Emerald Bay Energy Inc. has entered into a loan agreement (the "Loan Agreement") with an arm's length lender (the "Lender") in the principal amount of $1,500,000 (the "Loan"). The Loan will bear interest at a rate of 10% per annum, compounded monthly, with a term ending August 15, 2013.

The proceeds of the Loan will be used primarily to fully repay its current lending arrangement with remaining funds being used for general working capital. In addition to industry standard security, the Loan Agreement is also secured by a promissory note and security over the oil and gas assets of the Corporation.

Tags: Emerald Bay Energy Inc.