Emerald Bay Energy Inc.

TSX VENTURE : EBY


Emerald Bay Energy Inc.

January 28, 2014 16:41 ET

Emerald Bay Announces Loan Extension

CALGARY, ALBERTA--(Marketwired - Jan. 28, 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") reports that it has entered into a loan agreement (the "Loan") with an arm's length lender (the "Lender") in the principal amount of $1,200,000 (the "Loan"). The Loan has been entered into on the same terms as the previous loan agreement, which expired on August 15, 2013. The Loan will bear interest at a rate of 10% per annum, compounded monthly, with a term ending August 15, 2014, subject to standard prepayment and conversion clauses.

In addition to industry standard security, the Loan is secured by a promissory note and security over the oil and gas assets of the Corporation.

In consideration of the Loan, the Corporation has agreed to re-issue the 5,000,000 common share purchase warrants ("Warrants") which were previously issued to the Lender under the previous loan agreement (and expired at the end of the previous loan agreement. Each Warrant shall be exercisable into one common share in the capital of the Corporation ("Common Share") at a price of $0.05 per Common Share on or before August 15, 2014.

The Common Shares issuable upon exercise of the Warrants or conversion of the Loan will be subject to a 4-month hold period. The Loan and extension of the expiry date of the Warrants are subject to the acceptance 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.

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

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