Cub Energy Inc.
TSX VENTURE : KUB

Cub Energy Inc.

December 17, 2012 10:18 ET

Cub Energy Inc.: Announces Closing of its Short Form Prospectus Offering

HOUSTON, TEXAS--(Marketwire - Dec. 17, 2012) -

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Cub Energy Inc. ("Cub" or the "Company") (TSX VENTURE:KUB), a Ukraine-focused upstream oil and gas company, is pleased to announce the closing of its previously announced short form prospectus offering (the "Offering") of 31,250,000 common shares of the Company ("Common Shares") at a price of $0.40 per Common Share, for total gross proceeds of $12,500,000. GMP Securities Europe LLP, GMP Securities L.P. and Canaccord Genuity Corp., as lead agents, with a syndicate that included Cormark Securities Inc. and Casimir Capital Ltd. (collectively, with the lead agents, the "Agents") were engaged to act as agents to sell the Common Shares under the Offering on a commercially reasonable best efforts agency basis. The Agents received a cash fee on the sale of the Common Shares equal to $625,000, representing 5% of the gross proceeds from the Offering.

It is anticipated that the net proceeds from the Offering will be used by the Company for further development, appraisal and exploration of the Company's interests in Ukraine, repayment of the drawn portion of a line of credit and general and administrative expenses.

About Cub Energy Inc.

Cub Energy Inc. (TSX VENTURE:KUB) is a Ukraine-focused upstream oil and gas company. Cub has 110,000 net acres, in nine exploration and production licenses, in the two major producing basins within Ukraine. The Corporation's strategy is to use western technology and capital, combined with local expertise to create value in its undeveloped land base, building a portfolio of high margin producing oil and gas assets. The Corporation has offices in Houston, Toronto and Kyiv and trades in Toronto under the stock symbol KUB.

For further information, please contact us or visit our website www.cubenergyinc.com.

Reader Advisory

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Cub believes that the expectations reflected in the forward-looking information are reasonable; however, there can be no assurance those expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, 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 anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: proposed terms of the offering, regulatory approvals and the timing thereof, issuance of the offered shares, closing of the offering and the use of net proceeds of the offering. Readers are cautioned that this list of risk factors should not be construed as exhaustive. This cautionary statement expressly qualifies the forward-looking information contained in this news release. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered or sold under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

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 accuracy of this release.

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