Cancen Announces Proposed Closing of Final Tranche of Its Private Placement

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 that, further to its press release issued on August 30,
2012, it intends to proceed with closing on October 30, 2012 of a final tranche
of its previously announced private placement financing (the "Private
Placement") consisting of 12% secured subordinated convertible debentures
("Secured Subordinated Debentures") and units of the Corporation ("Units").


The gross proceeds from the final closing of the Private Placement will be in
addition to the previous closings of the Private Placement. To date, pursuant to
the Private Placement, Cancen has raised aggregate gross proceeds of $7,183,800
by the issuance of 6,648 Secured Subordinated Debentures and 893,000 Units,
through a syndicate of agents led by Stonecap Securities Inc. and including
Wolverton Securities Ltd. (the "Agents") together with Macquarie Private Wealth
Inc. as a special selling group member.  


The net proceeds from the Private Placement will be used to fund the
Corporation's 2012 capital expenditure program and for general working capital
purposes. 


The Secured Subordinated Debentures have a face value of $1,000 per Secured
Subordinated Debenture, a maturity date of July 31, 2016, and are convertible
into common shares of the Corporation at the option of the holder at a
conversion price, subject to certain adjustments, of $1.00 per Common Share (the
"Conversion Price") being a conversion rate of 1,000 Cancen Common Shares for
each $1,000 principal amount of Secured Subordinated Debentures. The Secured
Subordinated Debentures accrue interest at a rate of 12.0% per annum payable
semi-annually in arrears on January 31 and July 31 in each year commencing
January 31, 2013. The January 31, 2013 interest payment will represent accrued
interest for the period from the closing date. After July 31, 2015 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 Secured
Subordinated Debentures, in whole or in part, at par plus accrued and unpaid
interest provided that the volume weighted average trading price of the Common
Shares of the Corporation on the TSX Venture Exchange 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. 


Subject to specified conditions, the holders of the Secured Subordinated
Debentures may elect, subject to regulatory approval, to have the Corporation
repay the outstanding principal amount of the Secured Subordinated Debentures,
on maturity or redemption, through the issuance of common shares of the
Corporation.  


The Units have an issue price of $0.60 per Unit and are comprised of one (1)
common share and one (1) common share purchase warrant of the Corporation. Each
warrant entitles the holder thereof to acquire one additional common share of
the Corporation at a price of $0.85 for a period of 24 months following closing
of the Private Placement. 


The Secured Subordinated Debentures and the Units issued as part of the final
closing will be subject to a four month hold period. Closing of the final
tranche of the Private Placement is subject to receipt of all necessary
regulatory approval, including the approval of the TSX Venture Exchange.


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 completion of the Private Placement and the
Mezzanine Financing. 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.
Frederick LaHaie
President & CEO
[phone]
[e-mail]
www.cancenoilcanada.com


Buchalter Consulting
Stan Buchalter
Investor Relations
[phone]