Vast Exploration Enters into $15MM Bought Deal Financing

Vast Exploration has entered into an agreement with a syndicate of underwriters co-led by Canaccord Capital Inc. and GMP Securities L.P. and including Haywood Securities Inc. and Genuity Capital Markets (collectively the "Underwriters") which have agreed to purchase, on a bought deal basis, 20,000,000 special warrants of Vast at a price of $0.75 per special warrant, for aggregate gross proceeds of $15,000,000.

In addition, the Underwriters have been granted an over-allotment option, which may be exercised until closing of the offering (the "Closing"), to purchase up to 13,400,000 additional special warrants at a price of $0.75 per special warrant. If the over-allotment is fully exercised, gross proceeds from the offering will be approximately $25,000,000.

Each special warrant will entitle the holder thereof to receive one common share of the Company on the exercise or deemed exercise of the special warrant. The special warrants will be exercisable by the holder at any time after the Closing for no additional consideration and all unexercised special warrants will be deemed to be exercised on the earlier of (a) four months and a day following the Closing, and (b) the third business day after a receipt is issued for a final prospectus by the securities regulatory authorities in each of the Provinces where the special warrants are sold qualifying the common shares to be issued upon the exercise of the special warrants. The Company shall use its reasonable best efforts to obtain such receipt for a final exercise of the special warrants within 30 days of Closing. Until the receipt is issued for such prospectus, the special warrants as well as the common shares issuable upon exercise thereof will be subject to a four month hold period under applicable Canadian securities laws.

Vast intends to use the net proceeds from the Offering to further fund its commitments and exploration program on the Qara Dagh block and for general corporate purposes. The Underwriters are entitled to receive a cash commission equal to 6% of the gross proceeds raised from the Offering and will be issued compensation options that will entitle them to acquire that number of Vast common shares that is equal to 6% of the special warrants sold under the Offering for a period of 12 months from the closing date.
 


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