Mirage Energy Ltd.
TSX VENTURE : MGE
PINK SHEETS : MRGYF

Mirage Energy Ltd.

July 11, 2007 15:59 ET

Mirage Energy Announces Closing of the Second Tranche of Non-Brokered Debenture Private Placement

CALGARY, ALBERTA--(Marketwire - July 11, 2007) - Mirage Energy Ltd. (TSX VENTURE:MGE) (PINK SHEETS:MRGYF) ("Mirage" or the "Company") is pleased to announce that it has closed the second and final tranche of its previously announced non-brokered private placement (the "Private Placement") of $170,000 principal amount of 10% fixed rate convertible debentures (the "Debentures"). The Debentures are convertible into units (each, a "Unit") at a price of $0.50 per Unit. Each Unit is comprised of one common share in the capital of the Corporation (a "Common Shares") and one Common Share purchase warrant (a "Warrant"). Each Warrant is convertible into one Common Share of the Company at a price of $0.50 for two years from the date of closing of the Private Placement. The Debentures are convertible, in whole or in part, at any time prior to the date which is 24 months subsequent to the closing of the Private Placement, at the option of the holder.

In total, an aggregate of $567,020 principal amount of Debentures were sold pursuant to the Private Placement (including the $397,020 principal amount of Debentures sold pursuant to the first tranche).

The Debentures issued pursuant to the Private Placement will be subject to a hold period of 4 months and one day from the date of closing of the Private Placement.

An aggregate of $8,700 in finders fees was paid to certain persons in connection with the closing of the second trance of the Private Placement ($16,800 total). Insider participation totaled 14.7% of the total funds raised pursuant to the second tranche of the Private Placement (16.2% total).

Proceeds of the Private Placement will be used to fund general expenditures related to Mirage's development and exploration of its oil and natural gas properties.

The securities offered have not been and will not be 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 applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Mirage is a newly formed junior oil and gas company focused on the exploration and development of oil and gas in western Canada.

READER ADVISORY

Statements in this press release may contain forward-looking statements including expectations with respect to future events and the actions of third parties. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the underlying risks of the oil and gas industry (i.e. operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses, adequate available financing and health, safety and environmental factors), commodity price and exchange rate fluctuation and uncertainties.

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

Contact Information

  • Mirage Energy Ltd.
    Rene LaPrade
    President and CEO
    (403) 232-1359
    Email: rene@mirage-energy.ca
    or
    Mirage Energy Ltd.
    Peter J. Boswell
    Chairman
    (403) 232-1359
    Email: petebos@telusplanet.net
    or
    Mirage Energy Ltd.
    800, 510 - 5th Street S.W.
    Calgary, Alberta T2P 3S2