Veraz Petroleum Announces Closing of Private Placement

CALGARY, ALBERTA--(Marketwired - June 23, 2016) - Veraz Petroleum Ltd. ("Veraz" or the "Company") (NEX:VRZ.H) is pleased to announce that it has closed its previously announced non-brokered private placement (the "Private Placement") of units ("Units") of the Company. The Company issued an aggregate of 9,850,000 Units in the Private Placement at a price of $0.05 per Unit for aggregate gross proceeds of $492,500, inclusive of 7,410,000 Units (aggregate gross proceeds of $370,500) issued today in the final tranche of the Private Placement. The Company paid a cash finder's fee of $25,935 and issued 518,700 broker warrants ("Broker Warrants") related to subscriptions for 7,410,000 Units in the final tranche of the Private Placement.

Each Unit consists of one common share ("Common Share") of the Company and one half of one Common Share purchase warrant (a "Warrant") of the Company. Each whole Warrant and each whole Broker Warrant will entitle the holder to purchase one additional Common Share ("Warrant Share") at a price of $0.10 per Warrant Share for a period of 12 months from the date of issuance.

The securities issued in this final tranche of the Private Placement are subject to a four-month hold period under applicable securities laws, which hold period expires on October 24, 2016.

Proceeds from the Private Placement will be used by the Company for evaluation costs associated with various lithium properties in Nevada, as well as general working capital.

Advisory Regarding Forward-Looking Statements

Certain information provided in this news release may constitute forward-looking statements within the meaning of applicable securities laws. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties, including the anticipated use of proceeds from the Private Placement. The intended use of the proceeds of the Private Placement by Veraz might change if the board of directors of the Company determines that it would be in the best interests of Veraz to deploy the proceeds for some other purposes. Actual results could different materially from those currently anticipated due to a number of factors and risks. The forward-looking statements contained in this news release are made as of the date hereof and except as may be required by applicable securities laws, the Company assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise. Neither the TSX Venture Exchange nor its regulation service provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this news release.