Dalmac Energy Inc.
TSX VENTURE : DAL

Dalmac Energy Inc.

September 19, 2005 18:24 ET

Dalmac Updates Financing Arrangements

EDMONTON, ALBERTA--(CCNMatthews - Sept. 19, 2005) - John Babic, President and CEO of Dalmac Energy Inc. (TSX VENTURE:DAL) ("Dalmac") announces that Dalmac has been notified by its principal lender that the Company is presently in breach of its debt to tangible net worth ratio required under its covenants with the lender, but that the lender has agreed to waive that covenant for fiscal 2005 provided that Dalmac is in full compliance by the fiscal quarter ending October 31, 2005. These loan facilities include an operating loan (line of credit) set at a maximum of $1,200,000 and a $750,000 non-revolving loan. At present Dalmac has drawn down approximately $950,000 of the line of credit and has a balance of approximately $395,000 on its non-revolving loan. The Company expects to be in compliance with the debt to tangible net worth covenant before October 31, 2005.

In addition, Dalmac has received a conditional commitment from GE Canada Equipment Financing to provide a non-revolving capital expenditure line of credit for the acquisition of production equipment in the amount of $4,000,000 (which includes existing financing in place with GE of approximately $2,000,000). This financing arrangement will provide Dalmac with an additional $2,000,000 in equipment purchase financing. The GE financing commitment is subject to a number of conditions, including completion of all required due diligence and confirmation of compliance with covenants prior to each disbursement.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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