Exile Resources Inc.
TSX VENTURE : ERI

Exile Resources Inc.

October 25, 2010 10:13 ET

Exile Resources Inc. Announces Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Oct. 25, 2010) -

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Exile Resources Inc. (TSX VENTURE:ERI) ("Exile" or the "Company") announced today that it proposes to complete a non-brokered offering (the "Private Placement") of up to 20,100,000 units ("Units") at $0.12 per Unit, with each Unit consisting of one common share of Exile and one full share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to acquire one additional common share of Exile for a period of 18 months at an exercise price of $0.25 per share, provided that if at any time after the date which is four months and one day following the issuance of the Warrants, the closing price of the common shares of Exile for any 30 consecutive trading days exceeds $0.50, Exile may accelerate the expiry date to 30 days following the date on which Exile provides notice of the accelerated expiry date to Warrant holders.

In connection with the Private Placement, it is anticipated that Roderick de Courcy-Ireland and John Orange will resign from the board of directors of Exile and will be replaced by Messrs. Ahmed Said and Mr. Stan Bharti. Mr. Bharti is the President of Forbes & Manhattan, Inc. and the Chairman of Forbes Energy Group. Mr. Bharti is expected to become non-executive Chairman of the Company. He has over 25 years of business, management and financial experience. Over the last 10 years, Mr. Bharti has been involved in the creation, acquisition, restructuring and financing of a large number of resource companies globally. Transactions have included acquisitions in Europe, Australia, Africa and North America.

Mr. Said, P. Eng., is the CEO of Forbes Energy Group and his background includes operational and senior management roles in the oil and gas industry, both domestically and internationally. Headquartered in Calgary, Canada, Forbes Energy Group manages 5 public companies and has significant investments in Kurdistan, Colombia and Brazil. Over the past 2 years, Forbes Energy Group has raised and invested approximately $200 Million collectively in a number of private and public company. Mr. Said is also the director of several public and private companies.

The Private Placement and the appointment of new directors each remains subject to the approval of the TSX Venture Exchange. 

About Exile Resources Inc. 

Exile Resources Inc. is an oil and gas exploration company advancing the development of the Akepo Oilfield in the shallow water Niger Delta, Nigeria. With significant experience and track record of success in international operations, the Company is pursuing additional prospects in Africa, Turkey and beyond, looking for opportunities that are early on in the exploration and development value chain. Please visit Exile Resources web site for further information: www.exileresources.com

To receive news releases from Exile, please email hchristensenbrown@equicomgroup.com and mention "Exile Resources" in the subject line. 

Forward-Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Exile Resources Inc. including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of estimates, currency fluctuations, independent actions of its joint venture partners, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. 

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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