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To: Goose94 who wrote (9726)	11/18/2014 10:02:07 AM
From: Goose94	Read Replies (1) \| Respond to of 203376

WesternZagros Resources (WZR-V) Nov 18, '14 is pleased to announce the successful closing of its previously announced rights offering which expired on November 14, 2014. The Rights Offering, together with the equity backstop arrangement provided by the Company's largest shareholder, Crest Energy International LLC, generated CDN$200 million in gross proceeds to the Company which will be used to fund development costs on the Company's Kurdamir and Garmian blocks in the Kurdistan Region of Iraq and for general and administrative purposes. "We are very pleased to have successfully completed the rights offering and related equity backstop arrangement with Crest which secures the financing necessary to bring our significant oil and gas discoveries into production and generate cash flow. With our financing secure, we look forward to progressing the development of these assets with our co-venturers and the Kurdistan Regional Government. I want to thank all of our shareholders who participated in the rights offering for their ongoing support of WesternZagros and especially wish to thank Crest for its unwavering support and confidence in WesternZagros and the significant value potential of our substantial oil and gas resources," said Simon Hatfield, WesternZagros's Chief Executive Officer. The Company issued an aggregate of 32,937,293 common shares of the Company ("Common Shares") at a subscription price of CDN$0.65 per share pursuant to the Rights Offering, including 7,868,629 Common Shares to Crest. In addition, Crest purchased 274,755,015 non-voting Class A Preferred Shares, Series 1, of the Company ("Non-Voting Shares") at a price of CDN$0.65 per share on a private placement basis pursuant to the equity backstop agreement between the Company and Crest dated August 14, 2014. As a result, there are now a total of 511,894,803 Common Shares and 274,755,015 Preferred Shares issued and oustanding and Crest now holds 101,867,066 (19.9%) of the outstanding Common Shares and 100% of the Non-Voting Shares which are convertible into Common Shares on a one to one basis upon certain terms and conditions. In addition, as previously announced, Crest has agreed to provide the Company with debt financing of up to US$200 million, available in two tranches. The first tranche is for up to US$150 million and will be available to be drawn on or after October 1, 2015 and the second tranche is for up to US$50 million and will be available on or after June 1, 2016. FirstEnergy Capital Corp. acted as dealer manager and Kingsdale Shareholder Services acted as information agent for the Rights Offering. The Common Shares issued to Crest were issued pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and are subject to resale restrictions in the United States. The Non-Voting Shares issued to Crest were issued pursuant to applicable exemptions from prospectus requirements of the provinces of Canada and pursuant to an exemption from the registration requirements of the U.S. Securities Act, and are subject to resale restrictions until March 19, 2015 in accordance with applicable Canadian securities laws and to resale restrictions in the United States. About WesternZagros Resources Ltd. WesternZagros is an international natural resources company focused on acquiring properties and exploring for, developing and producing crude oil and natural gas in Iraq. WesternZagros, through its wholly-owned subsidiaries, holds a 40 percent working interest in two Production Sharing Contracts with the Kurdistan Regional Government in the Kurdistan Region of Iraq. WesternZagros's shares trade in Canada on the TSX Venture Exchange under the symbol "WZR". WesternZagros Resources Ltd. Greg Stevenson Chief Financial Officer (403) 693-7007 WesternZagros Resources Ltd. Tony Kraljic VP Business Development (403) 693-7011 WesternZagros Resources Ltd. Lisa Harriman Manager of Investor Relations (403) 693-7017 investorrelations@westernzagros.com www.westernzagros.com