Espoir Exploration Corp.

Espoir Exploration Corp.

March 01, 2005 12:54 ET

Espoir Announces Closing of $10 Million Bought Deal Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ESPOIR EXPLORATION CORP.

TSX VENTURE SYMBOL: ESX.A
TSX VENTURE SYMBOL: ESX.B

MARCH 1, 2005 - 12:54 ET

Espoir Announces Closing of $10 Million Bought Deal
Financing

CALGARY, ALBERTA--(CCNMatthews - March 1, 2005) - Espoir Exploration
Corp. (TSX VENTURE:ESX.A) (TSX VENTURE:ESX.B) :

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

Espoir Exploration Corp. ("Espoir" or the "Corporation") is pleased to
announce that it has closed the previously announced "bought deal"
financing with an underwriting syndicate led by GMP Securities Ltd.
("GMP") and including First Associates Investments Inc., for gross
proceeds of approximately $10,000,000. In total, 2,898,551 Class A
shares were issued at a price of $3.45 per share, after the exercise of
the underwriters' greenshoe option to place 579,710 shares.

The shares are subject to a four month hold period which expires July 2,
2005. Listing of the shares is subject to normal regulatory approvals.

Proceeds from the offering will be used to fund further exploration and
development programs in the Corporation's Peace River Arch and central
Alberta focus areas.

Espoir is a Calgary-based emerging oil and gas company engaged in the
exploration, development and exploitation of oil and gas reserves in
Western Canada. Espoir's goal is to generate sustainable and profitable
per share growth in earnings, cash flow and reserves for shareholders by
aggressively pursuing focused exploration, exploitation, development and
acquisition opportunities in the Corporation's initial focus areas of
Central Alberta and the Peace River Arch Area of Alberta. Espoir's
shares trade on the TSX Venture Exchange under the symbols "ESX.A" and
"ESX.B".

Forward-Looking Statements

This press release may include forward-looking statements including
opinions, assumptions, estimates and expectations of future production,
cash flow and earnings. When used in this document, the words
"anticipate," "believe," "estimate," "expect," "intend," "may,"
"project," "plan", "will", "should" and similar expressions are intended
to be among the statements that identify forward-looking statements.
Forward-looking statements are subject to a wide range of risks and
uncertainties, and although the Corporation believes that the
expectations represented by such forward-looking statements are
reasonable, there can be no assurance that such expectations will be
realized. Any number of important factors could cause actual results to
differ materially from those in the forward-looking statements
including, but not limited to, the volatility of oil and gas prices, the
ability to implement corporate strategies, the state of domestic capital
markets, the ability to obtain financing, changes in oil and gas
acquisition and drilling programs, operating risks, production rates,
reserve estimates, changes in general economic conditions and other
factors more fully described from time to time in the reports and
filings made by the Corporation with securities regulatory authorities.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Espoir Exploration Corp.
    Bruce M. Beynon
    President and Chief Executive Officer
    (403) 294-1442
    (403) 294-1455 (FAX)
    or
    Espoir Exploration Corp.
    Michael A. Wilhelm
    Vice-President, Finance and Chief Financial Officer
    (403) 294-1442
    (403) 294-1455 (FAX)
    Website: www.espoir-exploration.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.