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Candax Closes $12 Million Private Placement

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TORONTO, ONTARIO--(Marketwire - Feb. 24, 2012) -

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Candax Energy Inc. ("Candax") (TSX: CAX) is pleased to announce that the previously announced private placement has closed. Candax has issued 214,363,632 units (the "Units") at the price of C$0.055 per Unit raising gross proceeds of $11,970,000. Of the Units issued, 178,000,000 Units were issued to International Finance Corporation ("IFC"), a member of the World Bank Group, representing a 17% ownership in Candax and are subject to a four month plus a day hold period under applicable securities laws and 36,363,632 Units were issued as to 9,090,909 Units to Benoit Debray, Chairman and Chief Executive Officer, 8,909,090 Units to John Younger, President, 7,272,727 Units to Pascal Mirville, Chief Operating Officer, 4,545,454 to Pierre-Henri Boutant, Chief Financial Officer, 2,545,454 Units to Dominique Didier, Project Manager, Tunisian Operations, 1,818,181 Units to Stephen Drinkwater, Director, 1,272,727 Units to M'hamed Ali Bouleymen, Director and 909,090 Units to Jamil Hamza, Operations Manager, Tunisian Operations. Each Unit is comprised of one common share and one common share purchase warrant (a "Warrant"). The Warrants may be exercised up to and including February 24, 2015 at an exercise price of $0.08 per common share. If all Warrants are exercised, Candax will raise additional proceeds of over $17 million.

Benoit Debray, Candax's Chairman and CEO stated, "We are very pleased to have IFC as a major shareholder of Candax and that Candax management has invested alongside IFC. Candax plans on utilizing these funds to further develop its assets, with a particular focus on extracting as much value as possible from the Robbana field."

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. IFC helps developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, IFC helped clients create jobs, strengthen environmental performance, and contribute to their local communities-all while driving the investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org.

About Candax

Candax is an international energy company with its head office in Toronto and offices in Tunis and Madagascar. The Candax group is engaged in exploration and the production of oil and gas in Tunisia and holds an interest in an exploration permit in Madagascar.

This news release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the oil and gas industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the ability of Candax to continue to service its debt; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Candax to obtain all permits, consents or authorizations required for its operations and activities; and health safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Candax to fund the capital and operating expenses necessary to achieve the business objectives of Candax, the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Candax. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Candax should not place undue reliance on these forward-looking statements.

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