Quetzal Energy Ltd.
TSX VENTURE : QEI

Quetzal Energy Ltd.

December 19, 2011 18:32 ET

Quetzal Energy Ltd. Announces Closing of the Sale of Horden Lake Property

CALGARY, ALBERTA--(Marketwire - Dec. 19, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Quetzal Energy Ltd. ("Quetzal") (TSX VENTURE:QEI) announces that it has completed the previously announced sale of its Horden Lake Property to El Condor Minerals Inc. ("El Condor").

On December 19, 2011, pursuant to an amended and restated purchase agreement between Quetzal and El Condor, El Condor acquired Quetzal's interest in its Horden Lake Property. El Condor paid $2,000,000 in cash and issued 16,666,667 common shares to Quetzal at a price of $0.12 per share for a total aggregate purchase price of $4,000,000. The cash consideration (except for a $100,000 deposit that was paid prior to closing) and the El Condor common shares have been placed with an escrow agent pending receipt of final approval of the Quebec government of the transfer of certain mineral claims and satisfaction of certain other customary conditions.

As a result of the transaction, Quetzal holds a total of 16,666,667 common shares of El Condor, representing approximately 18.5 per cent of the total issued and outstanding El Condor common shares. Quetzal may purchase or sell securities of El Condor in the future depending on market conditions and other factors relevant to the investment decisions of Quetzal.

A copy of the early warning report in respect of this transaction required to be filed under securities laws can be found at www.sedar.com under El Condor's profile or can be obtained by contacting Ron MacMicken at 1150, 1122 - 4th Street S.W., Calgary, Alberta, T2R 1M1 or by the contact information provided below.

About Quetzal Energy Ltd.

Quetzal is a junior oil and gas company with its primary assets in the Llanos Basin of Colombia. The Company also has oil and gas assets in Guatemala.

Caution to Readers

Forward-looking statements relating to satisfaction of the escrow conditions and to future dealings by Quetzal with respect to El Condor securities are based on certain assumptions made by Quetzal based on its experience. These assumptions, although considered reasonable at the time of preparation, may prove to be incorrect and are based on known and unknown risks including, but not limited to, the non-satisfaction of the escrow conditions, fluctuations in market conditions, regulatory risks and certain other risks detailed from time to time in Quetzal's public disclosure documents. Quetzal undertakes no duty to update any forward-looking statements to conform such statement to actual results or to changes in Quetzal's expectations except as required by applicable 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.

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