2014

Xinergy Ltd. receives new US $20 million financing commitment

Toronto Stock Exchange: XRG

KNOXVILLE, TN, Oct. 29, 2012 /PRNewswire/ - Xinergy Ltd., (TSX:XRG) ("Xinergy" or the "Company"), a Central Appalachian coal producer, announced today that it has secured a US $20 million financing commitment from affiliates of Bayside Capital Inc. ("Bayside") on behalf of various funds under its management ("Lenders"), replacing a commitment previously obtained by the Company on July 27, 2012. The financing commitment contemplates a US $20 million first lien senior secured term loan facility that the Company can draw in two tranches of $10 million each, bearing interest at a rate of 9.875% per annum and having a four year term.

In consideration for the financing commitment, Xinergy has agreed to issue to the Lenders five hundred thousand common share purchase warrants with a five year term and a strike price of CDN $1.20 per share.  Upon closing of the first $10 million term loan, the Company would issue to the Lenders an additional 450,000 common share purchase warrants with a five year term and a strike price equal to $1.40 per share, and upon closing of the second $10 million term loan, the Company would issue to the Lenders an additional 350,000 common share purchase warrants with a five year term and a strike price equal to $1.60 per share.

The Bayside financing commitment expires on December 31, 2012, and provides for the issuance of the second $10 million tranche up to one year following issuance of the first $10 million tranche.

Matt Goldfarb, Xinergy's CEO, commented: "We are pleased to have secured new committed senior secured financing that we expect will provide significantly increased flexibility and lower effective carrying costs relative to our prior committed senior secured financing."

Moelis & Company acted as capital markets advisor to Xinergy in connection with the financing.  Closing of the financing is subject to customary closing conditions, and issuance of the warrants is subject to Toronto Stock Exchange approval.

About Xinergy Ltd.

Headquartered in Knoxville, Tennessee, Xinergy Ltd., through its wholly owned subsidiary Xinergy Corp. and its subsidiaries, is engaged in coal mining in eastern Kentucky, West Virginia and Virginia. Xinergy sells high quality thermal and metallurgical coal to electric utilities, steelmakers, energy trading firms and industrial companies. For more information, please visit www.xinergycorp.com.

Forward-Looking Information

This release contains "forward-looking information" relating to secured term loan facility and issuance of the warrants. Forward-looking information should not be read as a guarantee of future performance and will not necessarily be accurate indications of the times at, or by which, that performance will be achieved. There are several risks that could cause actual performance to differ materially from those expressed in or suggested by the forward-looking information which are more fully described in Xinergy Ltd.'s filings with the Canadian Securities Administrators, including its Annual Information Form for the year ended December 31, 2011, available on SEDAR at www.sedar.com. You should not put undue reliance on any forward-looking information. We assume no obligation to update forward-looking information, except to the extent required by applicable securities laws.

SOURCE Xinergy Ltd.




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