CARSON CITY, Nev., Sept. 14, 2005 (PRIMEZONE) -- Friendly Energy Corporation (Pink Sheets:FDEG) is pleased to announce that it has received commitments from certain institutional investors, subject to formal documentation, to acquire convertible promissory notes and warrants of the Company for gross proceeds of US$1,000,000. The convertible notes can be converted to common shares on the basis of one common share for every US$.05 in value of notes, subject to adjustment. In addition to the notes, the Company has agreed to issue to the investors warrants exercisable into common shares for 3 years at an exercise price of US$.075. Each investor is entitled to half the number of warrants as the number of common shares that would be issued if the whole note is converted at US$.05
The Company has agreed to registration rights for the investors, although the securities to be issued are restricted and may not be sold or offered in the United States absent registration or an applicable exemption from registration requirements.
The funds will be used to further the development of the Company's projects in Oklahoma and for working capital.
Friendly Energy Corporation is a development company involved in exploration of low risk oil and gas properties in the United States.
This news release contains information that is "forward-looking" in that it describes events and conditions, which Friendly Energy Corporation ("FDEG") reasonably expects to occur in the future. Expectations for the future performance of the business of FDEG are dependent upon a number of factors, and there can be no assurance that FDEG will achieve the results as contemplated herein and there can be no assurance that FDEG will be able to conduct its operations or production from its properties will result from or continue as contemplated herein. Certain statements contained in this report using the terms "may," "expects to," and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond the Company's ability to predict, or control and which may cause actual results to differ materially from the projections or estimates contained herein. FDEG disclaims any obligation to update any forward-looking statement made herein.