Desmarais Energy Corporation
TSX VENTURE : DES

May 07, 2009 18:26 ET

Desmarais Announces Non-Brokered Private Placement

CALGARY, ALBERTA--(Marketwire - May 7, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Desmarais Energy Corporation (TSX VENTURE:DES) ("Desmarais" or the "Corporation") is pleased to announce that, subject to regulatory approval, it intends to proceed with a non-brokered private placement (the "Private Placement") financing of up to 1,500,000 units (the "Units") of the Corporation at a price of $0.10 per Unit for aggregate gross proceeds of up to $150,000. Each Unit will be comprised of one common share in the capital of the Corporation and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to purchase one (1) Common Share for $0.15 from the date of issue to the date that is 12 months from the date of issue.

Additionally, subject to regulatory approval, the Corporation has agreed to issue finder's warrants (each, a "Finder's Warrant") such Finder's Warrants entitling the holder thereof to purchase such number of Units as is equal to 10.0% of the number of Units sold pursuant to the Private Placement at an exercise price of $0.10.

Proceeds of the private placement will be used for general corporate purposes.

CAUTIONARY STATEMENTS

Certain statements regarding Desmarais include management's assessments of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Desmarais' control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.

Such factors include, but are not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and development drilling and related activities; imprecision in reserve estimates; the production and growth potential of Desmarais' various assets; fluctuations in foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities.

Accordingly, Desmarais gives no assurance nor makes any representations or warranty that the expectations conveyed by the forward-looking statements will prove to be correct and actual results may differ materially from those anticipated in the forward looking statements. Desmarais undertakes no obligation to publicly update or revise any forward-looking statements.

Neither 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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