Toscana Energy Income Corporation Announces Closing of Asset Acquisitions

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

CALGARY, Nov. 28, 2012 /CNW/ - Toscana Energy Income Corporation ("Toscana Energy" or the "Company") (TSX Venture: TEI) is pleased to announce that it has closed its previously announced acquisitions of (i) assets having approximately 440 BOEs/day of long life liquids rich natural gas production and 20MMcf/day of gas processing and gathering facilities in west central Alberta for $10.5 million; and (ii) assets having approximately 750 BOEs/day of long life liquids rich natural gas production for $17.5 million.  These acquisitions were financed in part using the net proceeds from a private placement of 666,700 common share special warrants at a price of $15.00 per common share special warrant for gross proceeds of approximately $10.0 million and a private placement of 400,000 common shares at a price of $15.00 per common share for gross proceeds of $6.0 million.  The remaining balance of the aggregate acquisition cost was financed through the Company's credit facility. Completion of the acquisitions increase aggregate corporate production to over 2,400 BOEs/day.

About Toscana Energy Income Corporation

Toscana Energy Income Corporation is a conventional oil and gas producer with the mandate to acquire high quality, long life oil and gas assets including royalties, non-operated working interests and unitized production for yield and capital appreciation. Toscana Energy Income Corporation is managed by Sprott Toscana through Toscana Energy Corporation. Sprott Toscana is a member of the Sprott Group of Companies.

About Sprott Toscana

Sprott Toscana (formerly Toscana Merchant Group) is a team of Calgary-based energy specialists that manage three separate businesses: Toscana Energy Income Corporation (through Toscana Energy Corporation), Toscana Financial Income Trust and Maple Leaf Energy Income LPs. In July 2012, Toscana Merchant Group joined the Sprott Group of Companies when it was acquired by Sprott Inc. (TSX: SII), Canada's leading alternative asset manager and a global leader in resource investing.

Cautionary Statement

BOEs may be misleading, particularly if used in isolation.  A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities in the United States, nor shall there be any sale of securities mentioned in this press release in any state in the United States in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

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.

SOURCE: Toscana Energy Income Corporation

For further information:

For further information, please visit our website at www.sprott-toscana.com or contact:

Joseph S. Durante, Chief Executive Officer
Tel: (403) 410-6793
Fax: (403) 444-0090
E-Mail: jdurante@toscanacapital.com