Transeuro Energy Corp.
TSX VENTURE : TSU
OSLO STOCK EXCHANGE : TSU

Transeuro Energy Corp.

July 02, 2009 01:19 ET

Transeuro Energy Corp. Proposed Restructuring and Debt Retirement Plan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 2, 2009) - Transeuro Energy Corp. (TSX VENTURE:TSU)(OSLO:TSU) ("Transeuro" or the "Company") announces that it has requested the loan trustee, Norsk Tillitsmann ASA, to issue a Summons to a Bondholders Meeting for its "12 per cent Senior Secured Bond Issued 2007/2009, ISIN No 001 039621.1".

A Company Update document is included with the Summons which is intended to provide an update on the financial position and operational status of the Company and its subsidiaries, as well as a summary of the restructuring efforts of the Company.

The Company is attempting to reduce its outstanding liabilities by approximately CAD $40 million as a first step prior to attracting additional funding to maintain the Company as a going concern. The full restructuring process proposed by the Company involves settlement of various liabilities and the raising of new funds through the sale of common shares in Eaglewood Energy Inc. and thereafter through issuance of equity as a private placement or rights issue.

Documents relating to the Summons and the Company Update are attached.

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 and Ukraine.

On behalf of the Board of Directors

David Worrall, CEO

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.

Denne melding til obligasjonseierne er kun utarbeidet pa engelsk. For informasjon vennligst kontakt Norsk Tillitsmann ASA



Summons Letter

To the bondholders in:


ISIN: NO 001 039621.1 - 12.00 per cent Transeuro Energy Corp. Senior
Secured Bond Issue 2007/2009 with Warrants

Summons to Bondholders' Meeting - Conversion of debt


1. Introduction

Norsk Tillitsmann ASA is appointed as loan trustee (the "Trustee") for the above mentioned bond issue (the "Loan") issued by Transeuro Energy Corp. (the "Borrower" or the "Company").

All capitalized terms used herein shall have the meaning assigned to them in the loan agreement dated 9 November 2007 (the "Loan Agreement") or this summons letter (including the Company Update) unless otherwise stated.

The information in this summons regarding the Borrower and market conditions is provided by the Borrower, and the Trustee expressly disclaims any liability whatsoever related to such information.

2. Background

In addition to this summons letter, the Borrower has provided a separate document which is intended to give an update on the Borrower's financial and operational status, as well as a summary of the full restructuring process of the Company (the "Company Update"), enclosed as Exhibit 1 to this summons. Bondholders are encouraged to read both documents.

The Company has already held discussions with a number of the largest Bondholders in preparing this proposal and approximately 50% of the Bondholders have currently agreed in principle to the Proposal contained herein.

3. The Proposal

The Company proposes the following (the "Proposal"):

3.1 Interest payments

3.1.1 Resolution adopted by the Bondholders' meeting held on 23 December 2008

The Bondholders Meeting held on 23 December 2008, accepted settlement of certain interest payments in the form of units consisting of Shares and warrants in the Borrower, as well as a reduction of the strike on existing warrants. The settlement has not been implemented and Borrower proposes to discharge the settlement plan resolved on 23 December 2008 and proposes a settlement of interest as outlined below.

3.1.2 Adjustment of the strike on warrants with ISIN NO0010397342

It is proposed that the exercise price of the existing warrants with ISIN NO001039734.2 is reduced with 50% from NOK 3.40 to NOK 1.70.

3.1.3 Interest payment due 13 November 2008

The shares and warrants were issued on 11 February 2009 however the distribution was not completed because of outstanding debts with institutions in Norway. These debts have since been cleared but by this time the Shares of Company had ceased trading on the stock exchange and the distribution cannot be completed until trading resumes.

It is proposed that the interest payment that was due on 13 November 2008 shall be settled with 10 800 000 common Shares in the Borrower, and 5 400 000 warrants, each warrant giving the right to subscribe for one common share in the Borrower at an exercise price of CAD $0.15.

3.1.4 Interest payment due 13 May 2009

It is proposed that the interest payment that was due on 13 May 2009 shall be settled with 10 800 000 common Shares in the Borrower, and 5 400 000 warrants, each warrant giving the right to subscribe for one common Share in the Borrower at an exercise price of CAD $0.15. Approval for the settlement is required from the TSX and is not expected to be withheld. The Company would anticipate that the holders will receive the share and warrant within 3 months.

