Wedge Energy International
CNSX : WEG

July 12, 2010 12:44 ET

Wedge Announces Non-Binding Letter of Intent for Business Combination

OTTAWA, ONTARIO--(Marketwire - July 12, 2010) - THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO U.S. NEWSWIRE SERVICES.

Wedge Energy International Inc. ("WEG" or the "Company") (CNSX:WEG) announces that it has signed a non-binding letter of intent (the "Letter of Intent") with a private oil and gas exploration company ("Targetco") providing for a proposed business combination (the "Merger") whereby WEG would acquire all of the issued and outstanding Targetco common shares in exchange for common shares in the capital of WEG.

The completion of the Merger is subject to a number of conditions precedent including, among other matters, due diligence reviews by each party; the approval of the board of directors of each company to enter into a binding definitive agreement, a proposed consolidation of the share capital of WEG on a 20 old share for 1 new share basis; the completion of a financing to provide WEG with working capital; and both shareholder and regulatory approval. As such, there can be no assurances that Company will enter into a binding Definitive Agreement or complete the Merger.

Targetco owns a 20% beneficial interest in a Production Sharing Contract covering an oil and gas exploration concession in the Middle East.

In the event the Company and Targetco enter into a binding definitive agreement, the Company will provide further information on the terms of the Merger, Targetco and technical information on Targetco's assets, based upon a independent technical report prepared in compliance with National Instrument 51-101, to be commissioned by the Company as part of its due diligence.

Further the Company announces that Mr. Robin Dow, has resigned as the Chief Executive Officer, Chairman and as a director of the Company. The Company will announce Mr. Dow's replacement in due course.

"The statements in this Press Release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The CNSX has not approved or disapproved of the information contained in this Press Release."

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