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Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSXV: PEH) today announced that Primeline has signed an amended and restated agreement with Victor Yiou-Hwa Hwang, its President, Chairman and largest shareholder amending the terms of an existing working capital facility. Previously Mr. Hwang granted Primeline a loan facility for working capital purposes of up to US$4,000,000 (the “Loan”) The amount drawndown to date under the facility is US$3,205,128 so that US$794,872.00 remains available. The terms of the loan have now been amended such that the period during which the Loan Facility is available to be drawn against is extended to 30th November 2012 and that the Loan is repayable on written demand at any time after 30th April 2013. Primeline is exploring options for generating funds to repay the Loan and expects to make an announcement about repayment in due course.
In addition, Primeline has entered into an agreement with D&D Securities Inc. (“D&D”) whereby D&D will act as a consultant to provide advice in relation to investor relations. D&D will assist the Company with respect to matters such as “road shows”, research coverage and review of press releases. The arrangement has no fixed duration but is terminable by either party on 90 days written notice. D&D is a full service Canadian investment banking firm with its head office in Toronto. D&D has no interest, directly or indirectly, in Primeline or its securities or any right or intent to acquire such an interest and employees of D&D own less than 1% of the issued and outstanding shares of Primeline. As compensation, under an option agreement dated July 9th 2012, D&D will be issued options to purchase a total of 500,000 common shares at $0.50 per share exercisable until June 25th, 2017 under its “rolling 10%” option plan. There were presently 6,479,125 shares reserved for issuance under the plan and 5,979,125 now remain following the grant of the option. The granting of the stock option is subject to acceptance for filing by the TSX Venture Exchange.
About Primeline Energy Holdings Inc.
Primeline is an exploration and development company focusing exclusively on China resources to become a major supplier of gas and oil to the East China market. Primeline has a 75% Contractor’s interest in and is the operator of the petroleum contract with CNOOC for Block 33/07 in the East China Sea and a 36.75% interest in the LS36-1 gas field in Block 25/34 which is being developed by CNOOC Limited (acting as Operator for the development) together with Primeline and Primeline Petroleum Corp. (“PPC”). Shares of the Company are listed for trading on the TSX Venture Exchange under the symbol PEH.
ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.
Ming Wang
Chief Executive Officer
CONTACT:
PRIMELINE ENERGY HOLDINGS INC.
Dr. Ming Wang
CEO
Phone: +44 207.499.8888
Fax: +44 207.499.2288
Toll Free: 1.877.818.0688
Email: IR@pehi.com
CHF INVESTOR RELATIONS
Robin Cook
Senior Account Manager
Phone: +1 416.868.1079 ext. 228
Fax: +1 416.868.6198
Email: robin@chfir.com
Please visit the Company’s website at www.pehi.com. Should you wish to receive Company news via email, please email bren@chfir.com and specify “Primeline Energy” in the subject line.
Forward-Looking Statements
Some of the statements in this news release contain forward-looking information, which involves inherent risk and uncertainty affecting the business of Primeline. These statements relate to Primeline’s expectation that it will be able to conclude arrangements to generate funds to repay the Loan. Actual results may vary from those anticipated in such statements. Such arrangements may not be entered into on the terms expected or at all. If not, Primeline may be unable to repay the Loan. Exploration for oil and gas is subject to the inherent risk that it will not result in a commercial discovery.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.