Bolivar Energy Corp. Announces Closing of Previously Announced Private Placement Financing

CALGARY, Feb. 15 /CNW/ -- 
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
 DISSEMINATION IN THE UNITED STATES/


CALGARY, Feb. 15 /CNW/ - Bolivar Energy Corp. ("Bolivar" or the "Company")(TSXV: BVR) is pleased to announce that it has closed its previously
 announced bought deal private placement offering (the "Financing") of units ("Units") of the Company. Each Unit consists of one common share in the capital
 of the Company (the "Common Shares") and one-half of one Common Share purchase warrant of the Company
 (each whole warrant, a "Warrant"). Each Warrant is exercisable for one Common Share at a price of $0.25
 per share for a period of 24 months from the date hereof. The syndicate
 of underwriters was co-led by Raymond James Ltd. and Haywood Securities
 Inc. and included Paradigm Capital Inc. (collectively, the "Underwriters").


A total of 124,809,500 Units were issued at a price of $0.17 per Unit for aggregate gross
 proceeds to the Corporation of $21,217,615, which includes the exercise
 by the Underwriters of an over-allotment option to purchase an
 additional 16,279,000 Units.  Pursuant to the terms of an underwriting
 agreement dated effective January 24, 2011 between the Company and the
 Underwriters, the Underwriters received a cash commission equal to 6%
 of the gross proceeds raised pursuant to the Financing. The Common
 Shares and Warrants underlying the Units are subject to a statutory
 four month holding period which expires on June 16, 2011.


The net proceeds from the Offering will be used to fund the exploration
 and development of the Company's petroleum assets in Colombia and for
 general business development, acquisitions, and working capital
 purposes.


This news release does not constitute an offer to sell or a solicitation
 of an offer to buy any of the securities in the United States. The
 securities have not been and will not be registered under the United
 States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold within
 the United States or to, or for the account or benefit of U.S. persons
 (as defined in Regulation S under the 1933 Act) absent such
 registration or an applicable exemption from such registration
 requirements.


About Bolivar Energy Corp. 


Bolivar Energy Corp. is an early stage exploration company active in the Llanos Basin in Colombia, and trading on the TSX Venture Exchange
 under the symbol "BVR".


Forward-Looking Statement


This news release includes forward-looking statements. More
 particularly, this news release contains statements concerning the use
 of proceeds of the Financing. The forward-looking statements contained
 in this document, including assumptions, opinions and views of the
 Company or cited from third party sources are solely opinions and
 forecasts which are uncertain and subject to risks. A multitude of
 factors can cause actual events to differ significantly from any
 anticipated developments and although the Company believes that the
 expectations represented by such a forward-looking statements are
 reasonable, undue reliance should not be placed on the forward-looking
 statements because there can be no assurance that such expectations
 will be realized. Neither the Company nor any of its subsidiaries nor
 any of its officers or employees guarantees that the assumptions
 underlying such forward-looking statements are free from errors nor
 does any of the foregoing accept any responsibility for the future
 accuracy of the opinions expressed in this document or the actual
 occurrence of the forecasted developments.


The forward-looking statements contained in this document are made as of
 the date hereof and the Company undertakes no obligation to update
 publicly or revise any forward-looking statements or information,
 whether as a result of new information, future events or otherwise,
 unless so required by applicable securities laws.


Neither the 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.


To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/February2011/15/c2802.html



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