DCK Donnycreek Energy

THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES
OF AMERICA TO UNITED STATES NEWSWIRE SERVICES OR UNITED STATES PERSONS


Donnycreek Energy Inc. ("Donnycreek" or the "Company") (TSX VENTURE:DCK) reports
that it has closed its previously announced brokered private placement (the
"Offering") and land acquisition by completing the sale of $29,070,870 of common
shares of the Company ("Common Shares") and the acquisition of approximately
169.5 gross (115.5 net) sections of undeveloped Montney lands in the Deep Basin
area of West Central Alberta (the "Acquisition").


Private Placement

The Offering was made through a syndicate of agents (the "Agents") led by RBC
Capital Markets and including Paradigm Capital Inc. and Cormark Securities Inc.
Pursuant to the Offering, the Company issued 15,665,450 Common Shares at a price
of $1.60 per Common Share for gross proceeds of $25,064,720 and 2,108,500
"flow-through" Common Shares within the meaning of the Income Tax Act (Canada)
("Flow-Through Shares") at a price of $1.90 per Flow-Through Share for gross
proceeds of $4,006,150. The Agents were paid a fee equivalent to 6% of the gross
proceeds of the Offering. The Common Shares issued pursuant to the Offering are
subject to a four month hold period from the date of closing of the Offering. 


The proceeds from the issuance of Flow-Through Shares will be used to incur
eligible Canadian Exploration Expenses (as defined in the Income Tax Act
(Canada)) prior to December 31, 2013 and which will be renounced to subscribers
effective on or before December 31, 2012. Donnycreek will expend the proceeds
from the Offering on drilling the Company's Kakwa block, advancing the Wapiti
assets to be acquired in connection with the Acquisition towards commercial
development and for general corporate purposes. 


Acquisition of Assets

Pursuant to the Acquisition, Donnycreek acquired approximately 115.5 total net
sections (73,968 net acres) of Montney lands from Deventa Land Corp. ("Deventa")
comprised as follows:




--  a 75% working interest in 136.5 gross sections at Wapiti targeting the
    Montney with Donnycreek as operator; and 
--  a 40% working interest in 33 gross sections at Chicken (south of Wapiti)
    targeting the Montney with Donnycreek as operator



The Company now holds interests in approximately 188.5 gross (127 net) sections
(81,008 net acres) of Montney lands. In conjunction with the closing of the
Acquisition, Donnycreek and Deventa have agreed to a joint operating agreement
and areas of mutual of interest.


Donnycreek is a Calgary based oil and natural gas production company focused on
horizontal, multi-stage frac development in the Deep Basin area of west central
Alberta. 


Further information relating to Donnycreek is also available on its website at
www.donnycreekenergy.com.


ON BEHALF OF THE BOARD OF DONNYCREEK ENERGY INC. 

Malcolm F.W. Todd, Chief Executive Officer

FORWARD-LOOKING STATEMENTS 

Certain information set forth in this news release contains forward-looking
statements or information ("forward-looking statements"), including statements
concerning the uses of the net proceeds of the Offering.


The forward-looking statements contained in this document are based on certain
key expectations and assumptions made by Donnycreek, including with respect to
the use of proceeds of the Offering as well as expectations and assumptions
concerning the success of future drilling activities.


By their nature, forward-looking statements are subject to numerous risks and
uncertainties, some of which are beyond Donnycreek's control, including the
impact of general economic conditions, industry conditions, volatility of
commodity prices, currency fluctuations, imprecision of reserve estimates,
environmental risks, operational risks in exploration and development,
competition from other industry participants, the lack of availability of
qualified personnel or management, stock market volatility and the ability to
access sufficient capital from internal and external sources. Although
Donnycreek believes that the expectations in our forward-looking statements are
reasonable, our forward-looking statements have been based on factors and
assumptions concerning future events which may prove to be inaccurate. Those
factors and assumptions are based upon currently available information. Such
statements are subject to known and unknown risks, uncertainties and other
factors that could influence actual results or events and cause actual results
or events to differ materially from those stated, anticipated or implied in the
forward looking information. As such, readers are cautioned not to place undue
reliance on the forward looking information, as no assurance can be provided as
to future results, levels of activity or achievements. The risks, uncertainties,
material assumptions and other factors that could affect actual results are
discussed in our management's discussion and analysis and other documents
available at www.sedar.com. Furthermore, the forward-looking statements
contained in this document are made as of the date of this document and, except
as required by applicable law, Donnycreek does not undertake any obligation to
publicly update or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise. The
forward-looking statements contained in this document are expressly qualified by
this cautionary statement.


This news release is not an offer of securities for sale in the United States.
Securities may not be offered or sold in the United States or to or for the
account or benefit of US persons (as such terms are defined in Regulation S
under the United States Securities Act of 1933, as amended (the "U.S. Securities
Act")), absent registration or an exemption from registration. The securities
offered have not been and will not be registered under the U.S. Securities Act
or any state securities laws and, therefore, may not be offered for sale in the
United States, except in transactions exempt from registration under the U.S.
Securities Act and applicable state securities laws. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the securities in any State in which such offer,
solicitation or sale would be unlawful.

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