Cancen Oil Canada Inc. Reports Record First Quarter 2013 Results with Significant Increase in Revenues, $5.35 Million of Secu...

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Cancen Oil Canada Inc. ("Cancen" or the "Company") (TSX VENTURE:COI) a provider
of specialized services to the energy sector, is pleased to announce that it has
filed its Financial Statements and related Management's Discussion and Analysis
for the quarter ended March 31, 2013 which are available on the Company's
profile at www.sedar.com.


The Company also announces it has entered into term sheets for a total of $5.35
million of secured debt financing with a Canadian based mezzanine lender as well
as individual investors expected to close on or before June 7, 2013, subject to
regulatory approval and the completion of formal documentation. The net proceeds
of this debt financing will be used for the estimated capital expenditure and
working capital requirements of the Company for the balance of 2013. The
proposed capital expenditures are primarily focused on bringing the Chamberlain
facility operational by the end of the fourth quarter which will move the
Company towards becoming self-sustaining. 


Company Highlights 

2013 First Quarter Highlights



--  The Company enhanced operations at its Silver Valley Custom Treating
    Facility to increase capacity for receipts of produced water and
    emulsion volumes, resulting in a quarter over quarter increase in
    revenues. 
--  The Company, through its relationship with Astra Midstream, transacted a
    record quarter of crude oil volumes into the market, further
    contributing to profitability of Silver Valley. 
--  490% increase in revenues in the first quarter of 2013 over the first
    quarter of 2012. The improved volumes in the first quarter resulted in a
    142% increase in revenues in the first quarter of 2013 over the fourth
    quarter of 2012. 
--  The Company completed its plan for bringing the disposal well at its
    Chamberlain site on line and is prepared to proceed with site
    development in the second half of the year. 



Future Plans and Outlook 

The Company's near term capital expenditure program consists of a disposal well
workover and site construction and initiating operations at the Chamberlain
Facility, improvements to enhance the operational efficiencies and expand
services at the Silver Valley Facility and to develop the Athabasca facility as
a waste water disposal facility (collectively the "Facilities"). The Company
will continue to evaluate its opportunities to expand the Company through
additional and complementary service lines, organic growth and strategic
acquisitions. 


Secured Debt Financings 

The Company has entered into term sheets for a total of $5.35 million of secured
debt financing, subject to regulatory approval. 


The Company has entered into a term sheet for a secured debt facility of $4.25
million with a Canadian based mezzanine lender (the "Lender") with a term to
June 30, 2014. The facility provides for initial funding of $1.5 million at
closing, with the remaining $2.75 million to be available upon completion of the
workover of the Company's disposal well at Chamberlain. The facility bears
interest at a rate of 12% per annum and the Company has agreed to issue the
Lender 1,333,333 common shares in the capital of the Company ("Common Shares")
at closing, subject to a four month hold period of which 666,666 Common Shares
will be held in escrow and released pro-rata with further facility advances. 


The Company has also entered into term sheets for a secured debt facility for
gross proceeds of $1.1 million with a group of investors ("Investor Lenders"),
which includes an affiliate of an officer and director, with a term to June 30,
2014. The facility also bears interest at a rate of 12% per annum and requires a
deferred payment on repayment of the loan of $66,000 or 165,000 Common Shares,
at the option of the Investor Lenders. 


Collectively, these debt financings (the "Debt Financings") provide the capital
to fund the estimated capital expenditures and working capital requirements of
the Company for the balance of 2013.


Management Role Change 

Effective June 1, 2013 Brian Petersen will transition from CEO to Managing
Director, Capital Markets, a role closely aligned with his skill set and
experience in the capital markets. 


"We all thank Brian for his significant contribution to our success to date, and
welcome his continued commitment of support," said Keith Talbot, founder and
Director, "Our leadership team is well equipped to execute the Company's
operational and growth plans."


The CEO responsibilities will be assumed by other members of the existing
management team.


About Cancen 

Cancen provides specialized services to the energy sector, specifically to
companies involved in the exploration, extraction and production of oil and
natural gas in Western Canada. Cancen develops and constructs facilities in
proximity to its customers to provide treatment of crude oil emulsion,
terminalling, storage and marketing of oil and disposal of production water.


Reader Advisory 

This press release contains forward-looking statements and information that are
based on the beliefs of management and reflect the Company'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 Debt Financings. Such
statements and information reflect the current view of the Company 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 Company 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 Company 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 Company 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.
Ian Simister
President
[phone] ext 108
[e-mail]


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