Ivory Energy Inc.

Ivory Energy Inc.

July 11, 2007 19:49 ET

Ivory Energy Announces Filing of Final Prospectus for Maximum $28.5 Million Convertible Debenture Unit Offering

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


Ivory Energy Inc. ("Ivory") (TSX VENTURE:IV) has today filed a final short form prospectus in connection with a public offering of convertible debenture units (the "Units") to raise a minimum of $25 million and a maximum of $28.5 million (the "Offering"). The Offering will be conducted by Wellington West Capital Markets Inc., acting as agent to Ivory on a best efforts basis.

Each Unit being offered consists of $1,000 principal amount of convertible secured subordinated debentures (the "Debentures") and 200 common share purchase warrants (the "Warrants") of Ivory. The Debentures will mature on the date that is five years and one day following the closing of the Offering, will bear interest at 9.5% per annum, will be convertible into 1,000 common shares of Ivory (being a conversion price of $1.00 per share) at the option of the holder at any time prior to the maturity date and will be redeemable for cash at the option of Ivory at a redemption price equal to $1,020 per Debenture and $1,010 per Debenture any time after the third and fourth anniversary of the closing of the Offering respectively. Each Warrant will entitle the holder to purchase one common share of Ivory for a period of five years following the closing of the Offering at an exercise price of $1.00. The Units will separate into Debentures and Warrants immediately upon issue.

The Offering is scheduled to close on or about July 18, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

Ivory plans to use the net proceeds of the Offering to fund its previously announced acquisitions of 101091129 Saskatchewan Ltd. and Zenith Petroleum Corp. and its 2007/2008 development program. Further information regarding the acquisitions can be found in Ivory's press releases dated March 20, 2007, June 22, 2007, Ivory's website www.ivoryenergy.com and www.sedar.com.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Ivory in the United States. The securities of Ivory have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold, directly or indirectly in the United States or to or for the account or benefit of a U.S. person absent U.S. registration or an applicable exemption from the U.S. registration requirements.

This news release contains statements concerning anticipated acquisitions. The proposed acquisitions could be delayed or cancelled altogether if all necessary regulatory approvals are not received and all other conditions to closing are not satisfied within the expected timelines.

The forward-looking statements contained in this news release are made as at the date of this news release and Ivory does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.

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