Chaco Resources Raises £4 Million in Placement

Chaco Resources Plc (AIM: CHP), the oil and gas explorer and developer focused in South America, has raised £4m before expenses, through the Placing of 26,666,667 new ordinary shares at 15 pence per share. The Placing has been effected to fund the Company's latest commitments in relation to its South American exploration and development program and to provide the Company with further working capital.

The Placing is conditional on the new shares being admitted to AIM, admission is expected to occur on May 19, 2006. The new Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares which are currently traded on AIM. Following admission there will be up to 534,134,554 Ordinary Shares in issue.