Vanoil Energy Ltd. (TSXV:VEL) announced a non-brokered private placement of up to 8,333,333 units at a price of CAD 0.60 per unit for gross proceeds of CAD 5,000,000 on December 11, 2012. Each unit consists of one common share and one non-transferable warrant. Each warrant entitles the holder to purchase one common share at a price of CAD 1 per share for a period of 24 months from the closing date.

The warrant will be subject to accelerated expiry if at any time after the date that is four months and one day after the closing, the common shares trade on the exchange at a price of CAD 1.50 or more for the preceding 20 consecutive trading days. The nine placees will purchase 7,437,060 units including 1091096 Ontario Inc, an investment vehilce owned by an individual, which will purchase 166,667 units and James Passin who will purchase 491,373 units. The securities issued are subject to a four month hold period from the closing date.

The company may pay finder's fees in connection with the private placement.