Donnybrook Energy Inc.
TSX VENTURE : DEI

Donnybrook Energy Inc.

March 18, 2011 09:02 ET

Donnybrook Energy Inc.: Closing of $5 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - March 18, 2011) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES, TO UNITED STATES NEWS WIRE SERVICES OR TO UNITED STATES PERSONS.

DONNYBROOK ENERGY INC. (TSX VENTURE:DEI) ("Donnybrook" or the "Company") reports that it has closed its previously announced bought deal private placement of "flow-through" common shares within the meaning of the Income Tax Act (Canada) ("Flow-Through Common Shares") at a price of $0.75 per Flow-Through Common Share (the "Offering") with GMP Securities L.P. (the "Underwriter"), as underwriter. Pursuant to the Offering, a total of 6,700,000 Flow-Through Common Shares were issued for aggregate gross proceeds of $5,025,000 and includes the exercise, in full, of the Underwriter's option to purchase up to an additional 2,700,000 Flow-Through Common Shares at a price of $0.75 per share.

The proceeds from the Offering will be used to incur eligible Canadian Exploration Expenses (as defined in the Income Tax Act (Canada)) prior to December 31, 2012 and which will be renounced to subscribers effective on or before December 31, 2011. Donnybrook plans to expend the proceeds to fund Donnybrook's exploration activities in the Resthaven, Simonette, Bigstone, Gold Creek and Ansell areas of Alberta.

The Flow-Through Common Shares issued pursuant to the Offering are subject to a four month hold expiring July 19, 2011. A commission of 6% of the gross proceeds of the Offering was paid to the Underwriter.

ON BEHALF OF THE BOARD OF DONNYBROOK ENERGY INC.

Malcolm Todd, Chief Executive Officer

This news release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States or to or for the account or benefit of US persons (as such terms are defined in Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act")), absent registration or an exemption from registration. The securities offered have not been and will not be registered under the U.S. Securities Act or any state securities laws and, therefore, may not be offered for sale in the United States, except in transactions exempt from registration under the U.S. Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

FORWARD-LOOKING STATEMENTS

Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"), including statements regarding the use of the proceeds of the Offering. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Donnybrook's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Donnybrook believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Donnybrook does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

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 news release.

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