Mr. Robert Zakresky reports

COELACANTH ENERGY ANNOUNCES PRIVATE PLACEMENT, GRANT OF STOCK OPTIONS AND GRANT OF RESTRICTED SHARE UNITS

In conjunction with the previously announced hiring of Jonathon Hanson as vice-president, engineering, Coelacanth Energy Inc. intends to complete a non-brokered private placement offering to Mr. Hanson of 325,715 units of the company, at a price of 70 cents per unit, for aggregate gross proceeds of $228,000.50. The company has also approved the granting of incentive stock options under its stock option plan to acquire up to an aggregate of 800,000 common shares and to the granting of restricted share units (RSUs) under its restricted share unit plan to obtain up to an aggregate of 525,000 common shares to Mr. Hanson.

Each unit in the offering consists of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at a price of 71 cents per share for a period of 60 months after closing of the offering.

The offering is considered a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The board of directors of the company has determined that the offering will be exempt from the requirement for a formal valuation under MI 61-101 pursuant to the exemptions in subsections 5.5(a) of MI 61-101 and that the offering will be exempt from the requirement for minority shareholder approval under MI 61-101 pursuant to the exemptions in subsections 5.7(1)(a) of MI 61-101. The offering has been unanimously approved by the members of the Board.

The company intends to use the proceeds from the offering for general corporate purposes.

The offering is subject to all necessary regulatory and stock exchange approvals, including but not limited to approval of the TSX-V. The securities issued pursuant to the offering will be offered and sold on a private placement basis pursuant to exemptions from the prospectus requirements under applicable Canadian securities legislation, including National Instrument 45-106 -- Prospectus Exemptions. The securities issued pursuant to the offering are subject to a four-month-and-one-day hold period from the date of the closing of the offering, in accordance with applicable Canadian securities laws.

The options are exercisable for a period of five years at an exercise price of 70 cents per common share, with 33.33 per cent of the options vesting on the first anniversary of the grant date and 33.33 per cent vesting on each of the second and third anniversaries thereafter. The RSUs vest over a three-year period at no additional cost, with 33.33 per cent of the RSUs vesting on each of the first, second and third anniversaries of the grant date, and will be settled in common shares upon vesting.

Following the grant of options and RSUs, Coelacanth has an aggregate of 23,772,331 options and 7,743,665 RSUs outstanding. Coelacanth's share-based incentive plans limit the total number of common shares underlying the aggregate outstanding options and RSUs to no more than 10 per cent of the issued and outstanding common shares of 633,920,913. As of the date of this press release, the total number of common shares underlying the outstanding options and RSUs on an aggregate basis is 31,515,996 or approximately 5.0 per cent of the issued and outstanding common shares.

We seek Safe Harbor.