SOURCE: Simba Energy Inc.

May 19, 2010 05:11 ET

Simba Energy Announces Increase in Private Placement

VANCOUVER, BC--(Marketwire - May 19, 2010) - Simba Energy Inc. (the "Company") is pleased to announce an increase of its non-brokered private placement.

Pursuant to a news release dated April 14, 2010 the Company announced, subject to the approval of the TSX Venture Exchange, a private placement of up to 14,285,715 units at $0.07 per unit ("Units") for total gross proceeds of up to $1,000,000. Each Unit consists of one common share and one transferable share purchase warrant, each warrant exercisable into an additional common share for a period of two years at a price of $0.15 per share. The private placement has been increased up to 28 million Units for gross proceeds of $1,960,000. The Company has received all subscriptions and intends to file and seek approval from the TSX Venture Exchange immediately.

The proceeds of the placement will be used for general working capital.

Finder's fees may be payable in whole or part on the private placement in accordance with the policies of the TSX Venture Exchange.

Simba Energy President and CEO Robert Dinning commented, "The Company is pleased to see the level of market enthusiasm in being a part of this private placement. With our refocused and aggressive targeted strategy being received so positively by the market, the new management team at Simba Energy is looking forward to utilizing our treasury in order to build maximum shareholder value."

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Statements in this release that are forward-looking statements, including the amount of the offering and its completion, are subject to risks and uncertainties, including those specific factors disclosed under the heading "Risk Factors" and elsewhere in the company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward-looking statement except in compliance with applicable securities laws.

About Simba Energy Inc.

Simba Energy, Inc. (TSX-V: SMB) (FRANKFURT: GDA) is an oil and gas exploration company focused on hydrocarbon opportunities in Africa. Simba Energy has already secured a Hydrocarbon Reconnaissance Permit in Liberia which extends over an area of 1,366 sq. kms and covers the entire onshore extent of the Robert-Bassa Basin.

The Company's shares are listed on the TSX Venture Exchange under the symbol SMB as well as the Frankfurt Stock Exchange under the symbol GDA.

On Behalf of the Board,

"Robert Dinning"

President and CEO

Contact Information

  • For further information, contact
    Robert Dinning
    President and CEO of the Company at:
    rdinning@simbaenergy.ca
    Telephone: (604) 641-4450
    Facsimile: (604) 669-9335

    1130 - 789 West Pender Street
    Vancouver BC V6H 1H2 Canada
    Telephone +1 604 641 4450
    Fax +1 604 669 9335
    Toll Free +1 866 669 9377
    www.simbaenergy.ca