EMERALD BAY ANNOUNCES REVISED PRIVATE PLACEMENT

Mar 17 2011

For Immediate Release:  March 17, 2011

EMERALD BAY ANNOUNCES REVISED PRIVATE PLACEMENT

Calgary, Alberta, March 17, 2011 – Emerald Bay Energy Inc.  (TSX Venture: EBY) (the "Corporation") today reported that the Corporation is proposing a revised non-brokered private placement offering of up to maximum of 20,000,000 common shares ("Common Shares") of the Corporation.  The Common Shares are to be issued under a unit offering whereby up to a maximum of 20,000,000 units ("Units") at a subscription price of $0.05 per Unit are to be offered.  Each Unit shall consist of one (1) Common Share of the Corporation (to be issued either as a Common Share or as a "flow-through share" pursuant to the Income Tax Act (Canada) (the "Flow-Through Share") at the subscribers option) and one (1) share purchase warrant (the "Warrant") (each full Warrant shall entitle the holder thereof to purchase one (1) additional common share of the Corporation for a period of 18 months from the issuance of the Units at a price of $0.10) (the "Offering").  Pursuant to press release on March 4, 2011, the Corporation had previously proposed to that the Warrants have an exercise price of $0.12 and an expiry period of 12 months.  This proposed offering will supersede and replace the prior announced offering.

The proceeds will be used for drilling wells, seismic activities and increasing working capital.  

All of the Flow-Through Shares, Common Shares and Warrants issued pursuant to the private placement are subject to a 4-month hold period. Completion of the private placement is subject to the final approval of the TSX Venture Exchange.

ABOUT EMERALD BAY

Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas producer with production properties in Western Canada and South Texas.  The common shares of Emerald Bay trade on the TSX Venture Exchange under the symbol "EBY".  Please visit http://www.emeraldbayenergy.com.

For further information, please contact:

Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000 or by email at info@ebyinc.com

or

CHF Investor Relations: Robin Cook, Senior Account Manager, (416) 868-1079 x228,  robin@chfir.com. If you would like to receive press releases via email please contact lauren@chfir.com. Please specify “Emerald Bay press releases” in the subject line.

Neither 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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