Transeuro Closes $15 Million Bond Issue

Transeuro Energy has closed its previously announced US$15 million bond financing. The Company has issued 150 bonds each with a face value of US$100,000. The Bonds will carry an interest rate of 12% per annum payable semi-annually in arrears and will mature in two years. As security, Norsk Tillitsmann ASA, the trustee for the Bond holders, has been granted a first priority pledge in the common shares of the Company's wholly-owned subsidiary, Mattson Holdings Ltd., which owns all of the Company's rights in the Beaver River Project located in northern British Columbia.

Each Bond holder has also received 50,000 common share purchase warrants (the "Warrants") exercisable into common shares of the Company at an exercise price of NOK3.40 (apprx. C$0.61) per common share. The Company has issued a total of 7,500,000 Warrants in connection with the Bond issue. The Warrants have been recorded in the Norwegian VPS and the Company will apply to have the Warrants listed for trading on the Oslo Axess. The Warrants will not be listed for trading on the TSX Venture Exchange.

The Bond Issue was arranged and placed by Pareto Securities ASA of Norway who will receive a cash commission in the amount of US$600,000.

The net proceeds of the financing will be used by the Company for general corporate purposes.


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