Diaz Resources Ltd V.DZR

Texas potential is huge!

[hawkowl]

This is major bucks for SHY with R.Lamond putting more money on the line! Posted on this thread because of interest in Texas play. DZR in their small financing is taking advantage of Canadian Tax laws and will finance Canadian drilling with flow through allowing cash flow to be diverted towards Texas. Excellent strategy. ..................................................................... Sharon Announces $5 Million Financing CALGARY, ALBERTA--(CCNMatthews - Dec. 1, 2005) - NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES Sharon Energy Ltd. (TSX VENTURE:SHY) (the "Company") announced today that it has entered into an agreement with Research Capital Corporation to act as agent in respect of the issue of up to 10,000,000 units, at an issue price of $0.50 per unit, on a best efforts basis. Each unit will consist of one common share and one-half of one private placement warrant. Each whole private placement warrant will entitle the holder to acquire one common share at an exercise price of $0.65 per common share for a period of 18 months from closing of the offering. Humboldt Capital Corporation has indicated that it intends to subscribe for 4 million units for an aggregate subscription price of $2,000,000. R.W. Lamond and Humboldt together own 14,925,667 common shares of the Company (38.7%). R.W. Lamond has options to purchase a further 150,000 common shares of the Company. R.W. Lamond owns approximately 67.6% of the outstanding common shares of Humboldt. Assuming the maximum number of units are issued, R.W. Lamond and Humboldt together will own 18,925,667 common shares of the Company (35.4%) and warrants and options exercisable, in aggregate, for the purchase of an additional 2,150,000 common shares. Two of the directors of Humboldt and certain officers are also directors and officers of the Company. The closing of the offering is subject to receipt of all necessary regulatory approvals. The agent will receive a commission of 7% on the units sold, other than units sold to Humboldt, and broker's warrants to purchase 7% of units sold, other than units sold to Humboldt, exercisable for a period of up to 18 months from closing of the offering. The proceeds from this offering will be added to working capital and will be used to fund the Company's exploration and development program in the United States. This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The securities offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. Sharon Energy Ltd. is a junior oil and gas company currently conducting active natural gas exploration programs in Texas and Alberta. Forward-looking statements - statements included in this press release that are not historical facts may be considered "forward-looking statements." All estimates and statements that describe the Company's objectives, goals or future plans are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Sharon Energy Ltd. H.C. (Kip) Ferguson, III President [phone] [phone] (FAX) Houston, Texas or Sharon Energy Ltd. Robert W. Lamond Chairman [phone] [phone] (FAX) Calgary, Alberta Website: www.sharonenergy.com The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.