Birch Lake Energy Inc And Veraz Petroleum Ltd. Agrees To Terminate Arrangement Agreement; Closes First Tranche Of Private Placement

Birch Lake Energy Inc and Veraz Petroleum Ltd. announced that the proposed arrangement pursuant to which Birch Lake was to acquire all of the issued and outstanding shares of Veraz did not receive the requisite shareholder approval at the special meeting (the "Special Meeting") of shareholders of Veraz held on December 21, 2012 to consider the arrangement, and as a result Birch Lake and Veraz agreed to terminate the arrangement agreement in respect of the proposed arrangement and will not be proceeding with the arrangement. Birch Lake is proceeding with its previously announced non-brokered private placement of common shares and flow-through shares. Birch Lake completed the first tranche of the private placement for gross proceeds of $526,200, as announced on December 3, 2012 and intends to complete a final tranche on December 31, 2012. For further information on the private placement, please refer to the press releases of Birch Lake dated November 6, November 29 and December 3, 2012.