Lysander Minerals Corporation
TSX VENTURE : LYM

Lysander Minerals Corporation

April 27, 2009 13:14 ET

Lysander Announces Additional Investment in Energy

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 27, 2009) - Lysander Minerals Corporation (TSX VENTURE:LYM) ("Lysander") is pleased to announce that it has entered into a conditional agreement with Xtract Energy plc ("Xtract") of London, England under which it will acquire 35,000,000 shares in Elko Energy Inc. ("Elko"), representing all of Xtract's 35% interest in Elko, in exchange for 35,000,000 common shares of Lysander and warrants entitling Xtract to subscribe for an additional 17,500,000 common shares of Lysander at an issue price of $0.20 per share exercisable for a period of three years. The agreement is subject to further due diligence, the completion of a definitive agreement and to regulatory, Board and shareholder approvals.

Elko is a private Canadian registered oil & gas exploration company which has interests in exploration and production licences in the Danish and Dutch North Sea. Its major asset is in the Danish North Sea: an 80% interest in 26 offshore blocks in a 5,400 sq km exploration and production licence close to the prolific Central Graben oil field. Technical analysis carried out to date indicates the potential for significant reserves. Elko also holds a 60% operating interest in gas-bearing license blocks P1 and P2 in the Dutch North Sea.

Xtract (www.xtractenergy.co.uk) is a public company listed on AIM in London. It has a portfolio of energy properties, principally at early stages of development.

The acquisition of Xtract's interests in Elko will represent the second transaction arranged by Lysander under its policy, adopted following reorganization in 2008, of expansion into businesses with potential for high returns. For its expansion plans, Lysander is focusing on exceptional situations in the field of energy. It has already acquired rights over a coal mine in Ukraine and continues to advance that project. As previously announced, Lysander expects to issue 22,000,000 common shares on the exercise of its option to acquire Ukraine Energy Limited. For further information please visit the Lysander website at: www.lysanderminerals.com. Lysander plans to seek shareholder approval for both the Elko transaction and the Ukraine Energy transaction at an upcoming shareholder meeting.

Upon successful completion of both the above transactions, Xtract will own approximately 43.7% of the issued capital of Lysander, rising to approximately 52.2% on a fully diluted basis. Under the terms of the agreement with Lysander, Xtract will have the right to appoint a director to the board of Lysander. It is expected that Andy Morrison, CEO of Xtract and a director of Elko, will join the board of Lysander and will be available for oversight of the Elko interest. John Newton and John Conlon, directors of Lysander, are directors of Xtract.

In the year ended 31 December 2007, Lysander incurred a loss before tax of C$0.4 million and had net assets of C$4.3 million and Elko incurred a loss before tax of C$7.3 million and had net assets of C$19.9 million. The unaudited book value of Elko in Xtract's accounts as at 31 December 2008 was Pounds Sterling 4.0 million.

Lysander intends to continue its growth strategy. The relationship with Xtract, as a significant shareholder, is expected to enhance Lysander's ability to develop value for shareholders from its projects and investments.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this news release.

On behalf of the Board,

Bryce M.A. Porter, President and CEO

This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

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

Contact Information