Shoal Point Energy Closes Private Placement Financing and Commences Transfer of Operating Responsibilities to Black Spruce Exploration Corp.

The financing was comprised of 99,438,551 units (each, a “Unit”) at a price of $0.06 per Unit for gross proceeds of $5,966,313.09 and 12,498,665 flow-through units (each, a “Flow-Through Unit”) at a price of $0.06 per Flow-Through Unit for gross proceeds of $749,919.90. Each Unit is comprised of one common share in the capital of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant is exercisable for one Common Share at a price of $0.15 per Warrant for a period of 18 months. Each Flow-Through Unit is comprised of one flow-through Common Share and one-half of one Warrant.

In connection with this financing, the Company paid commissions to registered agents totalling $194,722.99 and also issued 3,129,050 broker warrants where each broker warrant entitles the holder to acquire one common share at $0.10 for 18 months.

The proceeds of this financing are being used to fund the deposits which were made to extend the terms of Exploration Licences 1120 and 1097R as previously announced in a press release on January 17, 2013, to reduce accounts payable and for general working capital purposes.

This private placement includes the investment by persons related to Foothills Capital Corp. and Black Spruce Energy Corp. (“BSE”) for a total of $2,100,000 representing 35,000,000 Common Shares which is approximately 9.1% of the total issued and outstanding Common Shares of the Company. In connection with this financing, Shoal Point also issued Foothills Capital Corp. 1,050,000 Units.

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