Dixie Energy Trust announce a proposed private placement financing and provide an update on its proposed acquisitions and operational activities.

Brokered and Non-Brokered Financings

Dixie has entered into an engagement agreement with Casimir Capital Ltd. ("Casimir") as lead agent on behalf of a syndicate of investment dealers (the "Agents") pursuant to which Casimir has agreed to use its reasonable commercial efforts to solicit subscriptions for trust units ("Units") of Dixie (the "Brokered Financing"). Dixie is also concurrently conducting a non-brokered private placement of Units (the "Non-Brokered Financing", and together with the Brokered Financing, the "Financings").

Pursuant to the Financings, Dixie will issue up to 15,000,000 Units at a price of C$0.80 per Unit for total gross proceeds of up to C$12,000,000. A maximum of 8,750,000 Units will be issued pursuant to the Non-Brokered Financing. Dixie intends to use the net proceeds of the Financings to fund the purchase of additional working interests (the "Additional Working Interests") in certain oil and gas leases located in Mississippi and Alabama in which it currently holds an interest (the "Fletcher Acquisition"), the details of which were announced on May 30, 2013 and are set out below, and to fund Dixie's 2013 capital expenditure program and for general working capital requirements.

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