Return Energy Inc. announced that it has entered into a definitive reorganization and investment agreement (the "Agreement") with Fotis Kalantzis and Richard F. McHardy (the "Initial Investors") which provides for: a non-brokered private placement for gross proceeds of up to $25.0 million (the "Private Placement"); and the appointment of a new management team (the "New Management Team") and new board of directors (the "New Board") of Return (collectively, the "Transaction"). The New Management Team will be led by Richard F. McHardy as Executive Chairman and Fotis Kalantzis as President and Chief Executive Officer, Geri Greenall as Chief Financial Officer, Thanos Natras as Vice President, Exploration, Craig Martin as Vice President, Operations, Mark Hodgson as Vice President, Corporate Development, Brendan Paton as Manager, Engineering and Ashley Hohm as Controller. The New Board will be comprised of Richard F. McHardy, Fotis Kalantzis, Don Archibald, Reginald Greenslade, Kevin Overstrom and Tamara MacDonald.

Sanjib (Sony) Gill, a partner in the Calgary office of the national law firm Stikeman Elliott LLP, will act as Corporate Secretary. The resignation of the current board of directors and management team of Return and the appointment of the New Management Team and New Board will occur contemporaneous with the Closing.