Veraz Petroleum Announces Private Placement

CALGARY, ALBERTA--(Marketwired - May 20, 2016) -

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

Veraz Petroleum Ltd. (NEX:VRZ.H) (the "Company") announces a non-brokered private placement of 10,000,000 units (the "Units") at a price of $0.05 per Unit (the "Offering"). Each unit will consist of one common share of the Company ("Common Share") and one half of one Common Share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder to purchase one additional Common Share ("Warrant Share") at an exercise price of 10 cents per Warrant Share for a period of 12 months from the date of closing. The net proceeds from the Offering will be used by the Company for evaluation costs associated with various lithium properties in Nevada, as well as general working capital. The Company intends to close the Offering as soon as practicable.

The Offering, including the future issuance of the Common Shares and Warrants, is subject to the final approval of the TSX Venture Exchange. All securities issued will be subject to a hold period of four months and one day pursuant to applicable securities laws.

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.

These securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.