3.1.5 Interest payment due 13 November 2009

It is proposed that the interest payment that becomes due on 13 November 2009 shall be settled with 10 800 000 common Shares in the Borrower, and 5 400 000 warrants, each warrant giving the right to subscribe for one common Share in the Borrower at an exercise price of CAD $0.15. Approval for the settlement is required from the TSX and is not expected to be withheld. The Company would anticipate that the holders will receive the share and warrant within 3 months.

3.2 Subsidiary Share Pledge

The Loan is currently secured with the Subsidiary Share Pledge (100% shares in Mattson Holdings Ltd. ("Mattson") that holds 50% title to the Beaver River field in Canada).

It is proposed that the Borrower shall purchase the Subsidiary Share Pledge for a one off payment to the Bondholders (implying that the Loan thereafter shall be unsecured). The one off payment to the Bondholders shall consist of:

a) a cash payment of USD $3 million, and

b) 20 million new warrants, each warrant giving the right to subscribe for one common Share of the Borrower. The exercise price of the warrants shall be equal to the average of the Volume Weighted Average Price (VWAP) on TSX Venture Exchange on the 10 days trading after the date of the Bondholders' meeting, always provided that if the share price trades above the warrant price for 15 consecutive days then holders shall have a further 30 days to exercise the warrant or the warrant shall expire. Further conditions may be required by the TSX.

3.3 Conversion of the Loan to Equity

It is proposed that the entire Remaining Loan, USD $15 million (unsecured debt after the Borrower buys back the security) shall be converted into common Shares of the Borrower at CAD $0.2 per share, thereby issuing approximately 89 million Shares. The applicable exchange rate shall be the closing price of the Bank of Canada on the day of the Bondholders' meeting.

4. Conditions for the Proposal

The Proposal is conditional upon the following is fulfilled no later than 10 October 2010:

a) The Borrower raising additional funds to pay the cash element of the settlement Proposal. The Company is preparing to sell 13.5 million (approximately 50%) of its shareholding in Eaglewood Energy Inc. The current share price is around CAD $0.8 and the sale is expected to raise approximately CAD $10 million, of which CAD $4 million is required to pay down 50 % of the debenture against which the Eaglewood shares are used as security. The remaining funds after paying off the cash portion of the restructuring proposal will be used to secure assets in Ukraine. The funds should be available within 2 months after the date of the Bondholders' meeting, and

b) The Borrower raising a minimum of USD $5 million through a new share issue, with a minimum price of CAD $0.1. The new share issue shall be fully paid in within 3 months after the date of the bondholders meeting, and

c) Other creditors of the Borrower (as set out in the Company Update) shall accept the Restructuring Plan described in the Company Update. The Restructuring Plan shall be carried out and fully implemented within 3 months, and

d) No new information is disclosed before the implementation of the resolution, resulting in a major adverse effect in the premises upon which the restructuring is based.

The Proposal shall be carried out immediately upon the fulfillment of the aforesaid condition (but in any circumstance no later than 10 Banking Days after the fulfillment of the conditions set out in a) to c) above).

5. Remarks to the Proposal

5.1 Remarks to the Proposal by the Borrower

The Borrower informs that it believes that it can offer all its stakeholders, including its bondholders, greater value by pursuing a restructuring rather than bankruptcy and is seeking support for this proposal. Further that the Borrower holds a portfolio of oil and gas exploration and production assets that have potential to produce large amounts of oil and gas in the future and to return material value to its present shareholders and to those new shareholders added through the proposed restructuring.

The Borrower advises that finalizing a full settlement as described herein is conditional on a number of factors, including: the acceptance by majority of affected parties as defined by various agreements; raising the necessary cash involvement in the settlement and to fund the Borrower going forward; to possibly entering creditor protection; to the approval of the Board of directors of the Borrower and approvals from the TSX Venture and Oslo stock exchanges.

The Borrower considers the option of bankruptcy as an undesirable alternative. The Borrower then expects that the Bondholders will claim title to the Subsidiary Share Pledge; the shares in Mattson, and thereby to 50% of the Beaver River field and surrounding acreage in British Columbia, Canada.

