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Information Releases

August 31, 2011

Laricina Energy Completes Final Closing for Approximately C$140 Million under Previously Announced Equity Private Placement


Laricina Energy Ltd. (“Laricina” or the “Company”) is pleased to announce that it has successfully completed the final closing under its previously announced best-efforts equity private placement financing. The Company has issued an additional 3,299,119 common shares to investors at the same price of C$42.50 per common share for additional gross proceeds of approximately C$140 million through a syndicate co-led by Peters & Co. Limited and BMO Capital Markets. Including the gross proceeds received from the initial closing completed on June 29, 2011, the Company raised total gross proceeds of approximately C$520 million. No additional closings are contemplated under this equity private placement.

Laricina will use the cumulative net proceeds from the private placement financing to further develop its assets, in particular, the continued advancement of the Germain commercial demonstration project (“Germain CDP”) which is currently under construction, advancement of future commercial expansion phases at Saleski and Germain, and for general corporate purposes.

Laricina continues to advance at its Saleski pilot (“Saleski Pilot”) where production is steadily increasing. Planning continues for the second stage which includes combining its solvent-cyclic process with conventional steam-assisted gravity drainage (“SAGD”) technology. Laricina believes that the Saleski Pilot, which has an approved capacity of up to 1,800 barrels per day, is the world’s first SAGD project in the Grosmont carbonate formation, one of Alberta’s largest in situ bitumen resources. Laricina’s regulatory application for the first Saleski commercial expansion phase of 10,700 barrels per day was filed in December 2010.

The Company’s 5,000 barrel-per-day Germain CDP is currently under construction with steam injection expected to commence in late 2012. In the second quarter of 2011 Laricina’s purpose-built slant drilling rig was completed as planned. This rig, which is suitable for drilling well pairs for both the Germain and Saleski projects, is currently deployed in the drilling of the first six well pairs for the Germain CDP. Work for the 3-phase, 150,000-barrel-per-day expansion at Germain beyond the Germain CDP is also underway with the proposed terms of reference, project description and notice of application released in the first quarter of 2011.

Laricina is a non-public, Calgary based, responsible energy company that will contribute supply to the growing demand for crude oil through in situ oil sands development.

Laricina’s goal is to create value by developing Canada’s oil sands using innovative in situ technologies. The Company has a diverse portfolio of oil sands assets at varied stages of development, and experienced people with the requisite technical expertise. Laricina has identified five core areas with commercial production potential in excess of 600,000 gross barrels of bitumen per day from a large concentrated resource base with approximately 4.6 billion barrels net recoverable bitumen as determined by Laricina’s independent reservoir engineers. These assets include oil sands resources in the familiar McMurray Formation, the developing Grand Rapids and the Grosmont and Winterburn carbonate plays, all of which offer significant production potential.

Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of such statements under applicable securities law including the expected closing of the equity private placement and the use of proceeds from the private placement. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “estimate”, “intend”, “believe”, “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on Laricina’s experience and current beliefs as well as assumptions made by, and information currently available to, Laricina, and are subject to a variety of risks and uncertainties including, but not limited to, those associated with resource definition, unanticipated costs and expenses, regulatory approvals, fluctuating oil and gas prices, and the ability to access sufficient capital to finance future acquisitions and development. Although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the assumptions and factors discussed in this information release are not exhaustive and readers are not to place undue reliance on forward-looking statements. Laricina disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, subsequent to the date of this message, except as required under applicable securities legislation. The forward-looking statements are expressly qualified by these cautionary statements.

Securities Law Notice
Laricina’s common shares are not traded on any stock exchange in Canada and thus are not subject to regulation by any Canadian stock exchange. Laricina’s securities have not been and will not be 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 registration requirements of such Act. As a result, Laricina is not presently subject to the reporting, certification or other requirements imposed on U.S. registered issuers under, among other things, U.S. Sarbanes-Oxley Act of 2002.

This release is provided for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common shares in any jurisdiction (including the United States) in which such offer, solicitation or sale would be unlawful.

Where Energy
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Laricina is advancing in situ technology and innovation, through its forward thinking approach and practices. Our ideas begin with people whose knowledge is based on years of in situ experience, redefining and shaping several of the processes we are implementing today.

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