Buccaneer Energy Limited (ASX:BCC) Announce Shareholders Purchase Plan and Placement Agreement

Sydney, Mar 8, 2011 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) (PINK:BCGYF) is pleased to advise that it will be undertaking a Shareholders Purchase Plan ("SPP") to raise up A$16,596,485 by the issue of up to 174,699,846 shares at an issue price of A$0.095 per share.

Only those shareholders who were registered as shareholders at the close of business on 7 March 2011 and who are registered in Australian and New Zealand are eligible to participate in the SPP ("Eligible Shareholders").

The Company has approximately 2,800 shareholders who qualify to participate in the SPP.

Eligible Shareholders will be able to apply for up to A$15,000 of shares in the Company at the issue price of A$0.095 per share with no fees or charges being associated with the subscription of the shares under the SPP.

The funds raised under the SPP will be used for the following purposes:

- fund capital expenditure associated with the drilling of the first well at Kenai Loop, onshore Cook Inlet, Alaska;

- provide funds to support the acquisition of a Jack-Up rig to drill the Company's offshore properties located in the Cook Inlet, Alaska; and

- provide additional working capital.

The funds raised under the SPP will substantially strengthen the Company's balance sheet and enable the Company to take advantage of opportunities as they arise within Alaska and other spheres of interest.

It is still the intention of the Company to put in place bridge funding of the ACES program with an overseas investment bank. Once this has been put in place the Company will seek to draw down on this facility for expenditure already undertaken at Kenai Loop.

Placement Agreement

The Company is also pleased to announce that it has entered into a Placement Agreement with Helmsec Global Capital Pty Limited ("Helmsec") pursuant to which Helmsec will use its best endeavours to place shares not subscribed for by shareholders under the SPP ("Shortfall Securities") up to the value of A$16,596,485. The issue of the Shortfall Securities is subject to shareholder approval.

Helmsec will be paid a fee of 5.5% of the amount raised by the placement of the Shortfall Securities. Helmsec will also be issued options equivalent to 5.0% of the amount of Shortfall Securities placed under the Placement Agreement. These options will be unlisted, have an exercise price of A$0.10 and expire 5 years from the date of issue.

Shareholders Meeting

The Company will be calling a meeting of shareholders in April 2011 to ratify previous security issues, approve new issues including (but not limited to the convertible security to be issued to SpringTree (as announced to the market on 2 March 2011) and relevant resolutions relating to the Placement Agreement.

Timetable

The anticipated timetable for the SPP and shareholders meeting to approve the placement of the Shortfall Securities is as follows:

- Record Date of the Share Purchase Plan (7.00 pm Sydney time): 7 March 2011

- Despatch Date of Share Purchase Plan offer documentation: 11 March 2011

- Despatch Date of Notice of Meeting Materials: 15 March 2011

- Opening Date of Share Purchase Plan: 16 March 2011

- Closing Date of Share Purchase Plan: 13 April 2011

- Shortfall Notification Date: 15 April 2011

- Proposed Issue and allotment date of Share Purchase Plan Shares: 18 April 2011

- General Meeting Date: 18 April 2011

- Quotation of Share Purchase Plan Shares: 19 April 2011

- Proposed Issue and allotment date of Shortfall Securities/Placement Date: 28 April 2011

- Quotation of Shortfall Securities: 29 April 2011

About Helmsec:

Helmsec Global Capital Limited ('Helmsec') is a Mining and Resources-focused Institutional Sales and Trading, Equity Capital Markets and Corporate Advisory House.

Helmsec's business involves offering the full-range of Corporate Advisory and Equity Capital Market services globally to small and mid-capitalisation companies.

Headquartered in Sydney with offices in Melbourne, Hong Kong and Singapore, Helmsec's prime focus is to the world-wide natural resources and mining industries. Core to Helmsec's business is its partnership philosophy, technical and advisory expertise, and extensive global network with "on the ground" presence across Asia.

Helmsec's personnel have developed an exemplary track record with total transactions completed in excess of A$440 Million in CY 2010 utilising Helmsec's relationships with institutional investors and end-users in Australia, Asia, Europe, UK, Middle-East and the USA.

Contact

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