Azabache Announces Non-Brokered Private Placement and Appointment of New Director

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) announces
that it intends to proceed with a non-brokered private placement (the "Private
Placement") of a minimum of 31,250,000 common shares in the capital of the
Company (the "Common Shares") at a price of $0.16 per Common Share for minimum
gross proceeds of $5,000,000 and a maximum of 62,500,000 Common Shares for
maximum gross proceeds of up to $10,000,000. 


Closing of the Private Placement is expected to occur on or about March 21, 2013
or such other date as the Company may determine, and is subject to certain
conditions including, but not limited to, the receipt of all necessary approvals
including the approval of the TSX Venture Exchange (the "Exchange"). The Common
Shares issued pursuant to the Private Placement will be subject to resale
restrictions imposed by applicable securities laws and the policies of the
Exchange.


The Company intends to use the proceeds from the Private Placement to complete
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. 


In connection with the Private Placement, the Company may pay eligible persons a
finder's fee of up to 6% of that portion of the proceeds of the Private
Placement that result from such parties efforts, subject to compliance with
applicable securities laws.


The Company is also pleased to announce the appointment of Mr. Marcelo
Etchebarne as director of the Company. Mr. Etchebarne is a senior partner in the
Corporate Finance Group at Cabanellas Etchebarne Kelly, a law firm based in
Buenos Aires. In 2003 he was ranked as one of the top 40 lawyers under 40 in
Argentina by the Latin Lawyer Survey. Mr. Etchebarne is counsel to large local
and international companies doing business in the energy sector in Argentina. He
also brings significant experience in international debt and equity securities
offerings to the board. Mr. Etchebarne graduated as a lawyer from Argentine
Catholic University Law School, obtained an LL.M. from Harvard Law School, and
was admitted to the Argentine bar in 1994 and the New York State bar in 1997. 


The Company also announces the resignation of Mr. Vincent Chahley as a director
of the Company effective March 11, 2013. The Company would like to thank Mr.
Chahley for his contribution to Azabache and wishes him success in his future
endeavors. 


This press release contains forward-looking statements. More particularly, this
press release contains statements concerning the anticipated timing for the
closing of the Private Placement and the expected use of proceeds of the Private
Placement. The forward-looking statements contained in this document are based
on certain key expectations and assumptions made by Azabache, including with
respect to the anticipated timing for closing the Private Placement and the
expected use of proceeds of the Private Placement. 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