Grand Banks Energy Corporation
TSX VENTURE : GBE

Grand Banks Energy Corporation

October 27, 2006 15:27 ET

Grand Banks Energy Corporation Announces Initial Closing of Private Placement

CALGARY, ALBERTA--(CCNMatthews - Oct. 27, 2006) -

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

Grand Banks Energy Corporation (TSX VENTURE:GBE) (the "Company") is pleased to announce that the initial closing of its $4.2 million private placement of flow-through common shares. The initial closing consisted of the issuance of 1,680,000 shares for gross proceeds of $3,528,000. A second and final closing for the remainder of the offering is expected to take place next week.

The shares issued are subject to a four month hold period that expires on February 28, 2007. An aggregate of $121,800 of agent fees were paid in connection with today's closing.

The net proceeds from the private placement will be used for exploration purposes.

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.

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

Contact Information

  • 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)