Emerald Bay Signs Loan Agreement

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

CALGARY, June 19, 2012 /CNW/ - Emerald Bay Energy Inc.  (TSX Venture: EBY) (the "Corporation" or "Emerald Bay") reports that it has entered into a loan agreement (the "Loan Agreement") with an arm's length lender (the "Lender") in the principal amount of $1,500,000 (the "Loan"). The Loan will bear interest at a rate of 10% per annum, compounded monthly, with a term ending August 15, 2013.

The proceeds of the Loan will be used primarily to fully repay its current lending arrangement with remaining funds being used for general working capital. In addition to industry standard security, the Loan Agreement is also secured by a promissory note and security over the oil and gas assets of the Corporation.

In consideration of the Loan, the Corporation has agreed to issue to the Lender 5,000,000 common share purchase warrants ("Warrants"). Each Warrant shall be exercisable into one common share in the capital of the Corporation ("Common Share") at a price of $0.10 per Common Share on or before August 15, 2013.

The Common Shares issuable upon exercise of the Warrants will be subject to a four month hold period. The Loan Agreement and issuance of the Warrants are subject to the acceptance 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 aman@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 Energy Inc.
Shelby D. Beattie, President
(403) 262-6000
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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