Closing of First Tranche of Private Placement and Amendment Agreement With Kreyenhagen JV Partner

Solimar Energy Limited ("Solimar" or the "Company") (ASX:SXS)(TSX VENTURE:SXS)
is pleased to announce that it has completed a first tranche of a non-brokered
private placement for aggregate gross proceeds of C$250,000 via the issuance of
Units at a price of C$0.065 per Unit. Each Unit is comprised of one common share
and one half of one right. Each right entitles the holder to acquire a warrant
upon shareholder approval of the conversion of the rights to warrants. Assuming
shareholder approval is obtained, each warrant will allow the holder to purchase
one common share of the Company at a price of C$0.065 for a 24 month period
following closing.


The securities issued pursuant to the private placement are subject to a four
month statutory resale restriction.


The Company intends to hold a shareholder meeting before the end of March 2014
in order for, among other things, shareholders to vote on, and if deemed
appropriate, to approve the conversion of the rights to warrants.


The Company intends to complete a further placement in the upcoming week for an
amount up to C$363,600 and the remainder of up to an aggregate of C$2,000,000
following shareholder approval of the remainder of the placement pursuant to ASX
rules.


The private placement is subject to final TSX Venture acceptance.

The Company also has entered into an amending agreement with its joint venture
partner ("JV Partner") in the Kreyenhagen Heavy Oil Project, in California.


Following the LOI announced on December 23, 2013, the amending agreement reduces
the JV Partner's Farm-in commitment to $1.8 million with a proportional
reduction in the earned Working Interest from 15% to 13.5 % and confirms that
the JV Partner will not participate in a second farm-in phase to earn additional
rights or working interest.


The JV Partner will participate in the ongoing testing and capital program
within the Heavy Oil Project at the Company's working interest of 13.5%. This
program includes testing planned for the 2-33 well drilled under the joint
venture and the drilling and coring of a vertical well, subject to a successful
completion of the proposed financing.


Solimar Energy Limited

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.


Reader Advisory: Forward-looking statements

This news release contains forward-looking information relating to the private
placement, planned development and exploration activities on the properties in
which the Company has interests, and other statements that are not historical
facts. Such forward-looking information is subject to important risks,
uncertainties and assumptions. The results or events predicated in this
forward-looking information may differ materially from actual results or events.
As a result, you are cautioned not to place undue reliance on this
forward-looking information. 


Forward-looking information is based on certain factors and assumptions. While
the Company considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect. 


Forward looking-information is subject to certain factors, including risks and
uncertainties that could cause actual results to differ materially from what is
currently expected. These factors include risks associated with the private
placement, risks associated with instability of the economic environments in
which the Company operates or owns interests, oil and gas exploration,
development, exploitation, production, marketing and transportation, loss of
markets, volatility of commodity prices, currency fluctuations, imprecision of
reserve estimates, environmental risks, competition from other producers,
inability to retain drilling rigs and other services, incorrect assessment of
the value of acquisitions, failure to realize the anticipated benefits of
acquisitions, delays resulting from or inability to obtain required regulatory
approvals and ability to access sufficient capital from internal and external
sources, reliance on key personnel, regulatory risks and delays, including risks
relating to the acquisition of necessary licenses and permits, environmental
risks and insurance risks.


You should not place undue importance on forward-looking information and should
not rely upon this information as of any other date. While the Company may elect
to, the Company is under no obligation and does not undertake to update this
information at any particular time, except as required by law. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Solimar Energy Limited
Jason Bednar
Director
[phone] or [phone]
www.solimarenergy.com.au