Palo Duro Updates on Acquisition of CarbonOne Technologies Inc.

March 30, 2015 7:30 PM EDT | Source: TekModo Industries Inc.

Vancouver, British Columbia--(Newsfile Corp. - March 30, 2015) - Further to the news release dated October 17, 2014, Palo Duro Energy Inc. (TSXV: PDE.H) ("Palo Duro") is continuing to work closely with CarbonOne Technologies Inc. ("CarbonOne") to complete the acquisition of all of the issued and outstanding shares of CarbonOne (the "Transaction"). The filing statement and applicable financial statements have been prepared in draft and will be filed with the TSX Venture Exchange after they have been reviewed and finalized by Palo Duro and its sponsor.

Loan

Palo Duro has advanced an additional $250,000 to CarbonOne which, along with the previously advanced $500,000, is non-interest bearing and secured pursuant to a general security agreement. CarbonOne proposes to use the proceeds of the additional loan for purchasing manufacturing equipment and product testing, with the remainder of the proceeds to be used for working capital and general corporate purposes. If the Transaction does not close by June 28, 2015, this additional loan will be repayable by CarbonOne within 60 days of demand by Palo Duro.

Share Exchange Agreement

Palo Duro and CarbonOne have amended the Share Exchange Agreement to extend the date by which the Transaction must close to June 28, 2015.

PALO DURO ENERGY INC.

Per:        "Kurt Bordian"      
  
              President and CEO

For further information about Palo Duro please contact:
Investor Relations: 778-373-3740

Email: info@paloduro.ca

Completion of the transaction is subject to a number of conditions, including Exchange acceptance and Shareholder approval. The transaction cannot close until the required Shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Filing Statement to be prepared in connection with the transaction, any information released or received with respect to the RTO may not be accurate or complete and should not be relied upon. Trading in the securities of Palo Duro should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

This release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of any of the words "will", "continuing to", "proposes" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. Palo Duro believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. In particular, this release contains forward-looking statements and assumptions pertaining to the Transaction, the filing statement and financial statements, Sidecar Financing and the loan. These statements speak only as of the date of this release and Palo Duro does not undertake to update any forward-looking statements that are contained in this release, except in accordance with applicable securities laws.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

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