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Solimar Energy Limited: Share Interest Payment Notice

Solimar Energy Limited: Share Interest Payment Notice

MELBOURNE, AUSTRALIA--(Marketwire - March 22, 2013) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Solimar Energy Limited (TSX VENTURE:SXS)(ASX:SGY) ("The Company") provides notice to the holders of outstanding debentures ("February Debentureholders"), which were issued pursuant to the trust indenture dated February 10, 2012, as amended July 27, 2012, (the "February Indenture"), that the Company elects to satisfy its obligation to pay interest to February Debentureholders on March 31, 2013 by issuing up to an aggregate of 1,380,831 common shares of the Company ("Common Shares") (subject to adjustment in accordance with the terms of the February Indenture) being that number of Common Shares equal to the number obtained by dividing the amount of interest due and payable by the Discounted Market Price as defined in the TSX-V policies, and which is currently C$0.05.

The Company also provides notice to the holders of outstanding debentures ("June Debentureholders") which were issued pursuant to the trust indenture dated June 26, 2012 (including supplemental indentures thereto, the "June Indenture") that the Company wishes to satisfy its obligation to pay interest to June Debentureholders on March 31, 2013 by issuing and delivering up to an aggregate of 2,169,866 Common Shares, also at the Discounted Market Price.

The June debentureholders are required to approve any issue of Common Shares to satisfy the obligation to pay interest where the price calculated under the formula in the June Indenture (90% of the volume weighted average price of the Common Shares on the TSX Venture Exchange for the 10 consecutive trading days ending on the 19th day of the final month of the quarter) is below C$0.05. In the case of the quarter ended March 31, 2013 the formula calculated a price below that threshold.

As a result the Company has requested approval from the June debentureholders to satisfy its obligation to pay interest through issuing Common Shares at C$0.05. At the time of this notice approval has not yet been received. If no approval is given the Company is required to satisfy the interest due the June Debentureholders for the quarter through a payment of cash.

This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur, including without limitation statements relating to intended testing, work programs, financing and associated timelines. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Solimar Energy Limited cannot assure that actual results will be consistent with these forward-looking statements. They are made as of the date hereof and are subject to change and Solimar Energy Limited assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Prospective investors should not place undue reliance on forward-looking statements. These factors include the inherent risks involved in the exploration for and development of crude oil and natural gas properties, the uncertainties involved in interpreting drilling results and other geological and geophysical data, fluctuating energy prices, the possibility of cost overruns or unanticipated costs or delays and other uncertainties associated with the oil and gas industry.

ABN 42 112 256 649

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information:
Solimar Energy Limited
Will Satterfield
Chief Executive Officer
+1 805 643 4100
www.solimarenergy.com.au



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