Emerald Bay Announces Closing of Private Placement

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

CALGARY, Feb. 17, 2012 /CNW/ - Emerald Bay Energy Inc.  (TSX Venture: EBY) (the "Corporation" or "Emerald Bay") today reported that the Corporation has closed its previously announced private placement. Pursuant to the private placement, 14,240,000 units ("Units") were issued at a price of $0.05 per Unit, for aggregate consideration of $712,000 (1,740,000 Units were purchased for $87,000 by a current shareholder of the Corporation that controls (after this issuance), directly or indirectly, just over 11% of the common shares of the Corporation). Each Unit consisted 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 proceeds will be used for drilling wells, contributing to the Corporation debt facilities and increasing working capital. A finder's fee of $32,500 was paid to Trimor Capital Corporation in connection with the private placement. Trimor Capital Corporation was also issued 650,000 finder's options as further compensation (each finder's option exercisable into one Unit of the Corporation (on the same terms and conditions as those received by the subscribers under this Offering) for a period of 12 months from the issuance at a price of $0.05).

All of the Common Shares, Warrants, and finder's options issued pursuant to the private placement are subject to a 4-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 lauren@chfir.com. 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.

SOURCE Emerald Bay Energy Inc.

For further information:

Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000 or by email at info@ebyinc.com,

or

CHF Investor Relations:

Robin Cook, Senior Account Manager, (416) 868-1079 x228, robin@chfir.com.

Profil de l'entreprise

Emerald Bay Energy Inc.

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