Exceed Energy Inc.

Exceed Energy Inc.

August 23, 2006 14:36 ET

Exceed Closes $2 Million Financing

CALGARY, ALBERTA--(CCNMatthews - Aug. 23, 2006) - Exceed Energy Inc. ("Exceed" or the "Corporation") (TSX VENTURE:EX.A) (TSX VENTURE:EX.B) is pleased to announce that it has completed a non-brokered private placement of 5,714,300 flow-through common shares (the "Flow-Through Shares") of the Corporation at a purchase price of $0.35 per common share, for gross proceeds of $2,000,005. The common shares issued pursuant to the private placement are subject to a four month hold period expiring on December 22, 2006.

The Corporation paid a cash commission of 6.5% of the gross proceeds in respect of the sale of the common shares and granted warrants equal to 6.5% of the number of Flow-Through Shares distributed to a finder in connection with the private placement. Each warrant allows for the purchase of one Class A common share of the Corporation at an exercise price of $0.35 per common share.

The proceeds of the private placement will be used to conduct oil and gas exploration in Canada, such that the Corporation can use the proceeds of the Flow-Through Shares in this private placement to incur and renounce to the holders of the Flow-Through Shares Canadian Exploration Expenses (or the equivalent) effective in 2006.

Exceed Energy Inc. is a Calgary based emerging oil and gas company engaged in the exploration development, and exploration of oil and gas reserves in Western Canada. Exceed's Class A and Class B shares trade on the TSX Venture Exchange under the symbols "EX.A" and "EX.B" respectively.

Forward Looking Statements

This press release may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projects relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from the potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors that could affect Exceed's operations or financial results are included in Exceed's reports on file with Canadian securities regulatory authorities that may be accessed at www.sedar.com or through the Company's website, www.exceedenergy.com.

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

Contact Information

  • Exceed Energy Inc.
    Richard Wolfli
    President & CEO
    (403) 508-1853
    (403) 508-1781 (FAX)
    Website: www.exceedenergy.com