Longford Energy Inc.
TSX VENTURE : LFD

Longford Energy Inc.

July 10, 2008 10:50 ET

Longford Energy Closes $20 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - July 10, 2008) -

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

Longford Energy Inc. ("Longford" or the "Company") (TSX VENTURE:LFD) is pleased to announce that it has closed its previously announced equity financing, including the exercise in full of the underwriter's option, for total gross proceeds of $20 million. Pursuant to the financing, the Company has issued 25,000,000 units at a price of $0.80 per unit (the "Offering"). Each unit was comprised of one common share and one-half of one share purchase warrant, with each whole share purchase warrant entitling the holder thereof to acquire one Longford common share at a price of $1.00 at any time prior to July 10, 2010.

The Company intends to use the net proceeds from the financing for general corporate purposes.

Canaccord Capital Corporation, as lead underwriter, and Macquarie Capital Markets Canada Ltd. (collectively, the "Underwriters") acted as underwriters for the financing. The Underwriters have received a cash commission equal to 6% of the gross proceeds of the Offering and received 1,500,000 compensation options that will entitle them to acquire an equal number of Longford common shares at a price of $1.00 per share at any time prior to July 10, 2009.

All securities issued pursuant to the private placement are subject to a four month hold period.

This press release is not an offering of securities for sale in the United States. The units have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act.

About Longford Energy Inc.

Longford Energy Inc. is a junior Canadian oil and gas company actively pursuing international exploration and development opportunities.

Cautionary Note Regarding Forward-Looking Information

This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the terms of the financing, the planned use of proceeds, and receipt of all regulatory approvals. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, the actual results of exploration activities; regulatory risks; risks inherent in foreign operations; and other risks of the oil and gas industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information