Westernzagros Resources ltd Closes $123 Million Financing from Crest Energy International

Westernzagros Resources ltd announced that it has closed its previously announced financing with Crest Energy International LLC whereby Crest has purchased from WesternZagros, through a non-brokered, private placement, 51,000,000 Common Shares of the Company at a price of CDN$1.25 per share for gross proceeds of $63.75 million. Crest now holds approximately 19.8% of issued and outstanding Shares. The Common Shares issued to Crest are subject to a contractual hold period until July 19, 2013, pursuant to the terms of the investment agreement entered into between the Company and Crest on March 10, 2013, as well as a statutory hold period of the same length. In addition, pursuant to a restated and amended senior secured loan agreement between the parties, Crest has advanced to the Company USD57.5 million (approx. $59.2 million). The Loan will accrue interest at the rate of 6% per annum and is secured by 10% of the outstanding shares of WesternZagros's operating subsidiary. The Loan, together with all accrued interest, is to be repaid in full on September 30, 2014 including but not limited to certain repayment obligations in the event of future equity offerings by the Company. Proceeds from Private Placement and the Loan will be used for WesternZagros's 2013 capital and operating program pursuant to which it will focus on the continued appraisal of the Kurdamir Oligocene discovery, exploration activities on the Garmian Block and continued appraisal of existing Sarqala discovery.