Candax Energy Inc. has entered into various investment agreements to raise an aggregate of $11,790,000 on a private placement basis.

$9,790,000 is being invested by International Finance Corporation ("IFC") a member of the World Bank Group and $2,000,000 is being invested by Candax directors and senior management. The private placement which was announced by Candax on November 17, 2011 will involve the issuance of up to 214,363,636 units (the "Units") of which: (i) 178,000,000 Units will be issued to IFC (the "IFC Private Placement"); and (ii) 36,363,636 Units, in aggregate, will be issued to Benoit Debray, John Younger, Pascal Mirville, Pierre-Henri Boutant, Stephen Drinkwater, Dominique Didier, M'hamed Ali Bouleymen and Jamil Hamza, each a member of the senior management team at Candax with the exception of M'hamed Ali Bouleymen and Stephen Drinkwater who are non-executive directors of Candax (the "Management Private Placement" and together with the IFC Private Placement, the "Private Placement").

Each Unit will be issued at a subscription price of $0.055, and will be comprised of one common share of Candax (the "Common Shares") and one Common Share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to purchase one Common Share for an exercise price of $0.08 at any time during the 36 months following the closing date of the Private Placement. The Warrants issuable to IFC will be subject to a right of first refusal by Geofinance N.V. ("Geofinance"), the largest holder of Common Shares and also to the right of Candax to accelerate expiry of the Warrants. If all the Warrants issued pursuant to the Private Placement are exercised, such exercise would result in additional funds of over $17,149,000 to Candax.

Benoit Debray, Chairman and Chief Executive Officer of Candax stated, "The large investment by IFC in Candax demonstrates the appeal of Candax and its future prospects. The proceeds of this subscription and the subscriptions of certain members of senior management and a non-executive director of Candax provide Candax with additional working capital to advance its projects in Tunisia, notably, the development of its Robbana field and for general corporate purposes."

Tags: Candax Energy Inc.