Exile Resources Inc.
TSX VENTURE : ERI

Exile Resources Inc.

December 24, 2010 07:30 ET

Exile Resources Inc. Announces Private Placement Financing With Fidelity Investments

TORONTO, ONTARIO--(Marketwire - Dec. 24, 2010) -

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Exile Resources Inc. (TSX VENTURE:ERI) ("Exile" or the "Company") is pleased to announce that it has entered into a subscription agreement with Fidelity Investments ("Fidelity"), whereby Fidelity has agreed to purchase, on a non-brokered basis, up to 9,000,000 common shares (the "Common Shares") at $0.20 per Common Share (the "Private Placement"). 

The Company intends to use the net proceeds from the financing for corporate development purposes, to advance Exile's exploration campaign, particularly the current seismic acquisition program and drilling of an appraisal well on the Ogunduk structure in Turkey scheduled for the second quarter of 2011, and for general corporate purposes.

Upon completion of the Private Placement, Fidelity will hold approximately 9.7% of the issued and outstanding common shares of the Company.

Stan Bharti, Chairman of Exile commented: "We welcome this strategic investment from a significant investor and Exile looks forward to the upcoming exploration campaign in 2011 in Turkey."

The securities issuable pursuant to the Private Placement will be subject to a statutory hold period of four months plus one day. The Private Placement is expected to close on or about December 24, 2010. The Private Placement is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. 

About Exile Resources Inc.

Exile is an oil and gas exploration company advancing the development of the Akepo Oilfield in the shallow water Niger Delta, Nigeria. Exile is also pursuing additional oil and gas exploration and development opportunities in Africa. Please visit Exile's web site for further information: www.exileresources.com.

Forward-Looking Statements – Certain information set forth in this news release may contain forward-looking statements within the meaning of the applicable securities legislation. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Exile Resources Inc. Forward-looking information includes, but is not limited to, statements with respect to: the anticipated use of proceeds; completion of the financing on the terms announced and receipt of all necessary regulatory approvals; current strategic initiatives; prospective nature of the Company's properties; estimates regarding future production; the future financial and operating performance of Exile and its projects; 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. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social risks and uncertainties; risks relating to oil and gas exploration and exploitation activities; oil and gas prices; transaction risks; and delays in obtaining regulatory approvals. Although Exile has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. 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. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and, as such, undue reliance should not be placed on forward-looking statements. Exile does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. 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 state in which such offer, solicitation or sale would be unlawful.

NEITHER THE 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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