Excelsior Energy Limited

Excelsior Energy Limited

June 11, 2007 09:15 ET

Excelsior Energy Limited Announces Increase in Size of Private Placement Financing

CALGARY, ALBERTA--(Marketwire - June 11, 2007) -


Excelsior Energy Limited ("Excelsior" or the "Corporation") (CNQ:EXEL) is pleased to announce that the "best efforts" private placement (the "Offering") previously announced on May 25, 2007 is significantly oversubscribed. The Offering has been increased by $15,000,000 to $35,001,250, comprised of (i) units issued at a subscription price of $0.85 per unit and (ii) common shares ("flow-through shares") issued on a "flow-through" basis at a price of $1.05 per flow-through share (to a maximum of 7,620,000 flow-through shares). Each unit is comprised of one common share and one common share purchase warrant, with each warrant entitling the holder thereof to acquire an additional 0.05 of a common share at no additional cost should the common shares of the Corporation not be listed and posted for trading on the TSX Venture Exchange, Inc. on or before the expiration of 120 days from the closing of the Offering.

Proceeds of the Offering will be used to fund Excelsior's ongoing exploration and development activities at the Corporation's Hangingstone property located in northern Alberta and the Corporation's international oil and gas exploration and development ventures. The common shares, warrants and flow-through shares will be subject to a hold period of 4 months from closing of the Offering.

The private placement is being conducted through a syndicate of investment dealers, led by Canaccord Capital Corporation and including Orion Securities Inc.

Closing of the Offering is subject to customary conditions, including receipt of required regulatory approvals, and is expected to occur on or about June 21, 2007.

About Excelsior Energy:

The Corporation is active in oil sands exploration and appraisal in the Hangingstone area near Fort McMurray, Alberta and will hold a 75% working interest in 39 contiguous sections on completion of its farm-in obligations and the closing of a proposed acquisition of a private company holding 22.5 % of the asset. The Corporation also holds a 100% working interest in Blocks 16/1a and 16/6c in the UK North Sea and a minor interests in gas production in Alberta.

The Corporation's strategy is to capture oil and gas appraisal and development opportunities where we can leverage Management's diverse international experience and field development expertise. This includes heavy oil reservoir engineering and development of complex fields. The scale of the oil sands resource opportunity in Alberta complements Excelsior's international portfolio and strategy.

The common shares, warrants and flow-through shares have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward Looking Statements

Certain information set forth in this press release, including a discussion of future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources, as well as risks inherent in operating in foreign jurisdictions, including varying judicial or administrative guidance on interpreting rules and regulations and a higher degree of discretion on the part of governmental authorities. Actual results, performance or achievement could differ materially from those expressed in or implied by these forward-looking statements.

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