Reef Resources Ltd.
TSX VENTURE : REE

Reef Resources Ltd.

May 18, 2010 10:16 ET

Reef Resources Ltd. Announces Shares for Debt Settlements

CALGARY, ALBERTA--(Marketwire - May 18, 2010) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES.

Reef Resources Ltd. (TSX VENTURE:REE) ("Reef" or the "Company") is pleased to announce it has reached agreements with management members, a consulting geologist and one key creditor for the settlement of $387,306 in debt at $0.075 per share. Reef will be filing for approval with the TSX Venture Exchange to issue 5,049,081 in common shares for the settlement of the outstanding debt. 

Reef will issue a press release when the approval has been received and when the shares have been issued.

"We appreciate the vote of confidence that management and creditors have cast in the future of our company. The debt settlement will have a positive impact on our balance sheet" said Arnie Hansen, President, Reef Resources Ltd.

Reef was formed to participate in the exploration, development and production of conventional crude oil and natural gas reserves in Ontario and western Canada. The Company's strategy is to build shareholder value through internally generated exploration and development drilling and through selective acquisitions. Reef recently announced an agreement for a $1.65 million no interest loan financing facility from Solo Oil Plc to develop its property in Ontario.

Forward Looking Statements — This news release contains certain forward-looking statements, which include assumptions with respect to raising funds and future capital expenditures. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither 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

  • Reef Resources Ltd.
    Arnie Hansen
    President & CEO
    (403) 251-9447
    (403) 251-9553 (FAX)
    or
    Reef Resources Ltd.
    Tariq S. Malik CA
    CFO
    (403) 975-6242
    (403) 251-9553 (FAX)