Amarone Closes Oversubscribed Equity Financings of $77 Million

Amarone Oil & Gas Ltd. has successfully closed two equity financings for a total of $77 million in gross proceeds.

The first financing was a previously announced non-brokered private placement financing of $50,000,001 (the "KERN Financing") with KERN Energy Partners Management II Ltd. ("KERN"), structured as an equity line at a price equal to $1.50 per unit. Each unit ("Unit") consists of one special voting share of the Corporation and one Put and Call Obligation.

The second financing was an oversubscribed $27,000,600 brokered private placement financing ("Syndicate Financing") through a syndicate of agents led by FirstEnergy Capital Corp. and including Paradigm Capital Inc. (collectively, the "Agents"). The Corporation issued 8,408,000 common shares of Amarone, at a price of $1.50 per common share and 354,000 common shares issued on a "flow-through" basis at a price of $1.90 per flow-through share for total gross proceeds of $13,284,600. In addition, 9,144,000 Units of Amarone were subscribed for under an equity line by major investors ("Major Investors"), at a price of $1.50 per Unit for total gross proceeds of $13,716,000. Similar to the KERN Financing each Unit consists of one special voting share of the Corporation and one Put and Call Obligation.

After giving effect to these financings, Amarone has approximately 11,935,300 common shares issued and outstanding. Upon all common shares being issued under the KERN and other equity lines, the Corporation will have 54,412,634 common shares outstanding.

Proceeds from this offering will be used to pursue future strategic acquisition opportunities and will be used to fund the Corporation's exploration and development program.


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