CALGARY, ALBERTA--(Marketwire - Feb. 14, 2012) - Jura Energy Corporation ("Jura") (TSX:JEC) announced today that it has entered into a C$2,000,000 credit facility (the "Facility") with an individual lender (the "Lender") who expressed an interest in investing in the Private Placement (as defined below). Jura will draw down on the Facility over time to satisfy certain outstanding liabilities and to fund its operations pending the closing of the transactions that were approved by the shareholders of Jura at the special meeting of the shareholders that was held on January 17, 2012 (the "Meeting"). The transactions that were approved at the Meeting (the "Transactions") include the following:

  1. The consolidation of the common shares in the capital of Jura on the basis of one (1) post-consolidation common share of Jura (each a "New Jura Share") for every ten (10) pre-consolidation common shares of Jura;
  2. The issuance of 50,659,076 New Jura Shares to Eastern Petroleum Limited ("EPL") in order for Jura to acquire all of the issued and outstanding shares in the capital of Spud Energy Pty Limited from EPL and the reconstitution of the board of directors of Jura (the "Acquisition"); and
  3. The non-brokered private placement of 5,000,000 New Jura Shares at a price of C$1.00 per New Jura Share, 1,000,000 of which are anticipated to be issued to insiders of Jura (the "Private Placement").

The Facility is repayable at the demand of the Lender on the earlier of (i) January 31, 2013 and (ii) ten (10) business days after the closing of the Transactions. The principal amount outstanding at any time under the Facility carries interest at the prime rate and the outstanding principal and interest is convertible at the option of the Lender on the basis of one (1) common share in the capital of Jura for each C$1.00 so converted (the "Conversion Option"). Jura is making an application to the Toronto Stock Exchange ("TSX") for the listing of the common shares in the capital of Jura that may be issued upon the exercise of the Conversion Option on the TSX and the Conversion Option remains subject to TSX approval.

The Facility is designed as a bridge to the closing of the Private Placement. It is anticipated that the Facility will either be: (i) repaid in full following the closing of the Private Placement or (ii) converted into New Jura Shares pursuant to the Conversion Option. In the latter case, the Private Placement may be reduced by the number of New Jura Shares issued upon the exercise of the Conversion Option.

Closing of the Transactions is subject to satisfaction of all other conditions precedent to closing, including obtaining conditional listing approval of the New Jura Shares on a Canadian stock exchange, which is in progress. On December 27, 2011, an application was also made to the Director General of Petroleum Concessions in Pakistan ("DGPC") to approve the Acquisition and, subject to the conditions precedent to the closing of the Transactions being fulfilled prior thereto, Jura anticipates that it will proceed expeditiously with the closing of the Transactions once it has received DGPC's approval in respect of the Acquisition.

About Jura:

Jura is an international energy company engaged in the exploration, development and production of petroleum and natural gas properties in Pakistan. Jura is based in Calgary, Alberta, and listed on the TSX trading under the symbol JEC. Jura conducts its business in Pakistan through its subsidiary Frontier Holdings Limited.

Forward-looking statements: This document contains statements about expected or anticipated future events, including the approval of the Acquisition by DGPC, Canadian stock exchange approvals, the timing and the nature of the repayment of the Facility and the closing of the Transactions, which are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and Jura's capability to execute and implement its future plans.

Contact Information:

Jura Energy Corporation
Mr. Graham Garner
President & CEO
(403) 266-6364
(403) 266-6365 (FAX)