Emerald Bay Energy Inc.
TSX VENTURE : EBY

Emerald Bay Energy Inc.

August 22, 2014 13:26 ET

Emerald Bay Announces Closing of Second Tranche of Private Placement

CALGARY, ALBERTA--(Marketwired - Aug. 22, 2014) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Emerald Bay Energy Inc. (TSX VENTURE:EBY) (the "Corporation" or "Emerald Bay") today reported that the Corporation has closed the second tranche of its previously announced private placement. Pursuant to this closing of the private placement, 11,175,000 units ("Units") (of which 1,625,000 Units were acquired by an officer of the Corporation) were issued at a price of $0.05 per Unit, for aggregate consideration of $558,750 ($150,000 was raised on Tranche 1 which closed on July 9, 2014 (on the same terms as this closing). Each Unit consisted of one (1) Common Share of the Corporation and one (1) share purchase warrant (the "Warrant") (each full Warrant shall entitle the holder thereof to purchase one (1) additional Common Share of the Corporation for a period of 12 months from the issuance of the Units at a price of $0.05) (the "Offering"). The Warrants are subject to an acceleration clause whereby if after four months and one day following the date the Warrants are issued, the closing price of the Common Shares of the Corporation on the principal market on which such shares trade is equal to or exceeds $0.10 for 30 consecutive trading days (with the 30th such trading date hereafter referred to as the "Eligible Acceleration Date"), the Warrant expiry date shall accelerate to the date which is 30 calendar days following the date a press release is issued by the Corporation announcing the reduced warrant term, provided, no more than five business days following the Eligible Acceleration Date: (i) the press release is issued; and (ii) notices are sent to all warrant holders.

The net proceeds will be used for exploration and expansion of the Corporation's South Texas property and general working capital needs.

Finder's fees were paid as follows: (i) $32,750 was paid to CIBC Wood Gundy along with the issuance of 655,000 finder's options (the "Finder's Options"); and (ii) $13,125 was paid to Dundee Capital Markets along with the issuance of 262,500 Finder's Options. Each Finder's Option is exercisable for a period of 12 months from the date of issuance into one Unit of the Corporation (on the same terms and conditions as those received by the subscribers under this Offering) at $0.05 per Unit.

All of the Common Shares and Warrants issued pursuant to the private placement are subject to a 4-month hold period. Completion of the private placement is subject to the final approval of the TSX Venture Exchange.

About Emerald Bay

Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas producer with production properties in Western Canada and South Texas. The common shares of Emerald Bay trade on the TSX Venture Exchange under the symbol "EBY". Please visit our website at www.emeraldbayenergy.com.

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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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