The Borrower believes significant reserves and production potential exists at Beaver River but the field is complex and challenging and requires the resources and expertise of an oil and gas company to deliver results. The Borrower considers that the Bondholders will ultimately receive more value by supporting the restructuring and allowing the Borrower to continue appraisal and development activities.

The Borrower further informs that there is a need for liquidity. Firstly, Mattson owes an operating debt of approximately CAD 3 million to the license partner 'Questerre' resulting from the cost of operations performed in 2007 and 2008 that have not been recovered from production revenue due to the depressed gas prices over the last 12 months. Following settlement with Bondholders the Company intends to farm out some of its interest in Beaver River with part of the proceeds used to settle the operating debts. In addition the Borrower is required to fund 50% of an abandonment fund that requires and additional contribution of approximately CAD $1 million. Further, the Borrower anticipates that Questerre will call for funds of between CAD $1 million to $2 million this summer for additional operations in the field.

Total obligations going forward are therefore in the range of CAD $6 million. Recent low gas prices in Canada over the last 12 months have reduced revenues from the existing production wells. The field is therefore not presently a commercial concern of realizable value to the bondholders.

In the event that a minority of creditors does not accept the settlement proposal, the Borrower informs that it may elect to file for protection in Canada having already secured the requisite percentage of acceptances as required by Canadian law, such that the courts quickly enforce the settlement on the remaining creditors.

5.2 The Trustee's evaluation of the Proposal

The Trustee notes that the restructuring proposal involves a cash payment to the Bondholders, and that the proposal offers a temporary solution to the most pressing issues of the Borrower.

On the other hand, the Proposal leaves existing shareholders with an unusually high percentage of ownership without any injection of considerable new capital.

Taking into account that the Bondholders are asked to accept a write off of their claims (by way of converting above the market price of the Shares), the existing equity of the Borrower is in principle lost. Further, it should be noted that the proposed restructuring only offers a short term solution to the most immediate financial problems of the Borrower.

The Bondholders are further asked to give up their position as secured creditors and become shareholders, which weaken their position considerably in the event of another subsequent restructuring.

On the basis of the proposed restructuring only constituting a short term solution, the question of the outcome of another subsequent restructuring involves considerable risk. The imminent cash calls could bring about a need for a new restructuring within a short time period.

The request is put forward to the Bondholders without further evaluation or recommendations from the Trustee. The Bondholders must independently evaluate whether the proposed changes are acceptable.

It is recommended that the Bondholders consult with their own financial, legal and tax advisors to evaluate the consequences of the Proposal.

The Loan Trustee also points out that the Proposal is a proposal presented to the Loan Trustee by the Borrower and that the Loan Trustee has not been involved in negotiations or had any influence on the Proposal.

6. Bondholders' Meeting

To enable the Borrower to conduct the proposed change of the Loan Agreement, the Borrower has requested the Loan Trustee to summon a Bondholders' meeting to consider the approval of the proposed changes.

Bondholders' meeting:

Bondholders are hereby summoned to a Bondholders' meeting:



Place: The premises of Norsk Tillitsmann ASA,
Haakon VIIs gt 1, 01061 Oslo - 7th floor

Agenda:

1. Approval of the summons.
2. Approval of the agenda.
3. Election of two persons to co-sign the minutes together with the
chairman.
4. Request for change of the Loan Agreement:


It is proposed that the Bondholders' meeting resolve the following:

The Bondholders' meeting approves the Proposal as described in Clause 3, subject to the conditions stated in Clause 4, in the summons for this Bondholders' meeting.

The Loan Trustee is given the power of attorney to enter into the necessary agreements in connection with documenting the decisions made by the Bondholders' meetings as well as to carry out the necessary completion work, including to make other necessary amendments of the Loan Agreement and to collect necessary legal opinions on the transaction and the payment structure and the tax consequences thereof.

The Loan Trustee is also given the authority to subscribe for shares and warrants on behalf of each Bondholder in connection with the conversion according to the Proposal.

To approve the above resolution, Bondholders representing at least 2/3 of the Bonds represented in person or by proxy at the meeting must vote in favour of the resolution. In order to have a quorum, at least 5/10 of the voting Bonds must be represented at the meeting. If the proposal is not adopted, the Loan Agreement will remain unchanged.

