Gallic Energy Ltd. announces closing of private placement

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

CALGARY, Jan. 28 /CNW/ - Gallic Energy Ltd. ("Gallic") (TSXV: GLC) is pleased to announce that, subject to the satisfaction of standard conditions including the receipt of all necessary regulatory and TSX Venture Exchange approvals, it has completed its previously announced non-brokered private placement of 18,750,000 units at a price of $0.08 per unit, for gross proceeds of Cdn $1.5 million. Each unit is to be comprised of one class A common share ("common share") and one warrant, with each warrant exercisable into one common share for a period of 18 months after closing at an exercise price of $0.12 per share.

The proceeds from the private placement will be used for general working capital requirements. The securities issued pursuant to this private placement will be subject to a four-month hold period. Gallic paid a finders' fee by way of the issuance of 473,000 common shares, 494,000 finders' warrants, and $24,380 cash for finders' commissions and expenses. Each finders' warrant is exercisable into one common share for a period of 18 months after closing at an exercise price of $0.10 per share.

The securities will not be registered with the U.S. Securities and Exchange Commission and may not be offered or sold within the United States without registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933 and any applicable state securities laws.

The class A common shares of Gallic Energy ltd. are traded on the TSX Venture Exchange under the symbol GLC.

Forward-looking Statements

This press release contains forward-looking statements. Any statements that are contained in this press release that are not statements of historical fact may be considered forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. Forward-looking statements in this press release include, but are not limited to statements concerning the anticipated private placement and the anticipated use of the net proceeds therefrom, and management's assessment of future plans and operations, expectations of future production, cash flow and earnings.

Although Gallic believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Gallic can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These forward-looking statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), acquisitions, commodity price and exchange rate fluctuation and uncertainties resulting from competition from other producers and ability to access sufficient capital from internal and external sources. There is also risk that the closing of the private placement could be delayed if Gallic is not able to obtain the necessary regulatory, stock exchange and any applicable shareholder approvals on the timelines it has planned. The private placement will not be completed at all if these approvals are not obtained or any other conditions to the closings are not satisfied. The intended use of the net proceeds of the offering by Gallic might change if the board of directors of Gallic, determines that it would be in the best interests of Gallic to deploy the proceeds for some other purpose. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Gallic's operations and/or financial results are included in Gallic's reports on file with Canadian securities regulatory authorities.

Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The forward-looking statements contained in this press release are made as of the date hereof and Gallic undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

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 Gallic Energy Ltd.

For further information: For further information: Mr. Mark Woods, President and Chief Operating Officer, Tel: (403) 263-1105, Fax: (403) 265-4514, markwoods@gallicenergy.com

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