Cinch Energy Corp.
TSX : CNH

Cinch Energy Corp.

August 27, 2009 15:18 ET

Cinch Energy Corp. Announces Closing of Flow-Through Share Private Placement

CALGARY, ALBERTA--(Marketwire - Aug. 27, 2009) - Cinch Energy Corp. ("Cinch" or the "Company") (TSX:CNH) announces that it has closed its previously announced non-brokered private placement of 3,211,900 common shares on a "flow-through" basis ("Flow-Through Shares") at an issue price of $0.85 per Flow-Through Share for aggregate gross proceeds of $2,730,115.

Proceeds from the offering will be used to fund the drilling of the Dawson 6-30 Wabamun well. Cinch has agreed to incur Canadian exploration expenses in the amount of the proceeds raised from the issuance of the Flow-Through Shares to be renounced, effective on or before December 31, 2009, to subscribers of the Flow-Through Shares.

Forward Looking Statements

Statements throughout this release that are not historical facts may be considered to be "forward looking statements". These forward looking statements sometimes include words to the effect that management believes or expects a stated condition or result. All estimates and statements that describe the Company's objectives, goals, or future plans are forward looking statements, including management's expectations for anticipated use of proceeds from the financing. Since forward looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to any number of factors. Additional information on factors that could affect the Company's operations and financial results is included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), and at the Company's website (www.cinchenergy.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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