TEI Toscana Energy Income Corporation

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY UNITED
STATES NEWS SERVICES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE
A VIOLATION OF U.S. SECURITIES LAW. 


Toscana Energy Income Corporation ("Toscana Energy" or the "Company") (TSX
VENTURE:TEI) is pleased to announce that it has entered into an agreement with a
syndicate of underwriters (the "Underwriters") led by National Bank Financial
Inc. and including GMP Securities LP, Macquarie Capital Markets (Canada) Ltd.
and Sprott Private Wealth LP, pursuant to which the Underwriters have agreed to
purchase, on a bought deal basis for resale, $15,000,000 of aggregate principal
amount of 6.75% Convertible Unsecured Subordinated Debentures (the "Convertible
Debentures") due June 30, 2018 (the "Bought-Deal Offering"). The Company has
also granted the Underwriters an option (the "Over-Allotment Option"),
exercisable in whole or in part for a period of 30 days following the closing of
the Bought-Deal Offering, pursuant to which the Underwriters may purchase up to
an additional $2,250,000 principal amount of Convertible Debentures, on
substantially the same terms as the Bought-Deal Offering.  


The Company is also pleased to announce that it has agreed to a concurrent
private placement of $5,000,000 of aggregate principal amount of Convertible
Debentures to affiliates or designees of Sprott Inc. on the substantially the
same terms as the Bought-Deal Offering (the "Private Placement Offering").  


If the Over-Allotment Option is exercised in full, the gross proceeds from the
Bought-Deal Offering and the Private Placement Offering will be $22,250,000. 


The Convertible Debentures will bear interest from the date of issue at a rate
of 6.75% per annum, payable semi-annually in arrears on June 30 and December 31
of each year commencing December 31, 2013. The Convertible Debentures will have
a maturity date of June 30, 2018 (the "Maturity Date") and will be convertible
at the holder's option into common shares ("Common Shares") of the Company at a
conversion price of $19.70 per Common Share (the "Conversion Price"), subject to
adjustment in certain events. The Convertible Debentures will not be redeemable
on or before June 30, 2016. After June 30, 2016 and prior to June 30, 2017, the
Convertible Debentures will be redeemable at the Company's option, in whole or
in part, at par plus accrued unpaid interest if the weighted average trading
price of the Common Shares for the specified period exceeds 125% of the
Conversion Price. On and after June 30, 2017, the Convertible Debentures will be
redeemable at the Company's option, in whole or in part, at any time at par plus
accrued and unpaid interest. 


Toscana Energy will file a preliminary short form prospectus relating to the
issuance of the Convertible Debentures pursuant to the Bought-Deal Offering with
securities commissions in each of the provinces of Canada other than Quebec.
Both the Bought-Deal Offering and the Private Placement Offering are scheduled
to close on or about June 11, 2013 (the "Closing Date") and such closings are
subject to certain conditions including, but not limited to, the receipt of all
necessary approvals, including the approval of the TSX Venture Exchange. 


Proceeds from the Bought-Deal Offering and the Private Placement Offering will
be used for general corporate purposes and to reduce the amounts owing under the
Company's credit facility.


About Toscana Energy Income Corporation 

Toscana Energy is a conventional oil and gas producer with the mandate to
acquire high quality, long life oil and gas assets including royalties,
non-operated working interests and unitized production for yield and capital
appreciation. Toscana Energy is managed by Sprott Toscana through Toscana Energy
Corporation. Sprott Toscana is a member of the Sprott Group of Companies. 


About Sprott Toscana 

Sprott Toscana (formerly Toscana Merchant Group) is a team of Calgary-based
energy specialists that manage three separate businesses: Toscana Energy
(through Toscana Energy Corporation), Toscana Financial Income Trust and Maple
Leaf Energy Income LPs. In July 2012, Toscana Merchant Group joined the Sprott
Group of Companies when it was acquired by Sprott Inc. (TSX:SII), Canada's
leading alternative asset manager and a global leader in resource investing. 


FORWARD-LOOKING STATEMENTS 

This press release contains forward-looking statements. All statements other
than statements of historical fact may be forward-looking statements. Such
statements are generally identified by the use of words such as "anticipate",
"continue", "estimate", "expect", "forecast", "may", "will", "project",
"should", "plan", "intend", "believe" and similar expressions (including the
negatives thereof). In particular, this press release contains forward-looking
statements pertaining to the following: the use of proceeds of the Bought-Deal
Offering and the Private Placement Offering and the anticipated closing date of
the Bought-Deal Offering and the Private Placement Offering. 


By their nature, forward-looking statements are subject to numerous risks and
uncertainties, some of which are beyond Toscana Energy's control, including that
the closing of the Bought-Deal Offering or the Private Placement Offering could
be delayed or such offerings may not close at all if the required approvals are
not obtained on a timely basis or some other condition to such offerings is not
satisfied and those risks and uncertainties relating to results of operations
and financial condition, general economic conditions, industry conditions,
changes in regulatory and taxation regimes, volatility of commodity prices,
escalation of operating and capital costs, currency fluctuations, the
availability of services, imprecision of reserve estimates, geological,
technical, drilling and processing problems, environmental risks, weather, the
lack of availability of qualified personnel or management, stock market
volatility, the ability to access sufficient capital from internal and external
sources and competition from other industry participants for, among other
things, capital, services, acquisitions of reserves, undeveloped lands and
skilled personnel. Risks are described in more detail in the Company's Annual
Information Form, which is available at www.sedar.com. 


The reader is cautioned that the assumptions (including among other things, the
anticipated receipt of regulatory and other approvals and the satisfaction of
other closing conditions to the above-referenced offerings on the timing
contemplated, future oil and natural gas prices; future capital expenditure
levels; future production levels; future exchange rates; the cost of developing
and expanding the Company's assets; the Company's ability to obtain equipment in
a timely manner to carry out development activities; the Company's ability to
market the Company's oil and natural gas successfully to current and new
customers; the impact of increasing competition, the Company's ability to obtain
financing on acceptable terms; and the Company's ability to add production and
reserves through the Company's development and acquisition activities) used in
the preparation of such information, although considered reasonable at the time
of preparation, may prove to be imprecise and, as such, undue reliance should
not be placed on forward-looking statements. Actual results, performance, or
achievement could differ materially from those expressed in, or implied by,
these forward-looking statements. Toscana Energy can give no assurance that any
of the events anticipated will transpire or occur, or if any of them do, what
benefits will be derived from them. The forward-looking information contained in
this document is expressly qualified by this cautionary statement. Toscana
Energy disclaims, except as required by law, any intention or obligation to
update or revise any forward looking statements, whether as a result of new
information, future events or otherwise.


This news release shall not constitute an offer to sell or the solicitation of
an offer to buy any securities nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful. The
securities issued pursuant to the financings described herein have not been and
will not be registered under the United States Securities Act of 1933 and may
not be offered or sold in the United States except in transactions exempt from
such registration.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Joseph S. Durante
Chief Executive Officer
(403) 410-6793
(403) 444-0090 (FAX)
jdurante@toscanacapital.com

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