Buccaneer Energy Limited (ASX:BCC) Early Termination of SpringTree Facility And Additional Investment

Sydney, Mar 2, 2011 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) (PINK:BCGYF) is pleased to advise that it has reached an agreement by mutual consent for the early termination of the convertible loan funding facility with SpringTree Special Opportunities Fund, LP ("SpringTree").
Buccaneer entered into the funding agreement with SpringTree in February 2010. Under the funding agreement, in accordance with its obligations under the agreement, SpringTree has provided a total amount of A$8,350,000 in funding since the establishment of the facility.

SpringTree has agreed to waive the A$200,000 termination fee that would have otherwise been due because of the early termination of the existing facility. A final issuance of shares under the original agreement will take place in early March 2011 as repayment of the A$800,000 drawn down made under the facility in early February 2011.

The funding provided by SpringTree has proved invaluable to Buccaneer and its development over the last 12 months. The funding has underpinned the Company's entry into Alaska thus providing the opportunity for significant future growth.

Additional Investment

In addition, SpringTree has agreed to invest an additional A$2,500,000 in the Company by way of a one-off investment in two convertible securities, to be received in a lump-sum of A$2,500,000. The investment in the convertible securities will be interest free and on the following key terms:

Convertible Security # 1

Amount: A$1,000,000

Conversion: At any time before 28 February 2012, at 92.5% of the average of 5 lowest daily volume-weighted average prices of the Company's shares during a specified period prior to the date of conversion.

Convertible Security # 2

Amount: A$1,500,000

Conversion: Subject to shareholder approval but in any event with a nonconversion period of 90 days after subscription.

On shareholder approval, after the initial 90 day period and before 28 February 2012, at 92.5% of the average of 5 lowest daily volume-weighted average prices of the Company's shares during a specified period prior to the date of conversion.

The shares issued on conversion of both convertible securities will be the subject of a "lock up and leak out" provision. This allows that, following the conversion of the convertible security, no more than the greater of 1 million shares or 10% of the trading volume of the shares on the ASX may be sold by SpringTree on the ASX on any given day.

Contact

Dean Gallegos Mob: +61-416-220-007 Tel: +61-2-9233-2520 http://www.buccenergy.com