Junex inc.

Junex inc.

May 05, 2006 23:59 ET

Junex completes private placement of $1,000,000 convertible debenture with Desjardins-Innovatech

QUEBEC CITY, May 5, 2006 - Junex Inc. (JNX - TSX Venture Exchange)
announces that it has completed its previously-announced private placement by
issuing a convertible debenture in the principal amount of $1,000,000 to
Desjardins-Innovatech, s.e.c.

As previously announced, the debenture will bear interest at an annual
rate of 12.25%, payable semi-annually, and will mature on May 4, 2009. The
debenture will be convertible at any time at the option of the holder into
common shares of Junex on the basis of one common share for every $1.25
principal amount of the debenture for the first two years, which conversion
price will increase by 10% in the third year.

In connection with the private placement, Junex issued 333,333 common
share purchase warrants to Desjardins-Innovatech, s.e.c. Each warrant entitles
the holder thereof to subscribe for one additional common share of Junex at a
price of $1.50 for a period of two years from the date of issuance and at a
price of $1.65 for a period of one year thereafter.

The proceeds from the private placement will be used by Junex for
continued exploration for natural brine reservoirs and for working capital and
general corporate purposes.

The debenture and warrants were placed directly by Junex and are subject
to a four-month hold period, which expires on September 5, 2006.

About Junex

Junex holds exploration rights on more than 4 million acres of land
located in the Appalachian basin in the province of Quebec. Recent major
discoveries in the United States and Eastern Canada have stimulated
exploration in Quebec, which is located in a favourable geological setting for
oil and gas discovery. Junex's strategy is to reduce exploration risks by
entering into partnerships with other exploration companies. In parallel to
its exploration efforts, Junex goal is to achieve positive cash flows from its
natural brine and drillings services operations. Junex also holds a 12%
interest in Petrolia (PEA : TSVX) and a 8% interest in Gastem (GMR : TSXV).

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
%SEDAR: 00015378E

Contact Information

  • Mr. Jean-Yves Lavoie, P. Eng.
    Junex Inc.,
    (418) 654-9661;

    Mr. Dave Pépin,
    Corporate affairs,
    Junex Inc.,
    (418) 654-9661