Altona Energy Regulatory News (ANR)

15 April 2013

Altona Energy Plc

£2m Financing Facility Secured

The Board of Altona Energy Plc ("Altona" or the "Company") the AIM-quoted energy company, is pleased to announce that it has entered into a £2 million Equity Financing Facility ("EFF") with Darwin Strategic Limited ("Darwin"), a majority owned subsidiary of Henderson Global Investors' Volantis Capital ("Henderson Volantis").

Commenting, Christopher Lambert, Chairman said: "We are delighted to receive support from Darwin Strategic and the fund management team at Henderson Volantis. This new £2 million facility gives Altona access to efficient, cost effective financing, as needed. The facility can be used entirely at our discretion and considerably de-risks our future financing."

The EFF agreement with Darwin and Henderson Volantis provides Altona with a facility of up to £2 million which (subject to certain limited restrictions) can be drawn down at any time over the next three years. The timing and floor subscription price of any draw down is always at the complete control and sole discretion of the Company. There are no penalty fees payable for not using the facility.

Altona is under no obligation to make a draw down and may make drawdowns at its discretion, up to the total value of the EFF, by way of issuing subscription notices to Darwin. Following delivery of a subscription notice, Darwin will subscribe and the Company will allot to Darwin new ordinary shares in Altona ('Ordinary Shares').

The subscription price for any Ordinary Shares to be subscribed by Darwin under a subscription notice will be the average of the three lowest Closing Bid Prices of the Ordinary Shares over the 15 trading days following the subscription notice.

Altona is able to specify in each subscription notice a minimum price below which Ordinary Shares will not be issued to Darwin. The Company will have the right (with the consent of Darwin) to modify that minimum price at any time during the relevant Pricing Period.

The number of Ordinary Shares which may be issued under any individual subscription notice may be up to the lower of 25 per cent of the Company's issued share capital following completion of the relevant subscription, or four times the average daily trading volume of Altona's Ordinary Shares over the 15 trading days preceding the issue of the relevant subscription notice. This may be reduced in certain circumstances, including where the minimum price is not maintained.

The maximum amount of a subscription notice may not exceed £500,000 without Darwin's permission. Darwin is entitled to a commission of up to 5 per cent of amounts subscribed but may agree with Altona in lieu thereof for the subscription price for the Ordinary Shares to be discounted by 5 per cent.

There is also an over-allotment facility available to Altona, under which the Company may authorise Darwin, at Darwin's discretion, to increase the amount of the draw down by up to the aggregate undrawn amount under the EFF. Darwin may direct allotments under the EFF to its parent fund, Henderson Volantis.

Darwin and Altona may mutually agree at the end of the pricing period to a variation of subscription price. This may allow for a larger subscription via any over-allotment facility authorised by the Company.

The issuance of a Subscription Notice is conditional upon the satisfaction of certain Subscription Notice Conditions which have been agreed between Darwin and Altona. Any subscription notice which Altona may issue will only be valid to the extent that it has the requisite shareholder authority to issue the maximum number of Ordinary Shares that Darwin may be required to subscribe under the relevant subscription notice.

Darwin and Altona may terminate the EFF agreement if certain conditions are not met.

In conjunction with the EFF, Altona has entered into a warrant agreement with Darwin dated 12 April 2013 to subscribe for up to 4,500,000 Ordinary Shares, such warrants to be exercisable for up to 36 months at a 30% premium to closing mid-market price from the date of the warrant agreement.