Junex inc.

Junex inc.

October 23, 2006 09:00 ET

Junex Inc. files preliminary short form prospectus for new issue and announces concurrent private placement

QUEBEC, Oct. 23 - Junex Inc. (JNX : TSX Venture Exchange)
announces that it filed a preliminary short form prospectus on Friday for a
new issue in Québec, Ontario, British Columbia and Alberta. The offering will
consist of a treasury issue of a minimum of 1,818,181 common shares and a
maximum of 4,545,454 common shares at a price of $1.10 per share, for minimum
proceeds of $2 million and maximum proceeds of $5 million to Junex.

Junex will use the net proceeds from the offering primarily to further
develop its Haldimand oil prospect, as well as for other oil and gas
exploration activities. The lead agent for the public offering is Laurentian
Bank Securities Inc.

Concurrent with the offering, Junex intends to effect a private placement
of units in Canada through Laurentian Bank Securities Inc. and D&D Securities
Company, on a best-efforts basis. Each unit will be comprised of one common
share and one-half of a common share purchase warrant. Each full warrant will
entitle the holder to acquire one additional common share of Junex for a
period of three years at a price of $1.45 per share. It is expected that the
private placement will be for minimum gross proceeds to Junex of $1 million
and maximum gross proceeds of $7 million. The units will be subject to a
four-month "hold period" under applicable securities legislation.

In connection with the public offering, Junex has applied for an advance
income tax ruling from the Ministère du Revenu du Québec confirming that the
shares offered pursuant to the prospectus will qualify for inclusion in an SME
Growth Stock Plan in accordance with the Taxation Act (Québec).

The public offering and private placement are subject to regulatory
approval, including that of the TSX Venture Exchange.

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's goal is to achieve positive cash flows from
its natural brine and drillings services operations. Junex also holds an
interest of approximately 12% in Petrolia (PEA: TSXV) and approximately 5% in
Gastem (GMR : TSXV).

Contact Information

  • JUNEX :
    Jean-Yves Lavoie
    President and Chief Executive Officer
    (418) 654-9661

    Dave Pépin
    Vice-President, Corporate Affairs
    (418) 654-9661

    Patrick Langlois
    Investment Banking - Institutional Equity
    (514) 350-3045