Magnolia Colombia announces $1.5M private placement

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES

MAGNOLIA ANNOUNCES PRIVATE PLACEMENT FINANCING

November 6, 2017 Toronto, Ontario – Magnolia Colombia Limited. (“Magnolia” or the “Company”) (TSXV: MCO) is pleased to announce a non-brokered private placement financing of up to 15,000,000 units of Magnolia (the “Units”) at a price of $0.10 per Unit for gross proceeds of up to $1,500,000 (the “Offering”). Each Unit shall be comprised of one common share of Magnolia (each a “Common Share”) and one common share purchase warrant (each a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.15 for a period of 24 months following the closing date of the Offering. If at any time after four months and one day from the closing of the Offering, the Common Shares of the Company trade at $0.25 per Common Share or higher (on a volume weighted adjusted basis) for a period of 15 consecutive trading days, the Company will have the right to accelerate the expiry date of the Warrants to the date that is 30 days after the Company issues a news release announcing that it has elected to exercise this acceleration right.

The proceeds of the Offering will be used for general corporate purposes and to pursue new opportunities. The closing date of the Offering is expected to occur on or about November 30, 2017. All securities issued by Magnolia will be subject to a statutory hold period of four months and one day. Completion of the Offering is subject to a number of conditions, including TSX Venture Exchange approval.

In connection with the Offering, Magnolia may pay finder’s fees in accordance with the policies of the TSX Venture Exchange.

About Magnolia Colombia Limited:

Magnolia Colombia Limited is a Canadian independent oil exploration company.

For further information, please contact:
Jaime Lalinde, President & CEO
Email: jlalinde@fmresources.ca