Donnycreek Energy Inc. reports that the Company is undertaking a private placement of up to $3,500,000. These funds will be raised through the issuance of a combination of: (i) $1,700,000 of "flow-through" common shares of the Company within the meaning of the Income Tax Act (Canada) at a price of $0.85 per FT Share; and (ii) $1,800,000 of principal amount of ten percent (10%) redeemable, convertible, unsecured debentures of the Company.

The proceeds from the FT Shares will be used to incur eligible exploration and development expenses prior to December 31, 2013 and which will be renounced as Canadian Exploration Expenses for income tax purposes to subscribers effective on or before December 31, 2012.

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