Mirage Energy Ltd.
TSX VENTURE : MGE

Mirage Energy Ltd.

November 13, 2006 20:00 ET

Mirage Energy Ltd. Announces Private Placement

CALGARY, ALBERTA--(CCNMatthews - Nov. 13, 2006) - Mirage Energy Ltd. (TSX VENTURE:MGE) ("Mirage" or the "Company") is pleased to announce that it has entered into an agreement with Leede Financial Markets Inc. and Blackmont Capital Inc. (collectively, the "Agents") to issue, on a best efforts basis, a minimum of 1,800,000 units ("Units") and a maximum of 2,400,000 Units at a price of $1.70 per Unit for minimum gross proceeds of $3,060,000 and maximum gross proceeds of up to $4,080,000 (the "Offering"). In addition, 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 10%, or 240,000 Units at a price of $1.70 per Unit for additional proceeds of $408,000.

Each Unit consists of two (2) flow-through shares, each representing $0.55 of Canadian Development Expenses and one (1) flow through share representing $0.60 of Canadian Exploration Expenses.

The Agents will receive a fee equal to 6% of the proceeds of the Offering along with an option (the "Agents' Option") to acquire that number of common shares of the Company equal to 6% of the total number of flow-through shares sold under the Offering. Each Agent's Option shall entitle the Agents to purchase one common share of the Company at a price of $0.50 for a period of twelve months from the date of the closing of the Offering.

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

The Offering is scheduled to close on or about November 28, 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