Please find attached a Bondholder's Form from the Securities Depository (VPS), indicating your bondholding at the printing date. The Bondholder's Form will serve as proof of ownership of the Bonds and of the voting rights at the bondholders' meeting. (If the bonds are held in custody - i.e. the owner is not registered directly in the VPS - the custodian must confirm; (i) the owner of the bonds, (ii) the aggregate nominal amount of the bonds and (iii) the account number in VPS on which the bonds are registered.)

The individual bondholder may authorise the Norsk Tillitsmann to vote on its behalf, in which case the Bondholder's Form also serves as a proxy. A duly signed Bondholder's Form, authorising Norsk Tillitsmann to vote, must then be returned to Norsk Tillitsmann in due time before the meeting is scheduled (by scanned e-mail, telefax or post - please see the first page of this letter for further details).

In the event that Bonds have been transferred to a new owner after the Bondholder's Form was made, the new Bondholder must bring to the Bondholders' meeting or enclose with the proxy, as the case may be, evidence which the Trustee accepts as sufficient proof of the ownership of the Bonds.

For practical purposes, we request those who intend to attend the bondholders' meeting, either in person or by proxy other than to Norsk Tillitsmann, to notify Norsk Tillitsmann by telephone or by e-mail (at set out at the first page of this letter) within 16:00 hours (4 pm) (Oslo time) the Banking Day before the meeting takes place.

Yours sincerely

Norsk Tillitsmann ASA

Jens Yngvar Samuelsen

Exhibit 1: Company Update

To the Bondholders in the "12.00 per cent Transeuro Energy Corp. Senior Secured Bond Issue 2007/2009 with Warrants" with ISIN NO 001 039621.1

Background information to the summons letter to the Bondholders' meeting

1. Introduction

This Company Update has been prepared in connection with the upcoming Bondholders' meeting in the in the above-mentioned bond issue (the "Bonds").

In addition to this Company Update, Norsk Tillitsmann has prepared a separate summons letter (the "Summons Letter"). Bondholders are encouraged to read both documents in addition to the Loan Agreement, available with the trustee NT at + 47 22 87 94 00.

2. Background

Transeuro Energy Corp. (the "Company" or "Transeuro") 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 and Ukraine. The Company also owns 47% of the shares of 'Eaglewood Energy Inc' that holds title to 4 exploration licenses in Papua New Guinea.

Transeuro has been short of operating cash following the notice of purported withdrawal of RAG from the Scythian Joint Venture Company on October 30th 2008, when RAG defaulted on payment of USD $3 Million as the final part of the purchase price and did not pay their share of costs for Scythian Energy and Ukrainian subsidiaries. The parties are now moving forward with arbitration in Amsterdam under the ICC Rules in an attempt to resolve the dispute. Ukraine drilling operations were suspended until the dispute is resolved and replacement funding obtained. The resulting cash shortage has restricted Transeuro's ability to maintain normal business functions. Over the last few months the Company has sold moveable assets where possible, closed offices where appropriate and reduced headcount to retain only core personnel. The Company has a number of long term trade creditors who have commenced litigation against the Company, and discussions are proceeding with such creditors to settle their outstanding amounts for shares and to allow the Company more time to complete a restructuring and to obtain additional funding.

Transeuro did not file its annual audited financial statements which were due at the end of March with the British Columbia and Alberta Securities Commissions and as a result was suspended from trading on the Toronto Venture Exchange and was placed under special observation by the Oslo Bors. The audit was not completed because the Company did not have funds to pay its auditor.

In early May 2009, the Company arranged for the sale of 2,857,140 of its shares in Eaglewood Energy Inc. ("Eaglewood"). The Eaglewood shares were subject to an existing escrow agreement whereby they could not be traded before October 11, 2010 and were sold by Transeuro at CAD $0.28, being a discount of 50% of the closing price on April 27, 2009 of CAD $0.56 to reflect the urgency of sale and the 18 month escrow restrictions. The receipt from the transaction was approximately CAD $800,000 and the funds were used to commence the 2008 audit and reserves report that were filed on June 4th, 2009. The remaining funds are being used to fund the Company and to maintain title to the main assets.

