Canadian Shells

[Tackler]

I hope this isn't another black dog...

Lamplighter merger target Blackdog to fetch $3-million

2005-10-20 14:12 ET - News Release

Mr. Alykhan Mamdani reports

Lamplighter Energy Ltd. has provided an update to its news release in Stockwatch of Oct. 12, 2005, regarding the reverse takeover of Lamplighter by Blackdog Resources Ltd. by way of amalgamation.

Blackdog has finalized the terms of its proposed private placements, and intends to raise up to $1-million by offering up to 2.5 million Blackdog common shares at a price of 40 cents per share and up to $2-million by offering up to four million Blackdog common shares as flow-through shares for the purposes of the Income Tax Act (Canada) at a price of 50 cents per share. Blackdog intends to proceed with the private placements whether or not the amalgamation is completed. Subscribers to the private placements will receive common shares of Blackdog in the event that the private placements close prior to closing of the amalgamation, or common shares of the amalgamated corporation in the event that the private placements close after closing of the amalgamation. Blackdog may pay a commission, in cash or shares, of 6 per cent on subscriptions from the non-flow-through private placement and 4 per cent on subscriptions from the flow-through private placement.

Blackdog intends to use the net proceeds from the private placement for the acquisition of oil and gas production and drilling prospects in Western Canada. There is no assurance that an acquisition of oil and gas properties will occur prior to the shareholders meetings of Lamplighter and Blackdog to consider the amalgamation, or at all.

Completion of the amalgamation is subject to a number of conditions, including but not limited to acceptance by the TSX Venture Exchange and shareholder approval. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the information circular to be prepared in connection with the transaction, any information released or received with respect to the amalgamation may not be accurate or complete and should not be relied upon. Trading in the securities of Lamplighter and Blackdog should be considered highly speculative.