Online Energy Inc. Announces Completion of Bought Deal Financing

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UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A
VIOLATION OF U.S. SECURITIES LAWS


Online Energy Inc. ("Online" or the "Company") (TSX VENTURE:ONL) is pleased to
announce that it has completed the previously announced bought deal equity
financing with a syndicate of underwriters led by Wellington West Capital
Markets Inc. (the "Underwriters") pursuant to which the Company issued an
aggregate of 4,490,000 common shares ("Common Shares") at a price of $0.50 per
Common Share and 3,510,000 Common Shares to be issued on a "flow-through" basis
("Flow-Through Shares") at a price of $0.57 per Flow-Through Share, for total
aggregate gross proceeds of $4,245,700 (the "Offering"), representing an
increase in the size of the Offering by 490,000 Common Shares from the initial
announcement on April 15, 2011.


The net proceeds from the Offering will be used to further fund exploration and
development activities on the Company's oil and liquids-rich natural gas
properties in the greater Paddle River area of west-central Alberta.


Online Energy Inc. is a domestic junior oil and gas exploration and production
company with assets in Alberta. Online trades on the TSX Venture Exchange under
the symbol ONL. Basic corporate information and periodically updated
presentations are available on the Company's website at www.onln.ca.


Cautionary Statements: 

This press release contains certain forward-looking statements (forecasts) under
applicable securities laws relating to future events or future performance.
Forward-looking statements are necessarily based upon assumptions and judgements
with respect to the future including, but not limited to, the outlook for
commodity markets and capital markets, the performance of producing wells and
reservoirs, well development and operating performance, general economic and
business conditions, weather, the regulatory and legal environment and other
risks associated with oil and gas operations. In some cases, forward-looking
statements can be identified by terminology such as "may", "will", "should",
"expect", "projects", "plans", "anticipates" and similar expressions. These
statements represent management's expectations or beliefs concerning, among
other things, future operating results and various components thereof affecting
the economic performance of Online. Undue reliance should not be placed on these
forward-looking statements which are based upon management's assumptions and are
subject to known and unknown risks and uncertainties, including the business
risks discussed above, which may cause actual performance and financial results
in future periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking statements.
Accordingly, readers are cautioned that events or circumstances could cause
results to differ materially from those predicted.


In the interest of providing Online shareholders and potential investors with
information regarding the Company, including management's assessment of Online's
future plans and operation, certain statements throughout this press release
constitute forward looking statements. All forward-looking statements are based
on the Company's beliefs and assumptions based on information available at the
time the assumption was made. The use of any of the words "anticipate",
"continue", "estimate", "expect", "may", "will", "project", "should", "believe"
and similar expressions are intended to identify forward looking statements. By
its nature, such forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause actual results or events to
differ materially from those anticipated in such forward looking statements.
Online believes the expectations reflected in those forward looking statements
are reasonable but no assurance can be given that these expectations will prove
to be correct and such forward looking statements contained throughout this
press release should not be unduly relied upon. These statements speak only as
of the date specified in the statements. Unless required by law, Online does not
undertake any obligation to publicly update or revise any forward looking
statements, whether as a result of new information, future events or otherwise. 


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy the securities in any jurisdiction. The Common Shares have not
and will not be registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws and many not be
offered or sold in the United States except in certain transactions exempt from
the registration requirements of the U.S. Securities Act and applicable states
securities laws.