Quetzal Energy Ltd.
TSX VENTURE : QEI

Quetzal Energy Ltd.

May 12, 2011 09:00 ET

Quetzal Announces Agreement to Sell Horden Lake Property

CALGARY, ALBERTA--(Marketwire - May 12, 2011) - Quetzal Energy Ltd. (TSX VENTURE:QEI) ("Quetzal"), is pleased to announce that it has entered into a binding Letter Agreement with El Condor Minerals Inc. (TSX VENTURE:LCO) ("El Condor"), to sell (the "Sale") Quetzal's 95% interest in its non-core Horden Lake Property, a copper-nickel property with precious metal credits located in the Province of Quebec, approximately 200 kilometers north of Mattagami, Quebec.

Under the terms of the Letter Agreement, El Condor will purchase Quetzal's 95% interest in the Horden Lake Property for a purchase price of $5 million, comprised of $3 million in cash, including a $100,000 deposit to be paid on or before May 21, 2011, and $2 million in common shares of El Condor. The common shares will be issued at a deemed price equal to the lesser of $0.20 per share and the price per share of a private placement of common shares that is undertaken by El Condor for proceeds of not less than $3 million, which will complete concurrently with, or in conjunction with the Sale.

Completion of the Sale will be conditional on, amongst other things, regulatory approval, the parties having entered into a Definitive Agreement for the Sale and El Condor's completion, to its satisfaction, of its due diligence review of the Horden Lake Property on or before June 10, 2011.

Ascendant Securities Inc. acted as an advisor to Quetzal with respect to the transaction.

About Quetzal

Quetzal is a development stage independent oil and gas company engaged in exploration, development, and production activities in Guatemala and Colombia. Quetzal is actively involved in identifying and developing commercial opportunities for the monetization of hydrocarbon resources in both countries.

Cautionary Statements

This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (together, "forward-looking information"). The use of any of the words "expect", "anticipate", "continue", "estimate", "believe", "plans", "intends", "confident", "may", "objective", "ongoing", "will", "should", "project", "should" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information concerning the use of proceeds of the recently completed offering of units of the Corporation.

The forward-looking information is based on certain key expectations and assumptions made by Quetzal, including expectations and assumptions concerning the operational results in Colombia and Guatemala. Although Quetzal believes that the expectations and assumptions on which the forward-looking information are based are reasonable, undue reliance should not be placed on the forward-looking information because Quetzal can give no assurance that they will prove to be correct.

Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the inherent risks involved in the exploration and development of oil and gas properties, the uncertainties involved in interpreting drilling results and other geological data, uncertainties relating to fluctuating oil and gas prices, the possibility of cost overruns or unanticipated costs and expenses and other factors including unforeseen delays. Anticipated exploration and development plans relating to Quetzal's properties are subject to change.

The foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information contained in this press release is made as of the date hereof and Quetzal undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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.

Contact Information