Greentree Gas & Oil Ltd. private placement



    LONDON, ON, June 5 /CNW/ - Greentree Gas & Oil Ltd. (TSXV-GGO)
("Greentree" or the "Company") is pleased to announce, subject to regulatory
approval, a proposed non-brokered private placement of convertible debentures.
The Company proposes to issue up to $2,000,000 of convertible unsecured
debentures bearing interest at 12% per annum, payable quarterly and maturing
on July 1, 2012. The debentures will be convertible at the option of the
holder into common shares of Greentree at $0.24 per share during the first two
years, $0.27 per share during the third year, $0.30 per share during the
fourth year and $0.33 per share in the last year before maturity. The Company
may redeem the debentures on thirty (30) days' notice provided that its common
shares have traded at prices not less than $0.50 per share in the 30 days
immediately preceding the date of such notice if notice is given in before
July 1, 2009, at $0.55 per share if notice is given in the third year, $0.60
per share if notice is given in the fourth year, and $0.65 per share if notice
is given in the last year before maturity. The Company intends to use the
proceeds to complete its Tilbury West oil well, pay accounts payable, reduce
bank debt and for general working capital. All purchasers must qualify as
"accredited investors" under applicable securities legislation and all
securities issued will be subject to a 4 month hold period.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.





For further information:

For further information: contact Duncan Hamilton, M.Sc., P. Geol.,
President, or Patrick Uzan, B.A., C.A., Chief Financial Officer, Greentree Gas
& Oil Ltd., 207-209 Consortium Court, London, Ontario, N6E 2S8, Telephone:
(519) 681-9355, Facsimile: (519) 681-3887, email:
Greentree.gas@greentreegas.on.ca

Organization Profile

GREENTREE GAS & OIL LTD.

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