Azabache Energy Inc Announces Non-Brokered Private Placement

Azabache Energy Inc announced that it intends to proceed with a non-brokered private placement (the Private Placement) of a minimum of 31,250,000 common shares in the capital of the Company (the Common Shares) at a price of $0.16 per Common Share for minimum gross proceeds of $5,000,000 and a maximum of 62,500,000 Common Shares for maximum gross proceeds of up to $10,000,000. Closing of the Private Placement is expected to occur on or about March 21, 2013 or such other date as the Company may determine, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange (the Exchange). The Common Shares issued pursuant to the Private Placement will be subject to resale restrictions imposed by applicable securities laws and the policies of the Exchange. The Company intends to use the proceeds from the Private Placement to complete fracture stimulation and work over of the Company's COVx-2 well in the Vaca Muerta formation as well as for general working capital and general corporate purposes. In connection with the Private Placement, the Company may pay eligible persons a finder's fee of up to 6% of that portion of the proceeds of the Private Placement that result from such parties efforts, subject to compliance with applicable securities laws.