Emerald Bay Announces Private Placement

    




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

 CALGARY, June 20, 2012 /CNW/ - Emerald Bay Energy Inc.   (the "Corporation" or "Emerald Bay") today reported that the Corporation is proposing a private placement  offering of up to $1,000,000 (up to a maximum of 14,285,715 common  shares ("Common Shares") of the Corporation).  The Common Shares are to be issued under a unit  offering whereby up to a maximum of 14,285,715 units ("Units") at a subscription price of $0.07 per Unit are to be offered.  Each  Unit shall consist of one (1) Common Share of the Corporation and one  (1) share purchase warrant (the "Warrant") (each full Warrant shall entitle the holder thereof to purchase one (1)  additional Common Share of the Corporation for a period of 12 months  from the issuance of the Units at a price of $0.10) (the "Offering"). 

 The Warrants are subject to an acceleration clause whereby if after four  months and one day following the date the Warrants are issued, the  closing price of the Common Shares of the Corporation on the principal  market on which such shares trade is equal to or exceeds $0.15 for 30  consecutive trading days (with the 30(th) such trading date hereafter referred to as the "Eligible Acceleration Date"), the Warrant expiry date shall accelerate to the date which is 30  calendar days following the date a press release is issued by the  Corporation announcing the reduced warrant term, provided no more than  five business days following the Eligible Acceleration Date: (i) the  press release is issued; and (ii) notices are sent to all warrant  holders. 

 The net proceeds will be used for exploration and expansion of the  Corporation's South Texas property and general working capital needs. 

 All of the Common Shares and Warrants issued pursuant to the private  placement are subject to a four-month hold period. Completion of the  private placement is subject to the final approval 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. 

Emerald Bay Energy Inc.


CONTACT:  Emerald Bay President, Shelby D. Beattie, by telephone at [phone] or by email at [e-mail],orCHF Investor Relations, Robin Cook, Senior Account Manager, [phone] x228, [e-mail]. 


    

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