Emerald Bay Announces Loan Extension

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Emerald Bay Energy Inc. (TSX VENTURE:EBY) (the "Corporation" or "Emerald Bay")
reports that it has entered into a loan agreement (the "Loan") with an arm's
length lender (the "Lender") in the principal amount of $1,200,000 (the "Loan").
The Loan has been entered into on the same terms as the previous loan agreement,
which expired on August 15, 2013. The Loan will bear interest at a rate of 10%
per annum, compounded monthly, with a term ending August 15, 2014, subject to
standard prepayment and conversion clauses. 


In addition to industry standard security, the Loan is secured by a promissory
note and security over the oil and gas assets of the Corporation.


In consideration of the Loan, the Corporation has agreed to re-issue the
5,000,000 common share purchase warrants ("Warrants") which were previously
issued to the Lender under the previous loan agreement (and expired at the end
of the previous loan agreement. Each Warrant shall be exercisable into one
common share in the capital of the Corporation ("Common Share") at a price of
$0.05 per Common Share on or before August 15, 2014. 


The Common Shares issuable upon exercise of the Warrants or conversion of the
Loan will be subject to a 4-month hold period. The Loan and extension of the
expiry date of the Warrants are subject to the acceptance of the TSX Venture
Exchange.


About Emerald Bay

Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas producer with
production properties in Western Canada and South Texas. The common shares of
Emerald Bay trade on the TSX Venture Exchange under the symbol "EBY". Please
visit our website at www.emeraldbayenergy.com. 


If you would like to receive press releases via email please contact
[e-mail]. Please specify "Emerald Bay press releases" in the subject
line.


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.


NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


FOR FURTHER INFORMATION PLEASE CONTACT: 
Emerald Bay Energy Inc.
Shelby D. Beattie, President
[phone]
[e-mail]
www.emeraldbayenergy.com


CHF Investor Relations
Robin Cook, Senior Account Manager
[phone] x228
[e-mail]