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Press release from Marketwire

Crocotta Energy Inc. Announces Closing of Bought Deal Financing

Wednesday, February 23, 2011

Crocotta Energy Inc. Announces Closing of Bought Deal Financing09:25 EST Wednesday, February 23, 2011CALGARY, ALBERTA--(Marketwire - Feb. 23, 2011) -CROCOTTA ENERGY INC. (TSX:CTA) ("Crocotta") is pleased to announce that it has closed its previously announced public offering (the "Offering") of common shares ("Common Shares") in the capital of Crocotta by way of short form prospectus. An aggregate of 15,635,000 Common Shares, including full exercise of the over-allotment option, were issued on a bought deal basis at a price of $2.30 per Common Share for gross proceeds of $35,960,500.The Offering was co-led by GMP Securities L.P. and Canaccord Genuity Corp. and included Acumen Capital Finance Partners Limited, Cormark Securities Inc., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., National Bank Financial Inc. and Casimir Capital Ltd.The net proceeds of the Offering will be used to fund Crocotta's Edson Bluesky and Dawson Montney developments and other projects and for general corporate purposes.All Common Shares issued pursuant to the Offering are freely tradable under applicable securities laws in force in Canada. Subsequent to the closing of the Offering, Crocotta has 80,776,878 Common Shares issued and outstanding.The securities offered under the Offering have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press 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.FORWARD LOOKING STATEMENTSThis press release contains forward-looking statements. More particularly, this press release contains statements concerning Crocotta's potential exploration and development opportunities and the anticipated use of proceeds of the Offering.The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Crocotta, including, without limitation, expectations and assumptions concerning the success of future drilling and development activities.Although Crocotta believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Crocotta can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing the financing, risks associated with the oil and natural gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations changes to existing laws and regulations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Certain of these risks are set out in more detail in Crocotta's Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com. The forward-looking statements contained in this document are made as of the date hereof and Crocotta undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.FOR FURTHER INFORMATION PLEASE CONTACT: Rob ZakreskyCrocotta Energy Inc.President and Chief Executive Officer(403) 538-3736ORNolan ChicoineCrocotta Energy Inc.Vice President, Finance and Chief Financial Officer(403) 538-3738OR700, 639 -5th Ave SWCrocotta Energy Inc.Calgary, Alberta T2P 0M9www.crocotta.caThe Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.