Dalmac Energy Inc.

Dalmac Energy Inc.

August 17, 2005 11:10 ET

Dalmac to Proceed with Re-Priced Short Form Offering

EDMONTON, ALBERTA--(CCNMatthews - Aug. 17, 2005) - Dalmac Energy Inc. (TSX VENTURE:DAL) announces that it is proceeding with its financing by way of a short form offering, previously announced on June 23, 2005, at a revised price of $0.70 per Unit. The financing will be for a minimum of $500,000 (714,286 units) up to a maximum of $1,000,000 (1,428,571 units) at a price of $0.70 per unit, and will be conducted by way of a short form offering document under the rules of the TSX Venture Exchange. Each unit consists of one common share and one-half of one share purchase warrant; each whole share purchase warrant will entitle the holder to purchase one common share at a price of $0.85 per share if exercised within 24 months of the closing date. Wolverton Securities Ltd. is acting as the agent for this financing, and will receive a cash commission equal to 8% of the gross proceeds and an option to purchase that number of units equal to 10% of the units sold pursuant to this offering at a price of $0.70 per unit for a period of 24 months from the closing date.

The net proceeds from this financing will be used to assist in financing the purchase of 2 Hydrogen (N2) pumping units.

Completion of the financing is subject to the approval of the TSX Venture Exchange.


Per: ______________________

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