E.G. Capital Inc.
NEX BOARD : EGC.H

July 14, 2005 18:43 ET

E.G. Capital Inc. (Formally National Construction Inc.) Announces Completion of Financing

BROSSARD, QUEBEC--(CCNMatthews - July 14, 2005) -

Not for dissemination in the United States of America.

E.G. CAPITAL INC. (formally National Construction Inc.) (the "Corporation") (NEX BOARD:EGC.H) announces that it has completed a private placement of 3,500,000 units at a price of $0.10 per unit (the "Private Placement") as previously announced in a press release dated March 21, 2005. Each unit (the "Units") consists of one common share and one warrant, with each warrant entitling the holder thereof to purchase one common share at a price of $0.10 per share for a period of one year (the "Warrants"). Pellinore Holdings Inc., a private company controlled by Al J. Kroontje, subscribed for the 3,500,000 Units.

Upon closing of the Private Placement, the Board of Directors has been revised to consist of Al J. Kroontje and Douglas M. Stuve, as well as Keith F. Eaman and Bradley Griffiths, two existing directors. The officers of the Corporation will consist of Keith F. Eaman as Chairman and interim President and William G. Edwards as Vice-President, Finance and Chief Financial Officer.

Al Kroontje is the President of Telford Services Group Inc., a public oil and gas services company listed on TSX Venture Exchange Inc. ("TSX Venture") and the President and a Director of Galleria Opportunities Inc., a public company listed on the NEX Board of TSX Venture. Mr. Kroontje formerly held positions of Director, Chairman and President of Tesoro Energy Corp., a public oil and gas company listed on the Toronto Stock Exchange, during the period of June 2000 to July 2004. He also held positions, including Director, Chairman and Interim President, of Quarry Oil & Gas Ltd., a public oil and gas company listed on TSX Venture, from May 1995 to July 2003. More recently, Mr. Kroontje was the Chief Executive Officer of Pelorus Energy Corp. from May 2004 until October 2004 and the Chairman of Pelorus Energy Corp. from August 2003 until December 2004, a public oil and gas company listed on TSX Venture.

Douglas M. Stuve is a partner with the law firm Burstall Winger LLP of Calgary, Alberta. Mr. Stuve's principal area of practice is corporate finance and securities law, as well as general corporate commercial law. Mr. Stuve has served as a Director and officer of several public companies and is currently a Director of International Technologies Corp., Yangarra Resources Inc., Cascadia International Resources Inc., Engineering.com Incorporated, Multi-Glass International Corp., Kelso Energy Inc. and Golden Odyssey Mining Inc., all public companies listed on TSX Venture. Mr. Stuve is a past director of Tesoro Energy Corp., a public oil and gas company listed on the Toronto Stock Exchange, and Pelorus Energy Corp., a public oil and gas company listed on TSX Venture. Mr. Stuve is also a past Director of Patfind Inc., the first capital pool company offering completed on TSX Venture, as well as Canadian Public Venture Capital I Inc., two capital pool companies that completed their Qualifying Transactions.

The Corporation intends to use the proceeds of the Private Placement to review and pursue oil and gas acquisitions and farm-in opportunities in the Western Canadian Sedimentary Basin. The Corporation further intends to attempt to unlock the value of its tax pools of approximately $25,000,000. In connection therewith, the Corporation intends to pursue a new management team, including a President, Chief Financial Officer, Vice-President, Exploration and Vice-President, Land, during 2005.

Upon completion of the Private Placement, the Corporation also announces it has granted options to purchase up to 1,882,000 common shares at a price of $0.10 per share to directors and officers.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

Contact Information

  • E.G. Capital Inc.
    Keith F. Eaman
    Chairman
    (450) 444-2405 ext. 230
    or
    E.G. Capital Inc.
    Al J. Kroontje
    (403) 215-4830 ext. 225