Return Energy Inc.

Closed an initial tranche of its non-brokered private placement comprised of common share units and Canadian exploration expense flow-through shares (CEE FTS). Under this tranche, Return issued about 16.7 million units priced at 12 cents each for about C$2 million gross proceeds, and also issued 715,000 CEE FTS priced at 14 cents each for C$100,000 gross proceeds. Units consisted of one common share and one share purchase warrant. CEE FTS were issued pursuant to the Income Tax Act (Canada) in respect of Canadian exploration expenses. Proceeds from this offer will support development activities in Rycroft, Gordondale, Valhalla areas of Alberta . Non-brokered private placement remains open and Return may close additional tranches under this offering. Completion of the offering is subject to TSX Venture Exchange final approval.