Transeuro Energy Corp.

Transeuro Energy Corp.

April 12, 2006 08:47 ET

Transeuro Announces Flow-Through Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 12, 2006) - Mr. Hal Hemmerich, President and Chief Executive Officer of Transeuro Energy Corp. (the "Company")(TSX VENTURE:TSU), is pleased to announce that a financing has been arranged with a syndicate of investment dealers, led by Dundee Securities Corporation and including Haywood Securities Inc. and Westwind Partners Inc. (the "Agents"), to sell by way of private placement up to 6,272,500 flow-through common shares (the "Flow-Through Common Shares") at a price of $2.79 per Flow-Through Common Share to raise gross proceeds of up to $17,500,275. The Agents have agreed to sell 1,792,200 Flow-Through Common Shares ($5,000,238) on a guaranteed agency basis with the balance being sold on a best efforts basis. The Company has also agreed to grant the Agents an over-allotment option to increase the offering by 896,100 Flow-Through Common Shares for additional gross proceeds of up to $2,500,119. The Agents will be paid a commission of 7.0% of the gross proceeds received by the Company under the financing and will receive warrants entitling the Agents to acquire, for a period of 18 months at a price of $2.35 per common share, that number of common shares equal to 5.0% of the number of Flow-Through Common Shares sold.

The proceeds raised under the financing will be used by the Company to further advance its Beaver River Project in Northeast British Columbia. The offering is scheduled to close on or about May 3, 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 four-month hold period 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.

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.

Contact Information