Cancen Announces Planned Closing of Second Tranche of Private Placement Offering of 10% Convertible Debentures

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

Cancen Oil Canada Inc. (the "Corporation") (TSX VENTURE:COI) is pleased to
announce that further to its press release on December 28, 2012, the Corporation
intends to close a second tranche of its brokered private placement offering for
up to $5.0 million of 10% convertible unsecured, subordinated, debentures
("Debentures") of the Corporation (the "Private Placement") on January 31, 2013.
Additionally, PI Financial Corp. has been added as a co-agent of the financing.
The Corporation issued $0.7 million of Debentures on the first closing on
December 28, 2012.


The Debentures will have a face value of $1,000 per Debenture, a maturity date
of January 31, 2017 (the "Maturity Date"), and will be convertible into Common
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 principle 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 closing date. The Debentures will not
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 five trading days preceding the date on which the notice of redemption is
given is not less than 125% of the Conversion Price. 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, on
maturity or 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 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.


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 anticipated closing of the second tranche of the
Private Placement and the securities issued pursuant to 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Cancen Oil Canada Inc.
Brian Petersen
Chief Executive Officer
[phone] ext 105
[e-mail]
www.cancenoilcanada.com


Buchalter Consulting
Stan Buchalter
Investor Relations
[phone]
[e-mail]