Cancen Announces Final Closing of Brokered Financing of 10% Convertible Unsecured Subordinated Debentures

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S. 

Cancen Oil Canada Inc. ("Cancen" or the "Corporation") - (TSX VENTURE:COI) is
pleased to announce the final closing of the previously announced brokered
private placement (the "Private Placement") of 10% convertible unsecured
subordinated debentures (the "Debentures"). Pursuant to the Private Placement,
the Corporation issued 807 Debentures for gross proceeds of $807,000 through a
syndicate of agents led by Stonecap Securities Inc. and including Wolverton
Securities Ltd. and PI Financial Corp. (collectively, the "Agents"), with
Macquarie Private Wealth Inc. as a special selling group member.  


The net proceeds from the Private Placement will be used for working capital, to
fund the optimization and maximization of fluid handling capacity at each of the
Corporation's facilities, and for general corporate purposes. 


The Debentures have a face value of $1,000 per Debenture, a maturity date of
January 31, 2017 (the "Maturity Date"), and are convertible into common shares
("Common Shares") in the capital of the Corporation (the "Underlying Shares") at
the option of the holder at a conversion price, subject to certain adjustments,
of $0.70 per Common Share (the "Conversion Price"), being a conversion rate of
1,428.57 Common Shares for each $1,000 principal amount of Debentures. The
Debentures will accrue interest at a rate of 10% per annum payable semi-annually
in arrears on January 31, and July 31 of each year commencing July 31, 2013. The
July 31, 2013 interest payment will represent accrued interest for the period
from the date hereof. The Debentures will not be redeemable before January 31,
2016. On or after January 31, 2016 and prior to the Maturity Date, the
Corporation may, at its option, subject to providing not more than 60 and not
less than 30 days prior notice, redeem the Debentures, in whole or, from time to
time, in part, at par plus accrued and unpaid interest provided that the volume
weighted average trading price of the Common Shares on the TSX Venture Exchange
("TSX Venture") during the 20 consecutive trading days ending 5 trading days
preceding the date on which the notice of redemption is given is not less than
125% of the Conversion Price. The Debentures and the Underlying Shares are
subject to resale restrictions imposed by applicable securities laws and the
policies of the TSX Venture until June 29, 2013. 


The Debentures are direct, unsecured obligations of the Corporation,
subordinated to other indebtedness of the Corporation for borrowed money and
ranking equally with all other unsecured subordinated indebtedness. 


Subject to specified conditions, the Corporation has the right to repay the
outstanding principal amount of the Debentures, following the Maturity Date or
upon redemption, through the issuance of Common Shares. The Corporation also has
the option to satisfy its obligation to pay interest through the issuance and
sale of additional Common Shares. 


The Agents were paid a cash commission of $47,250 and were granted 49,500
compensation warrants (the "Compensation Warrants"), with each Compensation
Warrant entitling the holder to acquire one Common Share of the Corporation at a
price of $0.60 per Common Share until October 30, 2014.


About Cancen 

Cancen is an energy services company that focuses on providing specialized
services to upstream oil and natural gas companies operating in the Western
Canadian Sedimentary Basin. The services provided by Cancen assist these
companies with the treatment and sale of crude oil and the handling of
by-products associated with oil and natural gas development and production. The
services provided by Cancen include crude oil emulsion treatment, oilfield waste
processing, and disposal of produced and waste water. 


Reader Advisory 

This press release contains forward-looking statements and information that are
based on the beliefs of management and reflect the Corporation's current
expectations. When used in this press release, the words "estimate", "project",
"belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should"
and the negative of these words or such variations thereon or comparable
terminology are intended to identify forward-looking statements and information.
The forward-looking statements and information in this press release include
information relating to the securities issued pursuant to the Private Placement
and the use of proceeds from the Private Placement. Such statements and
information reflect the current view of the Corporation with respect to risks
and uncertainties that may cause actual results to differ materially from those
contemplated in those forward-looking statements and information. 


By their nature, forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause our actual results, performance
or achievements, or other future events, to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements. Forward-looking statements are made based on
management's beliefs, estimates and opinions on the date that statements are
made and the Corporation undertakes no obligation to update forward-looking
statements if these beliefs, estimates and opinions or other circumstances
should change. Investors are cautioned against attributing undue certainty to
forward-looking statements. 


The Corporation cautions that the foregoing list of material factors is not
exhaustive. When relying on Cancen's forward-looking statements and information
to make decisions, investors and others should carefully consider the foregoing
factors and other uncertainties and potential events. The Corporation has also
assumed that material factors will not cause any forward-looking statements and
information to differ materially from actual results or events. However, the
list of these factors is not exhaustive and is subject to change and there can
be no assurance that such assumptions will reflect the actual outcome of such
items or factors. 


Please visit Cancen's website at: www.cancenoilcanada.com

FOR FURTHER INFORMATION PLEASE CONTACT: 
Cancen Oil Canada Inc.
Brian Petersen
Chief Financial Officer and Director
[phone] Ext 105
[e-mail]


Cancen Oil Canada Inc.
Shankar Nandiwada
Chief Financial Officer and Corporate Secretary
[phone] Ext 109
[e-mail]
www.cancenoilcanada.com