ALO.L Regulatory News (ALO)

Alecto Energy plc / EPIC: ALO / Market: AIM / Sector: Exploration & Development

20 December 2010

Alecto Energy plc ('Alecto' or 'the Company'")

Placing

Alecto Energy plc, the AIM listed resource investment company, has raised approximately £2.2 million (before expenses) by way of a placing of 62,402,325 new ordinary shares in the Company at a price of 3.5 pence per ordinary share ('the Placing Shares'), with both new and existing shareholders. In addition, one warrant to subscribe for a new ordinary share is being issued to placees for every two Placing Shares subscribed for ('the Warrants'). The Warrants are exercisable at 5 pence per new ordinary share for a period of two years from the date of admission of the Placing Shares to trading on AIM. 

The net proceeds of the Placing will be used to fund exploration and development at Alecto's gold and base metal licences and two uranium licences located in the Mauritanide mobile belt in Mauritania and for general working capital purposes. The exploration programme is expected to commence in Q1 2011. Additionally, the new funds will be utilised, as per the Company's expansion strategy, to fund additional acquisitions of, and investments in, other precious and base metal projects. In line with this the Company is in discussions with a number of parties and hopes to announce further in due course. 

Alecto Executive Director Damian Conboy said, "Having recently built a portfolio of gold and uranium assets in Mauritania, this placing provides us with the funds to embark upon a defined exploration programme to evaluate and advance the most robust projects within the licence areas to build upon the resource potential already highlighted by SRK Exploration. 

"Additionally, we remain committed to increasing shareholder value through the acquisition of complementary resource assets. We have a foundation in Mauritania which we intend to build on and accordingly are evaluating a number of potential acquisitions that we believe fit our investment criteria."

The Placing Shares represent approximately 34% of the Company's enlarged issued share capital. Application will be made for the admission of the Placing Shares to trading on AIM and it is expected that dealings in the new shares will commence at 8.00 a.m. on 23 December 2010. The Placing Shares will, when issued, rank pari passu in all respects with the existing Ordinary Shares, including the right to receive dividends and other distributions declared following Admission. No application will be made for the Warrants to be admitted to trading on AIM.

**ENDS**

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