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CYRR - Canary Resources Announces Private Equity Placement
Jun 25, 2007 9:35:00 AM
STILWELL, KS -- (MARKETWIRE) -- 06/25/07 -- Canary Resources Inc. (PINKSHEETS: CYRR) ("Canary") today announced that it has closed a $585,000 tranche of a private equity placement at a price of $0.40 per unit. Each unit comprises one share of common stock of Canary, plus one half of an A-Warrant, plus one half of a B-Warrant. Each whole A-Warrant entitles the holder to purchase one share of common stock of Canary for $1.00 if exercised within four years. Each whole B-Warrant entitles the holder to purchase one share of common stock of Canary for $1.50 if exercised within four years. In combination with Canary's recently announced joint venture Drilling Program with KC Clean Energy LLC, the additional capital will be used for development of coal-bed methane gas in the Eastern Forest City Basin of Kansas and Missouri.

Canary has also reached agreement with purchasers under the Securities Purchase Agreement dated July 22, 2005 regarding liabilities resulting from failure to satisfy certain obligations of the Securities Purchase Agreement. Canary has issued 4,559,225 common shares to the purchasers and paid $17,561.75 in cash in order to discharge liabilities of $1,841,250.60 and is no longer subject to liabilities under the Securities Purchase Agreement for any previous deficiencies. The issue price of the 4,559,225 common shares was equivalent to $0.40 per share.

As a result of the private placement and the issuance of shares to purchasers under the Securities Purchase Agreement, Canary's outstanding common stock has increased from 30,792,700 shares to 36,814,425 shares. Canary has outstanding 18,125,000 shares of Class A Convertible Preferred Stock which are convertible into common shares on a one-for-one basis.

Canary Resources Inc. is an independent Oil and Natural Gas Company engaged in the acquisition, exploitation, production and development of oil and natural gas properties in Johnson and Miami Counties, Kansas, and in Bates and Cass Counties, Missouri, for which it is the operator.

Portions of this document include "forward-looking statements," which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this document are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential" and similar expressions. Actual results may vary materially from management's expectations and projections expressed in this document. Certain factors that can affect the Company's ability to achieve projected results include, among others, production variances from expectations, uncertainties about estimates of reserves, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, environmental risks, drilling and operating risks, risks related to exploratory and development drilling, competition, government regulation and the ability of the Company to implement its business strategy. Copyright 2007. All rights reserved Canary Resources Inc.

Additional information on Canary Resources Inc. is available from:
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Or visit the Company's website at http://www.CanaryResources.com