Madalena Energy Inc. has entered into an agreement with Haywood Securities Inc. (Haywood), Mackie Research Capital Corporation and RBC Capital Markets (RBC) (collectively the "Co-Lead Underwriters"), on their own behalf and on behalf of a syndicate of underwriters to be determined by the Co-Lead Underwriters (the "Underwriters"), whereby the Underwriters will purchase, on a bought-deal basis, 28,571,500 common shares of the Company (the "Common Shares"), at $0.70 per Common Share, for aggregate gross proceeds to the Company of $20,000,050 (the "Offering"). Haywood and RBC will act as joint book-runners in connection with the Offering.

The Underwriters shall also have the option (the "Over-Allotment Option"), exercisable at any time up to 30 days following closing, in whole or in part, to purchase from the Company up to an additional 15% of the Common Shares sold pursuant to the Offering to cover over-allotments and for market stabilization purposes.

Tags: Madalena Energy Inc.