Azabache Announces Closing of Non-Brokered Offering and Convertible Loan

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES.



Azabache Energy Inc. ("Azabache" or the "Company") (TSX VENTURE:AZA) is pleased
to announce that it has closed its previously announced non-brokered financing
(the "Offering"). Pursuant to the Offering, Azabache sold an aggregate of
10,292,250 common shares in the capital of the Company (the "Common Shares") at
a price of $0.16 per Common Share for gross proceeds of $1,646,760. The Common
Shares issued pursuant to the Offering will be subject to a four month hold
period expiring on September 15, 2013.


In connection with the Offering, the Company paid eligible persons finder's fees
in the aggregate amount of $56,206.


The Company is also pleased to announce that it has entered into an agreement to
complete a non-brokered financing of a $350,000 convertible, unsecured,
interest-bearing loan (the "Debt Offering"). 


The Debt Offering will consist of convertible debentures in the aggregate amount
of $350,000. The interest rate will be 5% per annum, calculated and payable
together with the principal of the loan upon the maturity date. The term of the
loan shall be one (1) year, with the Company having a right to prepayment at any
time. Subject to certain conditions, the loan will be convertible into Common
Shares of the Company at a conversion price of $0.17 per share.


The Debt Offering is subject to certain conditions including, but not limited
to, the receipt of all necessary approvals including the approval of the TSX
Venture Exchange Inc.


The Company intends to use the proceeds from the Offering and the Debt Offering
to help fund the completion of fracture stimulation and work over of the
Company's COVx-2 well in the Vaca Muerta formation as well as for general
working capital and general corporate purposes. 


This press release contains forward-looking statements. More particularly, this
press release contains statements concerning the Debt Offering and the expected
use of proceeds of the Offering and the Debt Offering. The forward-looking
statements contained in this document are based on certain key expectations and
assumptions made by Azabache. Although Azabache believes that the expectations
and assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the forward-looking
statements because Azabache can give no assurance that they will prove to be
correct. Since forward-looking statements address future events and conditions,
by their very nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated due to a number
of factors and risks. 


These include, but are not limited to, the failure to obtain necessary
regulatory approvals, risks associated with the oil and gas industry in general
(e.g., operational risks in development, exploration and production; delays or
changes in plans with respect to exploration or development projects or capital
expenditures; the uncertainty of reserve estimates; the uncertainty of estimates
and projections relating to production, costs and expenses, and health, safety
and environmental risks), commodity price and exchange rate fluctuations. The
forward-looking statements contained in this document are made as of the date
hereof and Azabache undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws. 


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of the securities in any state in
which such offer, solicitation or sale would be unlawful. The securities have
not been registered under the United States Securities Act of 1933, as amended,
and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Azabache Energy Inc.
Claudio Larotonda
President & CEO
+54.11.4893.4004
[e-mail]


Azabache Energy Inc.
Glenn Van Doorne
Chairman
+403.966.8739
[e-mail]
www.azaenergy.com