Wednesday, 14 November 2012

Petromin Resources Ltd. (“Petromin”, or the “Company”) is pleased to announce a non-brokered private placement (the “Offering”) of up to 5,000,000 non-flow-through units (“NFTUnits”) at a price of $0.10 per NFT Unit and up to 4,000,000 flow-through units (the “FT Units”) at a price of $0.25 per FT Unit.

Each NFT Unit will be comprised of one common share (a “NFTShare”) of the Company  and one-half of one common share purchase warrant (each being a “Warrant”).  Each FT Unit will be comprised of one NFT Share, one flow-through common share (a “FTShare”) of the Company and twoWarrants.  Every whole Warrant will be exercisable into a non-flow-through common share (a “Warrant Share”) in the capital of the Company at a price of $0.15 per Warrant Share until the close of business on that day that is one year after the date (the “Closing Date”) of the Offering.

Subject to the approval of the TSX-Venture Exchange (the “TSX-V”), a finder’s fee will be paid by the Company to certain finders, who are arm’s length parties, for services rendered in introducing certain investors to the Offering.  The finder’s fee will consist of a cash payment of 10% of the proceeds derived from the NFT Units and FT Units sold to purchasers introduced to the Company by the finders.

The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities. All securities issued pursuant to the private placements will be subject to a four month hold period.

The proceeds from the Offering will be used to fund the acquisition of additional oil and gas lands, the workover and recompletion of some existing wells and for general working capital.