Junex to Issue a Max $5 Million Private Placement

Junex Inc. intends to issue a maximum of 3,846,154 units in the context of a private placement, subject to regulatory approvals. Each unit, to be issued at a price of $1.30 is comprised of one flow-trough common share and one-half of a common share purchase warrant. Each whole warrant will entitle its holder to acquire one additional common share of Junex for a period of two years from closing of the offering at a price of $1.60 per share. Total gross proceeds from the private placement are expected to reach a maximum amount of $5 million. The agents have also been granted an over-allotment option to increase the number of units offered up to 15% of those units issued as part of the offering, at the same price, which option is to be exercised no later than 30 days from closing.

The units issued pursuant to the private placement will be subject to a four-month plus one-day "hold period" under applicable securities legislation. The offering will be conducted through a syndicate of agents led by Laurentian Bank Securities Inc. and also comprised of Canaccord Capital Corporation and D&D Securities Company, and shall collectively receive a cash remuneration equal to 6.5% of the gross proceeds raised from the offering in addition to common share purchase warrants exercisable into common shares of Junex equal to 6.5% of the number of units sold as part of the offering, at a price of $1.30 per common share, to be exercised during a period of two years from closing.

Junex will use the proceeds of the placement to pursue oil and gas exploration work in Quebec, including on its 1-million acre Baie des Chaleurs project, where many important structures have already been identified by seismic data and where recent drilling provided favorable indications as to the oil and gas potential of the area. Exploration work will also be performed in the region of Becancour, where Junex holds land rights in the vicinity of the Gentilly prospect drilled by Talisman and Questerre Energy earlier this year. Finally, Junex also expects to use the proceeds of the placement to develop the Haldimand oil project where an oil discovery was made in 2006.


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