Foraco closes initial public offering and secondary offering of approximately $34 million


    TORONTO, Aug. 2 /CNW/ - Foraco International SA (the "Company" or
"Foraco") is pleased to announce that it has successfully completed its
initial public offering (the "IPO") of 14,040,870 common shares at a price of
$2.40 per share for gross proceeds to the Company of $33,698,088. In
conjunction with the completion of the IPO, certain selling shareholders of
the Company have sold, pursuant to a secondary offering (the "Secondary
Offering"), an aggregate of 520,000 common shares of the Company at a price of
$2.40 per share for gross proceeds to the selling shareholders of $1,248,000.
The IPO and the Secondary Offering were led by Research Capital Corporation,
and included CIBC World Markets Inc. and Canaccord Capital Corporation
(collectively, the "Agents").
    The Company has granted the Agents an over-allotment option exercisable
within 60 days following closing of the IPO to purchase up to an additional
15% of the number of common shares sold under the IPO (up to 2,106,130 common
shares) at a price of $2.40 per common share. If the over-allotment option is
exercised in full, the gross proceeds to the Company from the IPO will be
approximately $38,752,800.
    The proceeds arising from the IPO will be used by the Company to retire
existing indebtedness of the Company, to expand the business of the Company by
way of strategic acquisitions or through organic growth and for general
corporate purposes.
    Foraco's common shares have been trading on an if as and when issued
basis under the symbol "FAR" since July 24, 2007. Trading on an if as and when
issued basis has now ceased and Foraco's common shares will commence trading
on the Toronto Stock Exchange under the symbol "FAR" effective at the opening
of trading today.
    This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.

    About Foraco

    Foraco is a worldwide drilling service provider headquartered in
Marseille, France. The Company provides a diverse range of drilling services
to the minerals, energy, water, environmental and infrastructure sectors. The
Company currently operates 100 drilling rigs, with a presence in 16 countries
across five continents. For more information about Foraco, visit

    Caution concerning forward-looking statements

    This press release may contain "forward-looking statements" and
"forward-looking information" within the meaning of applicable securities
laws. These statements and information include estimates, forecasts,
information and statements as to management's expectations with respect to,
among other things the future financial or operating performance of the
Company and capital and operating expenditures. Often, but not always,
forward-looking statements and information can be identified by the use of
words such as "may", "will", "should", "plans", "expects", "intends",
"anticipates", "believes", "budget", and "scheduled" or the negative thereof
or variations thereon or similar terminology. Forward-looking statements and
information are necessarily based upon a number of estimates and assumptions
that, while considered reasonable by management, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Readers are cautioned that any such forward-looking statements
and information are not guarantees and there can be no assurance that such
statements and information will prove to be accurate and actual results and
future events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed under the heading
"Risk Factors" in the Company's final prospectus dated July 23, 2007, which is
filed with Canadian regulators on SEDAR ( The Company expressly
disclaims any intention or obligation to update or revise any forward-looking
statements and information whether as a result of new information, future
events or otherwise. All written and oral forward-looking statements and
information attributable to us or persons acting on our behalf are expressly
qualified in their entirety by the foregoing cautionary statements.

    %SEDAR: 00025480E

For further information:

For further information: Bruce Wigle, Vice-President, Equicom, T: (416)
815-0700 X 228, F: (416) 815-0080, E:

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