout Western Canada. Ceiba develops and constructs facilities in proximity to its customers to provide treatment of crude oil emulsion, terminalling, storage and marketing of oil and disposal of production water.

Reader Advisory

Neither 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 the accuracy of this release.

Please visit Ceiba's website at: www.ceibaenergy.com

Forward-looking statements

Certain statements made herein may constitute forward-looking statements. These statements relate to future events or the future economic performance of Ceiba and carry known and unknown risks, uncertainties and other factors that may appreciably affect their results, economic performance or accomplishments when considered in light of the content or implications to statements made by Ceiba. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Ceiba does not intend and undertakes no obligation to update these forward-looking statements, except as required under applicable securities laws.