TAG Oil Ltd. has entered into an agreement with Dundee Securities Ltd. (Bookrunner and Co-Lead Underwriter), whereby Dundee Securities Ltd., Casimir Capital Ltd. (Co-Lead Underwriter), Cormark Securities Inc., GMP Securities L.P., Mackie Research Capital Corporation and M Partners Inc. (collectively, the 'Underwriters'), have agreed to purchase, on a bought deal basis 2,871,000 common shares (the 'Common Shares') of the Company at a price of $10.45 per Common Share, for aggregate gross proceeds of $30,001,950 (the 'Financing').

The Company has granted the Underwriters an option to purchase up to an additional 15% of the Financing, at a price of $10.45 per common share, exercisable in whole or in part at any time prior to 30 days after the Closing Date. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the offering will be approximately $34,500,000.

Tags: TAG Oil Ltd.