Terra Energy Corp. completes C$2 million private placement

Date closed: 2/27/2014

Value: C$2 million

On February 27, 2014, Terra Energy Corp. (Terra or the Company) completed its non-brokered private placement offering (the Offering) pursuant to the issuance of: (i) 2,400,000 units of the Company (Units) at a price of $0.40 per Unit; and (ii) 2,600,000 common shares of the Company issued on a flow-through basis (Flow-Through Shares) at a price of $0.40 per Flow-Through Share. The aggregate gross proceeds pursuant to the Offering is C$2 million.

Each Unit consists of one common share of the Company (Common Share) and one Common Share purchase warrant of the Company (Warrant). Each Warrant is exercisable into one Common Share at a price of $0.50 per Common Share on or before June 30, 2015.

The gross proceeds of the Flow-Through Shares will be used by the Company to incur eligible Canadian development expenses (Qualifying Expenditures) prior to December 31, 2015 on Terra's properties.

Terra, headquartered in Calgary, Alberta, is a junior oil and gas company.

BLG represented Terra with a team led by Steven G. Pearson that included Melissa Smith and Jenna Kaye.