Maskal Energy Ltd.

August 28, 2007 19:12 ET

Maskal Energy Ltd. Announces Private Placement

CALGARY, ALBERTA--(Marketwire - Aug. 28, 2007) -


Maskal Energy Ltd. (TSX VENTURE:MMK) ("Maskal" or the "Corporation") announces its intention to offer for sale, by way of non-brokered private placement, up to 3 million units ("Units") at $0.21 per Unit for gross proceeds to the Corporation of up to $630,000. Each Unit will be comprised of one common share ("Common Share") in the capital of Maskal and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to acquire one additional Common Share at an exercise price of $0.30 for a period of two years following completion of the subject private placement, subject to an increase in the exercise price of the Warrants to $0.40 in the event the weighted average trading price of the Common Shares exceeds $0.50 in any 20 day trading period. Proceeds of the private placement will be used to pay down existing indebtedness and for general working capital. It is possible that holders of outstanding debentures (see press release of June 29, 2007) will convert their existing indebtedness on the foregoing terms. The proposed private placement is subject to acceptance by the TSX Venture Exchange.

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

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