Eaglewood has issued 2 press releases providing details on the farm out of 2 of the 4 exploration blocks. On April 23rd, 2009, Eaglewood announced a farm in to Block 260 by Oil Search Ltd., to complete a seismic programme during 2009 to earn 10% of the block, and then the possible drilling of a well that is funding 90% by Oil Search to increase their working interest up to 70%. On June 3rd, 2009, Eaglewood announces a combination of farmout agreements relating to its block 259 and the adjacent Petroleum Retention Licenses 4 and 5 whereby Eaglewood will receive USD $15,000,000 and a 25.103 percent interest in PRL 5 from Mega in exchange for a 65 percent interest in PPL 259. Mega will fund up to USD $20,000,000 of the cost of drilling Ubuntu-1, the first exploration well in PPL 259, by December 31, 2009 and will fund up to USD $20,000,000 to drill a well in PRL 5 by December 31, 2010. PRL 5 is located in the middle of PPL 259 and contains the Elevala and Ketu natural gas and natural gas liquids discoveries. Eaglewood will also receive an option to acquire up to a 10 percent interest in PRL 4 from Mega. PRL 4 is located in the north western corner of PPL 259 and contains the Stanley natural gas and natural gas liquids discovery.

To resolve the funding situation in Ukraine the Company has retained advisors to approach various potential partners.

- The Company retained Stellar Energy Advisors from London to locate an oil and gas operating company to farm in to the Company's Ukraine assets in order to fund the completion of the Karlavskoye 101 well. A number of companies have shown interest and are reviewing the technical information.

- The Company has engaged the US Investment Bank, WoodRock and Co., to provide financial advisory and investment banking services to secure funding for the continued development of Scythian Energy BV from sources other than existing Oil and Gas companies. It is envisaged that funding will be sourced from institutional or private investors, likely from North America.

The Company has engaged DLA Piper to represent its interests in the Arbitration proceedings at the International Chamber of Commerce where the Company is disputing the right of withdrawal from the Ukraine joint venture received from RAG in October 2008. The Company has filed its response to the request for arbitration issued by RAG.

The Ukraine authorities have put the Company on notice that it should resume investment in its Crimean assets to ensure their support for the renewal of the Karlavskoye license in July 2007 to its partner Crymgeology and continuation of the Joint Activity Agreements (JAA's). Activities are underway to secure additional funding from third parties but these activities are affected by the ongoing arbitration with RAG. The Company is in discussion with the Ukraine authorities on the forward plan.

The longer term strategy announced by the Company is to develop all its assets without using substantial new funds, by bringing in partners to fund ongoing work programmes, and therefore to reduce the working interest held by Transeuro. An exception may be the Karl 101 sidetrack in Ukraine where the Company may raise funds of USD $6million to complete the sidetrack and testing of the well in a timely manner to satisfy the Ukraine authorities.

3. The Full Restructure Process

Transeuro has the following liabilities as of end Q1 2009 (CAD$):



Current liabilities
Bonds payable $ 18,605,166
Accounts payable and accrued liabilities 20,478,216
Advances payable 2,837,925
Convertible debts 7,023,867
Due to related parties 243,736
----------------
49,188,910

Interest payables 1,559,031
Future income tax liability 2,023,526
Asset retirement obligations 1,690,139
Non-controlling interest 6,791,639
----------------
TOTAL $ 61,253,245
----------------



Full accounting details are available in the Q1 2009 unaudited interim report.

The Company is attempting to reduce outstanding liabilities by approximately CAD $40 million as a first step prior to attract additional funding to maintain the Company as a going concern. The full restructuring process proposed by the Company involves settlement of the various liabilities and the raising of new funds through the sale of shares in Eaglewood Energy Inc ("Eaglewood") and thereafter through issuance of equity as a private placement or rights issue (the "Restructuring Plan"). The Restructuring Plan is condition upon all stakeholders approving the Restructuring Plan as set out below.

The Company provides the following description of different offers to certain groups of creditors:

The Company has made an offer to settle secured debt of CAD $17.8 million with the holders of the Bonds as follows: firstly, to buy the security assets of the Bonds for USD $3 million in cash and 20 million warrants, priced at the average closing price on the TSX Venture Exchange on the 10 trading days following the date of the Bondholders meeting, and thereafter settle the unsecured debt in shares at CAD $0.2 per share. This will result in issuing approximately 89 million shares and 20 million warrants.

