Mirage Energy Ltd.
TSX VENTURE : MGE

Mirage Energy Ltd.

December 06, 2006 12:35 ET

Mirage Energy Ltd. Announces Increase to Previously Announced Private Placement

CALGARY, ALBERTA--(CCNMatthews - Dec. 6, 2006) - Mirage Energy Ltd. ("Mirage" or the "Company") (TSX VENTURE:MGE) is pleased to announce that it has reached an agreement with Leede Financial Markets Inc. and Blackmont Capital Inc. (the "Agents") to increase its previously announced private placement offering (the "Amended Offering") of a minimum of 1,800,000 units ("Units") and a maximum of 2,400,000 Units at a price of $1.70 per Unit, each Unit being comprised of two common shares in the capital of the Corporation issued on a "flow-through basis" as a Canadian Development Expense (the "CDE Flow-Through Shares") at a price of $0.55 per CDE Flow-Through Share and one common share in the capital of the Corporation issued on a "flow-through basis" as a Canadian Exploration Expense (the "CEE Flow-Through Shares") at a price of $0.60 per CEE Flow-Through Share for minimum gross proceeds of $3,060,000 and maximum gross proceeds of $4,080,000.

Pursuant to the Amended Offering, up to an additional 1,000,000 CDE Flow-Through Shares at a price of $0.55 per CDE Flow-Through Share and up to an additional 500,000 CEE Flow-Through Shares at a price of $0.60 per CEE Flow-Through Share will be issued increasing the gross proceeds raised pursuant to the Amended Offering by up to an additional $850,000.

As previously announced, the Agents have been granted an option, exercisable in whole or in part, at any time up to 48 hours prior to closing to increase the total offering by up to 240,000 Units at a price of $1.70 per Unit for additional proceeds of $408,000. The increase to the offering did not result in an increase in the Agents over-allotment option.

Proceeds of the Amended Offering will be used to fund general expenditures related to Mirage's exploration and development activities.

The Amended Offering is now scheduled to close on or about December 14, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

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 La Prade
    President and CEO
    (403) 232-1359
    Email: rchfield@shaw.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
    (403) 232-1359