NAL Energy Corporation Completes $150 Million Convertible Debenture Offering

CALGARY, ALBERTA--(Marketwire - Feb. 21, 2012) -

NOT FOR RELEASE OVER UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

NAL Energy Corporation NAE ("NAL" or the "Corporation") today announced it has completed its previously announced bought deal offering of $150 million principal amount of 6.25% convertible unsecured subordinated debentures maturing March 31, 2017, which included the exercise, in full, of the over-allotment option granted to the underwriters under the offering. RBC Capital Markets, BMO Capital Markets and CIBC co-led the syndicate of underwriters for the offering which also included Scotia Capital Inc., TD Securities Inc., National Bank Financial Inc., Canaccord Genuity Corp., Raymond James Ltd., GMP Securities L.P. and Peters & Co. Limited.

NAL will use the net proceeds of this financing to repay outstanding indebtedness under the Corporation's existing bank credit facility, to fund the maturity of the existing 6.75% convertible unsecured subordinated debentures due August 2012 and for general corporate purposes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The securities have not been and will not be registered under the Securities Act and may not be offered or sold to U.S. Persons or in the United States absent registration or an applicable exemption from registration requirements.

ABOUT NAL

NAL Energy Corporation generates returns for its shareholders by pursuing a strategy of acquiring, producing and selling crude oil, natural gas and natural gas liquids from assets based in southeastern Saskatchewan, central Alberta, and northeastern British Columbia.