Grand Banks Energy Corporation

Grand Banks Energy Corporation

March 03, 2005 12:16 ET

Grand Banks Energy Corporation Announces Completion of $5.875 Million Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GRAND BANKS ENERGY CORPORATION

TSX VENTURE SYMBOL: GBE

MARCH 3, 2005 - 12:16 ET

Grand Banks Energy Corporation Announces Completion of
$5.875 Million Private Placement

CALGARY, ALBERTA--(CCNMatthews - March 3, 2005) - Grand Banks Energy
Corporation (TSX VENTURE:GBE) (the "Company") is pleased to announce
that the "bought deal" financing announced on February 14, 2005 has been
completed. The underwriters, Haywood Securities Inc. and Acumen Capital
Finance Partners Limited, exercised their option in full and an
aggregate of 3,000,000 common shares were issued on a flow-through basis
at a price of $1.95 per share for total gross proceeds of $5,875,000.
The shares issued are subject to a four month hold period that expires
on July 4, 2005.

The net proceeds of the private placement will be used for exploration
and development, including the Company's participation in an expanded
high impact deep gas exploration program. This program will involve the
drilling, over the next year, of up to seven 3D seismically defined
Devonian targets located in West Central Alberta and N.E. British
Columbia.

Grand Banks is listed on the TSX-Venture Exchange under the Symbol GBE.

This news release shall not constitute an offer to sell or the
solicitation of any offer to buy the securities in any jurisdiction. The
common shares offered will not be and have not been registered under the
United States Securities Act of 1933 and may not be offered or sold in
the United States absent registration or an applicable exemption from
the registration requirement.

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

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Grand Banks Energy Corporation
    E.C. (Ted) McFeely
    Chairman, President and Chief Executive Officer
    (403) 262-8666
    or
    Grand Banks Energy Corporation
    1600, 444 - 5th Avenue S.W.
    Calgary, Alberta T2P 2T8
    (403) 262-8666
    (403) 262-8796 (FAX)
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the contents of this news
    release.