Sonoro Energy Ltd.
TSX VENTURE : SNV

Sonoro Energy Ltd.

December 16, 2010 08:58 ET

Sonoro Energy Announces $10 Million Private Placement

CALGARY, ALBERTA--(Marketwire - Dec. 16, 2010) -  

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

Sonoro Energy Ltd. ("Sonoro" or the "Company") (TSX VENTURE:SNV) is pleased to announce that it has received significant interest in its $5 million non-brokered private placement announced December 6, 2010. As a result of this interest, Sonoro has entered into an agreement with a syndicate led by Macquarie Capital Markets Canada Ltd. for a best efforts private placement (the "Offering") of up to an additional 40,000,000 units at a price of $0.25 per unit for gross proceeds of up to Cdn $10,000,000. Each unit is to be comprised of one common share ("common share") and one-half of one warrant, with each whole warrant exercisable into one common share for a period of one year after closing at an exercise price of $0.50 per share. 

As stated above, the Offering is in addition to the non-brokered private placement announced by the Company on December 6, 2010, under which management and insiders intend to subscribe for a minimum of 4,000,000 units ($1,000,000). In the event that the Offering closes within 30 days of the non-brokered private placement, the one year term of the warrants issued under the non-brokered private placement will be extended such that the expiry date of those warrants is the same as the one year expiry date of the warrants issued under the Offering.

The net proceeds from the Offering will be used to advance the Company's project in the Republic of Iraq, including shallow drilling activities, seismic and data acquisition, topping facilities engineering and for general working capital requirements, including the ongoing development of the Company's technologies. The Company has also agreed to pay to the agents a cash commission equal to 6% of the gross proceeds of the Offering. Closing of the Offering is subject to the satisfaction of standard conditions, including the receipt of all necessary regulatory and TSX Venture Exchange approvals. The securities issued pursuant to this Offering will be subject to a four-month hold period. The securities will not be registered with the U.S. Securities and Exchange Commission and may not be offered or sold within the United States without registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933 and any applicable state securities laws.

Sonoro Energy Ltd. has 129,357,454 common shares outstanding, and trades on the TSX Venture Exchange under the symbol SNV.

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.

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