EMERALD BAY ANNOUNCES LOAN EXTENSION

Oct 02 2014

EMERALD BAY ANNOUNCES LOAN EXTENSION

Calgary, Alberta, October 2, 2014 – Emerald Bay Energy Inc. (TSX Venture: EBY) (the “Corporation” or “Emerald Bay”) reports that it has entered into a loan extension agreement (the “Loan”) with an arm's length lender (the “Lender”) in the principal amount of $1,200,000 (the “Loan”). The Loan has been entered into on the same terms as the previous loan agreement, which expired on August 15, 2014. The Loan will bear interest at a rate of 10% per annum, compounded monthly, with a term ending August 15, 2015, subject to standard prepayment and conversion clauses (principal amount is convertible, at the option of the lender, into common shares of the Corporation at a price per share equal to $0.05).

In addition to industry standard security, the Loan is secured by a promissory note and security over the oil and gas assets of the Corporation. The Common Shares issuable upon exercise of the conversion of the Loan will be subject to a 4-month hold period. The Loan is subject to the acceptance of the TSX Venture Exchange.