The Company has made an offer to settle unsecured debt of CAD $6.2 million with Trade Creditors and Consultants in shares at CAD $0.2 per share. This will require issuing approximately 31 million shares, depending on final exchange rates.

The Company has made an offer to settle unsecured debt of CAD $1.24 million to staff for unpaid salaries and expenses, in shares at CAD $0.1 per share. This will result in issuing approximately 12.4 million shares.

The Company has agreed a settlement with High Arctic Energy Services (HAES) management, subject to approval of the Boards, to set aside the outstanding litigation with the payment by TSU to HAES of CAD $500,000 in cash and 10 million ordinary TSU shares. The settlement also provides that HAES will be entitled to 50% of the net proceeds arising on any future sale of the rig in Armenia.

The Company has made an offer to the Series A and B debenture holders to sell 13.5 million (approximately 50% of the total number of shares held by Company) of shares in Eaglewood and to make an early repayment of half the outstanding, being CAD $2 million of each debenture A and B. In addition the Company will pay the full November & December 2009 interest payment in cash. The remaining CAD $2 million of each debenture A and B will remain secured against the other 13,642,860 Eaglewood shares held by the Company.

The principals used in developing the Restructuring Plan are as follows:

The settlement to creditors is structured in a manner that management believes offers the greatest possibility of recovering full repayment of their outstanding amounts in due course. The share price used in the settlement is derived from the historical price during the summer of 2008 that is considered a better reflection of the asset values, and assuming the higher number of shares outstanding as a result of these restructuring proposals. Management believes that following this restructuring the share price will align more closely its underlying valuations and return full or at least a majority of the value to its creditors.

To retain the support of existing shareholders so they will support a subsequent fund raising to provide additional cash to continue developing the Companies main assets in Ukraine and Canada.

Provide full disclosure and transparency in discussions with the various groups of creditors so that all parties appreciate the overall restructuring proposal and to settle 'unsecured debt' similarly across the various groups. The offers made to each class of creditor to 'buy out' their security are transparent and open to scrutiny. The exception is for staff of the Company which has been offered preferential terms to settle USD$1.24 million of unpaid salaries and expenses, reflecting their relationship with the Company.

The anticipated shareholding post-Restructuring Plan depends on a number of factors (principally on exchange rates and the amount of a future equity raise and assumes an equity raise on USD $5 million at an issuance price of CAD $0.1). On an undiluted basis is anticipated to be in the range of:



----------------------------------------------------------------------------
No of Shares Fraction
Shareholders (million) %
----------------------------------------------------------------------------
Existing shareholders 224 49.8
----------------------------------------------------------------------------
Bondholders 111 24.6
----------------------------------------------------------------------------
Trade Creditors, Consultants & Staff 43 9.5
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High Arctic Energy Services 10 2.2
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New equity holders 62 13.8
----------------------------------------------------------------------------
Total 450 100%
----------------------------------------------------------------------------

On a fully diluted basis is anticipated to be in the range of:

----------------------------------------------------------------------------
No of Shares Fraction
Shareholders (million) (%)
----------------------------------------------------------------------------
Existing shareholders 224 41
----------------------------------------------------------------------------
Existing Warrant holders (strike at CAD $0.14) - 52.6 9.6
----------------------------------------------------------------------------
Existing Options 13.7 2.5
----------------------------------------------------------------------------
Bondholders 111 20.3
----------------------------------------------------------------------------
Warrants issued to the Bondholders
(strike at CAD $0.15) 30.8 5.6
----------------------------------------------------------------------------
Trade Creditors and Consultants 43 7.8
----------------------------------------------------------------------------
High Arctic Energy Services 10 1.8
----------------------------------------------------------------------------
New equity holders 62 11.4
----------------------------------------------------------------------------
Total 547.1 100%
----------------------------------------------------------------------------
(i)Assuming an equity raise on USD $5 million at an issuance price of
CAD $0.1


4. Further Strategy of the Company

The Borrower reiterates the long term strategy to farm down the interest held in the various assets and to introduce new partners to provide the funding to continue developments through to commercial production. Discussions are ongoing with Companies interested in providing the ongoing funding for Ukraine and Canada.

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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