Mr. Steven Dean reports

OCEANIC ANNOUNCES LAUNCH OF NON-BROKERED CONVERTIBLE DEBENTURE FINANCING

Oceanic Iron Ore Corp. has arranged a non-brokered financing in an aggregate amount of up to $2,385,000.

The subscribers to the financing will be issued convertible debentures which will earn interest at a rate of 8.5 per cent per year over a 60-month term, payable quarterly in cash or common shares, at the election of the company, at the market price of the common shares at the time of settlement.

The principal amount of the debentures will be convertible to units during the term, at the election of the subscriber. The conversion price during the first year of the term is 7.5 cents per unit, increasing to 10 cents per unit for the remainder of the term. Each unit will consist of one common share of the company and one common share purchase warrant of the company, with each whole warrant entitling the holder to purchase one common share of the company at a price of 7.5 cents for a period of five years after closing of the financing.

The debentures will be secured with a first-ranking charge at any time against the assets of the company, ranking pari passu with the existing debentureholders (as defined herein).

The company intends to use the proceeds of the financing for continuing negotiations with potential strategic partners, general claims maintenance and working capital purposes.

In connection with the financing, the company also intends to make certain amendments to the company's previously issued Series A, B, C and D secured debentures to reference the issuance of the debentures. All other terms of the amended existing debentures, including the conversion price and the conversion period, will remain the same as the existing debentures.

The completion of the financing and the amendments will be subject to the approval of the TSX Venture Exchange.

We seek Safe Harbor.