| ||August 24, 2010|
Gas Linked Debenture Financing Update and Non-Brokered Private Placement
| ||Thunderbird Energy Corp. (TSX-V: TBD) (the "Company" or "Thunderbird") announces that further to the Company's news release dated July 19, 2010 concerning the $7.5 million natural gas linked debenture issue, Canaccord Genuity Corp. has been engaged on a commercially reasonable efforts basis to raise up to $2.5 million of the issue. Canaccord will receive a cash commission of 7.5% as well as 3 year Agent's Warrants to purchase one additional common share of the Company at a price of $0.20. The number of Agent's warrants will be calculated by dividing 10% of the proceeds raised by $0.20. Participants in the non-brokered portion of the offering will be offered similar compensation.|
All of the other terms of the Gas Linked Debenture financing as announced July 19, 2010 remain the same.
The Company also announces that it will be conducting, on a non-brokered best-efforts basis, a private placement of up to $2,000,000 consisting of 13,333,333 units of the Company at a price of $0.15 per unit. Each unit consists of one common share and one non-transferable share purchase warrant. Each warrant is exercisable to purchase one common share of the Company at a price of $0.20 per share for two years. If, following the expiry of the 4 month hold period, the closing price of the Company's shares exceeds $0.30 for 20 consecutive trading days, the term of the warrants will be automatically reduced to a period of 30 days following the issuance of a press release announcing the reduced exercise term.
Although the financing is non-brokered, Thunderbird may pay a finders fee to persons that arrange for the sale of Units equal to 7.5% of the gross proceeds raised, as well as two year Agent's Warrants to purchase up to 10% of the Units sold at a price of $0.15 per Unit. Insiders of Thunderbird and their associates may purchase in excess of 25% of the issue.
Proceeds of the financings are intended to be used to refinance the Company's existing bank credit facility, for additional property acquisitions and for working capital.
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