Dixie Energy Announces Closing of Brokered and Non-Brokered Private Placement

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN./

CALGARY, June 28, 2013 /CNW/ - Dixie Energy Trust ("Dixie" or the "Trust") is pleased to announce that it has closed its previously announced brokered private placement financing with Casimir Capital Ltd. as the sole agent on behalf of the Trust (the "Brokered Financing").  Pursuant to the Brokered Financing, the Trust issued an aggregate of 8,148,230 trust units ("Trust Units") at an issue price of $0.80 per Trust Unit for aggregate gross proceeds of $6,518,584.

Additionally, concurrent with closing of the Brokered Financing, the Trust closed a non-brokered private placement (the "Non-Brokered Financing" and together with the Brokered Financing, the "Financings") of Trust Units whereby the Trust issued an aggregate of 7,018,750 Trust Units at an issue price of $0.80 for aggregate gross proceeds of $5,615,000. When aggregated, the Trust issued a total of 15,166,980 Trust Units for aggregate gross proceeds of $12,133,584 pursuant to the Financings.

Dixie intends to use the net proceeds of the Financings to fund the purchase of additional working interests in certain oil and gas leases located in Mississippi and Alabama in which it currently holds an interest from Fletcher Exploration, LLC, the details of which were announced on May 30, 2013 and June 13, 2013.

The Trust currently intends to complete additional closings pursuant to each of the Brokered Financing and the Non-Brokered Financing.

About Dixie
Dixie is an energy trust created to provide investors with an oil and gas exploration focused investment. The strategy of Dixie is to acquire, exploit and develop, indirectly through its subsidiaries, long-life crude oil and gas prospects and reserves in the United States gulf coast states, primarily in Mississippi and Alabama.

Forward Looking Statement Disclaimer 
Certain statements included in this news release constitute forward looking statements or forward looking information under applicable securities legislation. Such forward looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward looking statements or information in this news release include, but are not limited to: the use of proceeds for the Financings and the potential to proceed with additional closings pursuant to each of the Brokered Financing and/or the Non-Brokered Financing.

Forward looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although Dixie believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because Dixie can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things the continued marketability of the Trust Units, Dixie's ability to close on the acquisitions and to consummate the transactions to which it intends to use the proceeds of the Financings and Dixie's discretion not to proceed with any additional or subsequent closings. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.

Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Dixie and described in the forward looking statements or information. These risks and uncertainties which may cause actual results to differ materially from the forward looking statements or information include, among other things: the ability of management to execute its business plan; the risk that Dixie may re-allocate the use of proceeds from the Financings; the risk that the acquisition transactions and other transactions described herein may be amended or terminated as a result of due diligence outcomes, or otherwise;  the risk that Dixie or other third parties may not be able to satisfy the conditions to close the transactions described herein; general economic and business conditions; the risk of instability affecting the jurisdictions in which Dixie operates; the risks of the oil and natural gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas and market demand; risks and uncertainties involving geology of oil and natural gas deposits; the ability of Dixie to add production and reserves through acquisition, development and exploration activities; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; fluctuations in oil and natural gas prices, foreign currency exchange rates and interest rates; risks inherent in Dixie's marketing operations, including credit risk; health, safety and environmental risks; risks associated with existing and potential future law suits and regulatory actions against Dixie; and uncertainties as to the availability and cost of financing. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.

The forward looking statements or information contained in this news release are made as of the date hereof and Dixie 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 required by applicable securities laws. The forward looking statements or information contained in this news release are expressly qualified by this cautionary statement.

SOURCE: Dixie Energy Trust

For further information:

David G. Anderson
T: 403 232 1010

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Dixie Energy Trust

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