Alston Announces Initial Closing of Brokered Private Placement

ID: 1069233
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(businesspress24) - CALGARY, ALBERTA -- (Marketwire) -- 12/30/11 -- Alston Energy Inc. (TSX VENTURE: ALO) ("Alston") is pleased to announce that it has closed the first tranche of its previously announced private placement financing (the "Offering") for gross proceeds of $338,550. Pursuant to the Offering, Alston issued 1,230,000 common shares on a "flow-through basis" pursuant to the Income Tax Act (Canada) (the "Tax Act") (the "Flow-Through Shares") at a purchase price of $0.20 per Flow-Through Share and 617,000 common shares at a purchase price of $0.15 per common share. After giving effect to the first tranche of the Offering, Alston currently has 24,301,930 common shares issued and outstanding. All of the securities issued pursuant to the first tranche of the Offering will be subject to a hold period expiring on May 1, 2012.

Integral Wealth Securities Limited acted as agent for the Offering. In connection with the Offering, Alston paid a commission equal 8% of the gross proceeds raised under the Offering (except with respect to subscriptions from President's list subscribers) and issued an aggregate of 113,760 broker warrants, each broker warrant entitling the holder to purchase one Common Share at $0.20 per share until December 30, 2013.

The proceeds of the Offering will be used to finance Alston's exploration program, with the gross proceeds from the sale of the Flow-Through Shares to be used to incur eligible "Canadian Exploration Expenses" (as defined in the Tax Act) which will be renounced in favour of the subscribers of the Flow-Through Shares effective on or before December 31, 2011.

Forward-Looking Statements: All statements, other than statements of historical fact, set forth in this news release, including without limitation, assumptions and statements regarding future plans, expenditures, operations and objectives of Alston are forward-looking statements that involve substantial known and unknown risks and uncertainties. Some of these risks and uncertainties are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, availability of materials, equipment and third party services, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by Alston at the time of preparation, may prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:


Alston Energy Inc.
Don K. Umbach
President
(403) 245-4261



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published by: MARKETWIRE
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Date: 12/30/2011 - 15:01
Language: English
News-ID 1069233
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Kontakt-Informationen:
Firma: Alston Energy Inc.
Ansprechpartner: Feedback to businesspress24.com about Pressrelease-id:
Stadt: CALGARY, ALBERTA
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