Dundee Energy Limited Announces Refinancing Terms for the Castor Project

Marketwired

TORONTO, ONTARIO--(Marketwired - Jul 26, 2013) - Dundee Energy Limited ("Dundee Energy" or the "Corporation") (DEN.TO) is pleased to announce that Escal UGS S.L. ("Escal"), the owner of the Castor Project, has arranged for the issuance of euro-denominated senior secured bonds (the "Euro Bonds") totalling EUR1.40 billion. The Euro Bonds are subject to an annual interest rate of 5.756%, payable semi-annually, and are repayable in equal semi-annual instalments over a period of 21 and a half years, with the last payment due in December 2034. The Euro Bonds will be listed on the Luxembourg stock exchange.

The Euro Bonds will be issued by a special purpose vehicle, Watercraft Capital S.A. ("Watercraft"), a Luxembourg corporation. The proceeds from the issuance will be subsequently on-lent to Escal, pursuant to a credit facility between Watercraft and Escal. and will be used by Escal to repay amounts owing pursuant to Escal's existing project financing.

Escal will provide a general security interest against its assets for the benefit of Watercraft to secure Escal's obligations under these arrangements, and the shareholders of Escal shall pledge their respective shares in Escal as part of the overall security package. In addition, the European Investment Bank has committed to provide a standby letter of credit as a form of subordinated credit enhancement instrument in support of the Euro Bonds. The Euro Bonds have been issued a BBB+ rating from Fitch Ratings, Inc. and a rating of BBB from Standard & Poor's.

Ned Goodman, Executive Chairman of Dundee Energy stated "We have been committed to the success of the Castor Project since its concept was originated in the early 1990's. We are delighted that an advantageous long term financing is now in place, and we look forward to the project's commissioning into the Spanish gas system."

The Castor Project is a wholly owned project of Escal. Dundee Energy holds an indirect 24.6% interest in Escal, through its 73.7% interest in Castor UGS Limited Partnership.

ABOUT THE CORPORATION

Dundee Energy Limited is a Canadian-based oil and natural gas company with a mandate to create long-term value for its shareholders through the exploration, development, production and marketing of oil and natural gas, and through other high impact energy projects. Dundee Energy holds the largest accumulation of producing oil and gas assets in Ontario, and indirectly holds a 24.6% interest in the Castor offshore underground natural gas storage facility in Spain. The Corporation's common shares trade on the Toronto Stock Exchange under the symbol "DEN".

FORWARD-LOOKING STATEMENTS

Certain information set forth in these documents, including management's assessment of each of the Corporation's future plans and operations, contains forward-looking statements. Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions or include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's control, including: exploration, development and production risks; uncertainty of reserve estimates; reliance on operators, management and key personnel; cyclical nature of the business; economic dependence on a small number of customers; additional funding that may be required to execute on exploration and development work; the ability to obtain, sustain or renew licenses and permits; risks inherent to operating and investing in foreign countries; availability of drilling equipment and access; industry competition; environmental concerns; climate change regulations; volatility of commodity prices; hedging activities; potential defects in title to properties; potential conflicts of interest; changes in taxation legislation; insurance, health, safety and litigation risk; labour costs and labour relations; geo-political risks; risks relating to management of growth; aboriginal claims; volatility of the Corporation's share price; royalty rates and incentives; regulatory risks relating to oil and natural gas exploration; marketability and price of oil and natural gas; failure to realize anticipated benefits of acquisitions and dispositions; information system risk; and other risk factors discussed or referred to in the section entitled "Risk Factors" in the Corporation's Annual Information Form for the year ended December 31, 2012.

Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Corporation's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Corporation will derive from them. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contact:
Dundee Energy Limited
c/o Dundee Corporation
21st Floor, Dundee Place
1 Adelaide Street East
Toronto, ON M5C 2V9
Dundee Energy Limited
Jaffar Khan
President & CEO
(403) 264-4985
(403) 262-8299
www.dundee-energy.com

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