Yangarra Resources Ltd.

Yangarra Resources Ltd.

June 19, 2009 17:06 ET

Yangarra Announces Credit Facility Update

CALGARY, ALBERTA--(Marketwire - June 19, 2009) -


Yangarra Resources Ltd. ("Yangarra" or "the Company") (TSX VENTURE:YAN) announces that it has renewed its senior credit facility effective June 16, 2009.

The terms of the revised credit facility include an increased interest rate, monthly principal payments, additional covenants and review date of October 15, 2009. Yangarra has also arranged for the monthly interest payments of its mezzanine debt, as well as the salary of its senior executive to be paid by the issuance of common shares of the Company (the "Yangarra shares"), subject to TSX Venture Exchange Inc. ("TSX Venture") approval.

In addition, Yangarra will enter into a farm out agreement with a new company created by management ("Newco") to drill a minimum of two natural gas wells by July 31, 2009 using industry standard farm out terms. These terms include Yangarra receiving all of the benefits of the drilling royalty credit program provided by the Alberta government. Under this program the Company will receive a credit of $200 per meter drilled which will be used to reduce up to 50% of ongoing royalty obligations by the Company. Any shareholder of Yangarra that is an accredited investor should contact Gordon Bowerman at 403-237-2361 or gord@yangarra.ca for further information regarding participation in Newco.

The Company will list and sell assets commencing September 1, 2009, as needed to generate cash for debt reduction.

Yangarra has also approached its unsecured creditors with an offer to settle unsecured debt by the issuance of Yangarra Shares at a deemed price of $0.06 per share, subject to TSX Venture approval or alternatively extending the current repayment terms.

Forward-Looking Statements: This news release contains statements about future events that are forward looking in nature and, as a result, are subject to certain risks and uncertainties such as changes in plans or the occurrence of unexpected events. Actual results may differ from the estimates provided by management.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

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