Lion Energy Increases Focus on Indonesia Unconventionals

Lion Energy has entered into a binding transaction coordination agreement and convertible loan agreement with KRX Energy and Risco Energy Investments.

The proposed transactions are viewed by Lion as the first steps in a major strategic initiative which will see the company renew its focus on the South East Asian region through substantial exposure to the booming west Indonesian gas markets, the company said.

As a result of this move, Lion:

- Secured a $1.5 million convertible loan facility in favour of the company from Risco;

- Will raise $2,500,000 by the placement of 100,000,000 shares in the company to Risco;

- Will seek shareholder approval to issue up to 80,000,000 new shares to professional and sophisticated investors; and

- Will acquire all of Risco’s rights to a 35% interest in an area of mutual interest agreement which includes various unconventional oil and gas joint study applications onshore Indonesia in consideration for the issue of 39,900,108 Shares.