EnCap enters into bridge loan and acquires common shares of GFI Oil & Gas Co

Pursuant to the terms of the Bridge Loan, the EnCap Group may, subject tocertain conditions, including GFI failing to repay the full amount of theBridge Loan within certain time frames, receive an aggregate of up to7,500,000 common share purchase warrants (the "Warrants").

Each Warrant, if issued, would entitle the members of the EnCap Group topurchase one common share of GFI (the "Common Shares") for a period of twoyears from the date of issuance at a price equal to the 10-day volume-weightedaverage closing price of the Common Shares on the TSX Venture Exchange ascalculated at the date of issuance of the Warrants.

If all of the Warrants were issued and exercised, the EnCap Group wouldacquire 7,500,000 Common Shares, which would constitute approximately 4.49% ofGFI's currently outstanding Common Shares.

In connection with the commitment fee payable pursuant to the BridgeLoan, the EnCap Group acquired ownership, from treasury, of an aggregate of265,435 Common Shares (approximately 0.16% of GFI's outstanding CommonShares). EnCap V acquired 64,529 Common Shares, EnCap V-B acquired ownershipof 51,089 Common Shares, EnCap VI acquired 96,820 Common Shares and EnCap VI-Bacquired 52,997 Common Shares. EnCap Investments L.P. is the manager of EnCapV, EnCap V-B, EnCap VI and EnCap VI-B.

This acquisition was made for investment purposes and in the future eachof the members of the EnCap Group may acquire or dispose of Common Shares fromtime to time.

For further information

Please contact Brent Bechtol (713) 659-6100 toobtain a copy of the report filed by the EnCap Group pursuant to theSecurities Acts of British Columbia and Alberta.