Canadian Shells

[Tackler]

LL Lamplighter Energy arranges financing for restructuring

2005-06-06 14:18 ET - News Release

Mr. Alykhan Mamdani reports

LAMPLIGHTER ENERGY LTD. ANNOUNCES RESTRUCTURING PLANS

Lamplighter Energy Ltd.'s board of directors, as elected pursuant to Lamplighter's annual meeting on May 25, 2005, has reviewed the business of the corporation and determined that significant restructuring of the business is required. As reported in Stockwatch on May 30, 2005, the operator for its primary oil wells in Saskatchewan has placed a lien on its properties in order to recover approximately $250,000 in debt. In addition, a number of other debts of the corporation are past due. The lien has effectively eliminated the corporation's cash flow.

As such, the corporation has taken measures to significantly reduce overhead and eliminate discretionary expenditures. In addition, the corporation announces a proposed non-brokered private placement of up to 3.6 million common shares at a price of seven cents per share for gross proceeds of $252,000. It is anticipated that the directors of the corporation will subscribe for 35 per cent of the private placement, or more as required.

Closing of the private placement will be subject to the successful negotiation with certain of the corporation's creditors. The proceeds of the private placement will be used for immediate working capital purposes and to restructure the business of the corporation.

In addition, the corporation is pleased to announce the addition of Andrew Osis to its board of directors. Mr. Osis is currently president of Trissio Corp., a corporate advisory and merchant capital corporation. He is a former vice-president, global banking, for RBC Dominion Securities and has extensive experience in the capital markets and energy sector. He is currently a director of Delphi Energy Corp., a Toronto Stock Exchange-listed oil and gas company and Z28 Capital Corp., a TSX Venture Exchange-listed capital pool company.

Lamplighter also announces that it intends to grant 100,000 stock options to each of Andrew Osis, Alykhan Mamdani, J. Kenney Berscht and Eugene Chen, all directors of the corporation, upon completion of its proposed private placement. The stock options will be exercisable for a period of five years from the date of the grant at a price of 10 cents per share.