Online Energy Inc. Closes Additional Tranche of Financing

NOT FOR DISSEMINATION IN THE 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 closed an additional tranche of its previously announced
public offering by issuing 200,000 common shares of the Company ("Common
Shares"), at a price of $0.26 per Common Share, for aggregate gross proceeds of
$52,000 (the "Additional Closing"). 


On April 25, 2012, the Company raised approximately $1.2 million, in two
separate closings, pursuant to which the Company issued 2,716,700 Common Shares
at a price of $0.26 per share and 1,541,500 Common Shares issued on a
"flow-through" basis at a price of $0.30 per share (together with the Additional
Closing, the "Offering"). 


The Offering was conducted through a syndicate of agents led by Casimir Capital
Ltd. and including Acumen Capital Finance Partners Limited. 


The Company intends to use the net proceeds of the Offering, together with
existing working capital, cash flow from operations and its recently established
credit facility, to fund its 2012 capital budget in the Greater Paddle River
area in west-central Alberta, where the Company has successfully assembled an
extensive land position of 135 net sections. This concentrated acreage position
supports a large inventory of horizontal multi-frac well locations on a variety
of resource plays including the Notikewin, Wilrich, Ostracod, Rock Creek,
Nordegg and Duvernay formations. Online also maintains a growing inventory of
low-risk vertical oil locations targeting the Viking and Ellerslie formations as
well as a number of low-cost re-entry opportunities. 


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.


This news release does not constitute an offer to sell or the solicitation of an
offer to buy any securities of Online in the United States. The Offered Common
Shares and the Flow-Through Shares described in this news release have not been
and will not be registered under the United States Securities Act of 1933, as
amended, or the securities laws of any state and may not be offered, sold or
delivered in the United States absent an exemption from registration.