Morumbi Oil and Gas Inc.
TSX VENTURE : MOC

January 18, 2011 09:12 ET

Morumbi Oil & Gas Inc. Closes Private Placement

CALGARY, ALBERTA--(Marketwire - Jan. 18, 2011) - Morumbi Oil & Gas Inc. (TSX VENTURE:MOC) ("Morumbi" or the "Company") is pleased to announce that it has closed on the final tranche of a non-brokered private placement offering (the "Offering") for gross proceeds of $40,000. The Company issued 200,000 units (each a "Unit"), at a price of $0.20 per Unit. Each Unit consists of one common share of the Company ("Common Share") and one-half of one common share purchase warrant (each whole being a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share of the Company at a price of $0.30 for 12 months from the date of issuance, subject to earlier exercise in accordance with the terms thereof.

Together with the closing of the first tranche, which was disclosed in a press release dated December 24, 2010, Morumbi has issued an aggregate of 3,725,000 Units resulting in total gross proceeds to the Company of $745,000 from the sale of Units under the Offering.

Proceeds of the Offering will be used to fund completion of the Morumbi 102 McKinley 12-33-65-22 well located in McKinley Alberta and otherwise for general corporate purposes.

All securities issued pursuant to the Offering, including the Common Shares and Warrants underlying the Units, the Common Shares underlying the Warrants, the Finder's Warrants and the Common Shares and Warrants underlying the Finder's Warrants are subject to a four (4) month statutory hold commencing from closing.

About Morumbi

Morumbi Oil & Gas Inc. is a public company with attractive near-term light oil exploitation opportunities in northwest Alberta. The Company trades on the TSX Venture Exchange under the symbol "MOC". For more information about Morumbi and the Company's McKinley Property and plans visit our website at www.morumbi.ca.

Disclaimer

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations (including plans for developing assets) and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, commodity prices, risks inherent in the oil & gas industry, financing risks, labour risks, title disputes, regulatory risks, currency fluctuations, competition, unexpected decline rates in wells, changes in taxation or royalty regimes and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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