Azabache Announces Convertible Loan Financing

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 entered into an agreement with an insider of the
Corporation to complete a non-brokered financing (the "Debt Offering") of a
$1,000,000 convertible, unsecured interest-bearing loan (the "Convertible
Loan"). 


The Convertible Loan will bear interest at a rate of 8% per annum, calculated
and payable together with the principal of the Convertible Loan upon the
maturity date. The term of the Convertible Loan shall be one (1) year, with the
Company having a right to prepayment at any time. At maturity, the Convertible
Loan may be convertible into Common Shares of the Company at a conversion price
of $0.16 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 Debt Offering for general
working capital and general corporate purposes.


Neither the TSXV nor its regulation services provider (as that term is defined
in the policies of the TSXV) accepts responsibility for the adequacy or accuracy
of this release. 


This press release contains forward-looking statements. More particularly, this
press release contains statements concerning the Debt Offering, the expected use
of proceeds of the Debt Offering and the expected regulatory approval. 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.
Marc Bouchard
CFO
+647.409.4088
[e-mail]
www.azaenergy.com