Azabache Energy Inc. ("Azabache" or the "Company") (TSX VENTURE:AZA) announces that it intends to proceed with a non-brokered private placement (the "Private Placement") of a minimum of 31,250,000 common shares in the capital of the Company (the "Common Shares") at a price of $0.16 per Common Share for minimum gross proceeds of $5,000,000 and a maximum of 62,500,000 Common Shares for maximum gross proceeds of up to $10,000,000.

Closing of the Private Placement is expected to occur on or about March 21, 2013 or such other date as the Company may determine, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange (the "Exchange"). The Common Shares issued pursuant to the Private Placement will be subject to resale restrictions imposed by applicable securities laws and the policies of the Exchange.

The Company intends to use the proceeds from the Private Placement to complete fracture stimulation and work over of the Company's COVx-2 well in the Vaca Muerta formation as well as for general working capital and general corporate purposes.

In connection with the Private Placement, the Company may pay eligible persons a finder's fee of up to 6% of that portion of the proceeds of the Private Placement that result from such parties efforts, subject to compliance with applicable securities laws.

The Company is also pleased to announce the appointment of Mr. Marcelo Etchebarne as director of the Company. Mr. Etchebarne is a senior partner in the Corporate Finance Group at Cabanellas Etchebarne Kelly, a law firm based in Buenos Aires. In 2003 he was ranked as one of the top 40 lawyers under 40 in Argentina by the Latin Lawyer Survey. Mr. Etchebarne is counsel to large local and international companies doing business in the energy sector in Argentina. He also brings significant experience in international debt and equity securities offerings to the board. Mr. Etchebarne graduated as a lawyer from Argentine Catholic University Law School, obtained an LL.M. from Harvard Law School, and was admitted to the Argentine bar in 1994 and the New York State bar in 1997.

The Company also announces the resignation of Mr. Vincent Chahley as a director of the Company effective March 11, 2013. The Company would like to thank Mr. Chahley for his contribution to Azabache and wishes him success in his future endeavors.

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated timing for the closing of the Private Placement and the expected use of proceeds of the Private Placement. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Azabache, including with respect to the anticipated timing for closing the Private Placement and the expected use of proceeds of the Private Placement. Although Azabache 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 Azabache 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, risks associated with the oil and 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. The forward-looking statements contained in this document are made as of the date hereof and Azabache 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.

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. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Azabache Announces Non-Brokered Private Placement and Appointment of New Director

Azabache Announces Non-Brokered Private Placement and Appointment of New Director