EMERALD BAY ANNOUNCES PRIVATE PLACEMENT

 In News, Press Releases

Emerald Bay Energy Inc. (TSX Venture: EBY) (the “Corporation”, the “Company” or “Emerald Bay”) today reported that the Corporation is proposing a private placement offering of up to $500,000 (up to maximum of 25,000,000 common shares (“Common Shares”) of the Corporation). The Common Shares are to be issued under a unit offering whereby up to a maximum of 25,000,000 units (“Units”) at a subscription price of $0.02 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 $0.05) (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 $0.10 for 30 consecutive trading days (with the 30th 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 on the Corporation’s assets in Texas. The Corporation will use the funds from this offering as follows:

(i) land and lease renewals at Wooden Horse, Texas and Gonzales County, Texas at an approximate cost of $65,000;
(ii) electrical upgradesto the Kuhn 3, Kuhn 4 and Kuhn A5 wells (Wooden Horse) at an approximate cost of $68,000;
(iii) progressive cavity pumping equipment installations at Kuhn 3 and Kuhn A5 (Wooden Horse) at an approximate cost of $70,000;
(iv) Kuhn A5 (Wooden Horse) hydraulic fracture stimulation at an approximate cost of $43,000;
(v) drill and test new Kuhn A6 (Wooden Horse) well at an approximate cost of $135,000; and
(vi) re-enter and test the upper Edwards formation in the Kuhn 1H (Wooden Horse) horizontal well
at an approximate cost of $110,000.

All of the Common Shares and Warrants issued pursuant to the private placement are subject to a 4-month hold period. The terms of the private placement are according to the TSX Venture Exchange Discretionary Waivers of $0.05 Minimum Pricing Requirement Bulletin dated April 7, 2014 and are subject to the approval of the TSX Venture Exchange.

ABOUT EMERALD BAY

Emerald Bay Energy Inc. (EBY) is an energy company with oil producing properties in southwest Texas as well as non operated oil and natural gas interests in Central Alberta, Canada. EBY is the operating partner of the Wooden Horse, Nash Creek, and Cottonwood Creek Projects in Guadelupe County, Texas, where the Company currently now owns a 50.00% working interest in those projects. Additionally, the Company owns various working interests in the MarPat and HugoCellR partnerships. The Company also owns 75% of Production Resources Inc., a South Texas oil company.

To stay informed on Emerald Bay Energy, please join our Investor Group at https://www.8020connect.com/groups/emerald-bay-energy-inc for all upcoming news releases, articles, comments and questions.

For further information, please contact: Emerald Bay President, Shelby D. Beattie, (403) 262-6000, info@ebyinc.com, www.ebyinc.com

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.

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