SOURCE: Native American Energy Group

Native American Energy Group

March 10, 2010 08:01 ET

NAEG Signs Interim Financing Credit Agreement for Completion of Audits and SEC Registration

FOREST HILLS, NY--(Marketwire - March 10, 2010) - Native American Energy Group, Inc. (PINKSHEETS: NAGP) ("NAEG" or the "Company") announced today its execution of a credit agreement with a private finance group which provides an initial credit line of up to USD$500,000 to the Company. The credit line commitment has been secured by 250,000 restricted common shares of the Company.

The proceeds from the credit line will be used to:

  1. Complete the Company's 2-year financial statement audits in accordance with PCAOB standards. (Completion is expected by April 30, 2010.)

  2. File a Registration Statement with SEC (form-10 or S-1).

  3. Provide general working capital.

The Company expects that borrowings under the line of credit will be repaid primarily with proceeds from further financing arrangements the Company intends to close in connection with the development of its energy projects. Under the agreement, advances to NAEG are subject to the final approval of the lender and accrue interest at the rate of 10% per annum.

Since recently receiving its bona-fide status as an OTC Pink Sheet Company and achieving its "CURRENT INFORMATION STATUS," the Company has begun actively pursuing financial partners to fund development of its energy projects in Montana & Alaska and its wind energy initiative for New York City and Indian reservations throughout the United States. PCAOB registered auditors are completing audits of the Company's 2008 and 2009 financial statements. By May 15th, NAEG intends to file either a Form-10 prior to the consummation of a funding arrangement or an S-1 Registration Statement with the Securities & Exchange Commission as part of a funding arrangement.

"We're pleased that obtaining 'Current Information Status' has given us the results we were hoping to achieve; having received this interim line of credit, immediately, simply validates that," said Raj Nanvaan, Native American Energy Group's Chief Financial Officer. "This line of credit will allow us to handle the immediate expenses related to our financial statement audits, currently underway, as well as the filing of our registration statement with the SEC to become a reporting public company and to advance to the OTC Bulletin Board. Such advancement will allow for upper tier funding prospects, additional transparency and a more liquid trading market for our stockholders."  

About Native American Energy Group, Inc. (PINKSHEETS: NAGP)
New York-based Native American Energy Group is an independent, energy resource development and management company that specializes in oil, natural gas, and alternative energy systems. For more information, please visit the Company's website at: www.nativeamericanenergy.com.

Safe Harbor Statement:
This release may contain descriptions of the Company's expectations regarding future business activities. These forward-looking statements are made in reliance upon safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Accordingly, actual results may differ materially from those contemplated by the forward-looking statements.

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