Torex Announces Closing of Equity Financing by Lime Rock Partners and 2000 Capital Budget

12/14/1999

CALGARY, December 14,1999 – Torex Resources Inc. (“Torex”) is pleased to announce that it has closed a private placement financing consisting of 2,636,000 flow through special warrants at $1.25 each and 800,000 common shares at $1.25 each for total gross proceeds of $4,295,000. Each flow through special warrant is convertible into a common share of Torex at no additional cost.

Pursuant to the private placement, two funds managed or advised by Lime Rock Partners, namely Riverside Investments, LLC and Friends of Lime Rock LP, acquired 762,932 and 37,068 common shares of Torex, respectively. Funds managed or advised by Lime Rock now hold an aggregate of 5,800,000 common shares of Torex (approximately 21.3% after giving effect to the exercise of the Special Warrants). The acquisitions were for investment purposes. Lime Rock is a private equity firm based in Westport, Connecticut that specializes in providing growth capital to small and mid-capitalization energy companies worldwide.

National Bank Financial Corp., Griffiths McBurney & Partners, and Peters & Co. Limited were engaged as agents in connection with the offering.

The gross proceeds of $4,295,000 will be used to finance Torex’s remaining 1999 and 2000 exploration and development programs. With the close of this financing and conversion of the special warrants, Torex will have 27.296 million shares outstanding.

Torex’s 2000 Capital program of $21.3 million will be funded from cash flow, bank lines, and the use of proceeds from this issue. In 2000 Torex plans to spend $6.3 million on land & seismic, $4.1 million on facilities and $10.9 million on exploration and development drilling. Torex is planning 41 gross (27.5 net) wells in 2000 consisting of 23 exploration wells and 18 development wells.

The Toronto Stock Exchange has neither approved or disapproved of the contents of this press release.

 

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