Echo Energy Canada Inc.

Echo Energy Canada Inc.

May 31, 2005 17:49 ET

Echo Graduates to Tier 1 Listing on TSX Venture Exchange

TORONTO, ONTARIO--(CCNMatthews - May 31, 2005) - Echo Energy (TSX VENTURE:EEI) is pleased to announce that it has graduated to a Tier 1 listing on the TSX Venture Exchange effective Monday, May 30, 2005 upon satisfying the TSX Venture Exchange's minimum listing requirements for a Tier 1 Oil and Gas Exploration and Development company.

As a result of the graduation to Tier 1, common shares held by Echo Energy's Principals and previously deposited in escrow under escrow agreements will be governed by the release provisions of a Tier 1 Value Escrow. The escrow agreements, in prescribed forms of the TSX Venture Exchange, were entered into pursuant to the three-cornered amalgamation of Echo Energy, 1593485 Ontario Inc. (a special purpose wholly-owned subsidiary of Echo Energy) and Echo Energy Inc. in September 2004. The escrow agreements provide that the Principals' Echo Energy common shares are to be governed by a Tier 2 Value Escrow during Echo Energy's listing on Tier 2. Under the Tier 1 Value Escrow provisions of the escrow agreements, 5,203,268 shares will be released from escrow immediately and the 10,406,520 common shares that will thereafter remain in escrow will be released from escrow as to 5,203,268 shares, each on October 15, 2005 and April 15, 2006.

Issued Share Capital: 51,201,915 Common Shares

Neither the TSX Venture Exchange nor any securities regulatory authority has approved or disapproved of this news release.

Contact Information

  • Echo Energy Canada Inc.
    Gary Conn
    (519) 455-8127 (in London, Ontario)
    Echo Energy Canada Inc.
    Joseph Fuda
    (416) 360-4031 (in Toronto, Ontario)