Transeuro Energy Corp.

Transeuro Energy Corp.

October 31, 2006 01:00 ET

Transeuro Announces $8.1 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 31, 2006) - Mr. Hal Hemmerich, President and Chief Executive Officer of Transeuro Energy Corp. (the "Company") (TSX VENTURE:TSU), is pleased to announce that a non-brokered financing has been arranged. The Company will sell by way of private placement up to 6,000,000 Units at a price of $1.35 per Unit to raise gross proceeds of up to $8,100,000. Each Unit will consist of one common share and one transferable common share purchase warrant ("Warrant"). Each Warrant shall be exercisable into a common share of the Company at a price of $1.75 per common share for a two year period following the closing. If, following four months from the closing, the Company's common shares close at or above $1.75 for a period of thirty consecutive trading days, then the Company will have the option to accelerate the expiry date of the Warrants to that date which is not less than ten business days from the date the Company provides written notice to the Warrant holders of the early expiration date.

The Company will pay a finders fee in accordance with the policies of TSX Venture Exchange.

The proceeds raised under the financing will be used by the Company to further advance its exploration-development properties and for general working capital. The offering is scheduled to close on or about November 7, 2006. The offering is subject to all required regulatory approvals, including acceptance for filing by the TSX Venture Exchange. All securities issued in connection with the offering will be subject to a resale restrictions in accordance with applicable securities laws.

Transeuro Energy Corp. is involved in the acquisition of petroleum and natural gas rights, the exploration for, and development and production of crude oil, condensate and natural gas. The Company's properties are located in Canada, Armenia, Papua New Guinea and Ukraine.

Harold Hemmerich, President and CEO

This press release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from the targeted results. The Company relies upon litigation protection for forward-looking statements.

The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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