Exxel Energy Corp. Announces US$9,000,000 Private Placement

VANCOUVER, Aug. 30 /CNW Telbec/ - Exxel Energy Corp. (TSX-V: EXX) (the
"Company") will conduct a non-brokered private placement of 1,800,000 units at
US$5.00 per unit for total proceeds of US$9,000,000. Each unit will be
comprised of one common share and one-half of one share purchase warrant. Each
whole warrant will entitle the holder to purchase one additional common share
of the Company at a price of US$7.50 per share. In the event that the common
shares of the Company close for 20 consecutive trading days at a price of
US$10.00 or higher on an aggregate volume of at least 100,000 shares, then the
warrants will expire 10 days after the twentieth such trading day. In any
other event, the warrants will expire two years from the date of issue. The
private placement will be conducted with a single international institutional
investor.
The proceeds from the private placement will be used for property
acquisition and general working capital.
The foregoing transaction is subject to the approval of the TSX Venture
Exchange.

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.