AVANTI ENERGY STARTS DRILLING VUA; MILLER NO. 1 WELL

Tuesday January 14, 2014

Mr. John McIntyre reports

AVANTI ENERGY BEGINS DRIILING VUA; MILLER #1 WELL; ANNOUNCES FINANCING

Avanti Energy Inc. has commenced drilling the VUA; Miller No. 1. The VUA; Miller No. 1 well will be directionally drilled to 9,003 feet to test seven to eight reservoir targets within a high side closure. The company has a 25-per-cent working interest in the well and expects that drilling will take approximately two weeks to complete.

Avanti president John McIntyre commented: "We are excited to be under way with drilling this highly prospective well. The Cowpen Creek field has produced over five million barrels of oil and seven billion cubic feet of gas since it was discovered in the early 1950s and we believe we have an excellent target to test."

Additionally, the company announces that it will undertake a non-brokered private placement to issue up to 6.9 million common shares of the company at a price of 14.5 U.S. cents per share for gross proceeds of approximately $1-million (U.S.) and/or the Canadian-dollar equivalent. The placement is expected to be completed on or before Feb. 7, 2014. The private placement is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. Securities issued under the placement will be subject to a four-month hold period which will expire four months from the date of closing. The proceeds from the placement will be used for general working capital purposes.


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