Parkland Fuel Corporation Completes $86 Million Bought Deal Equity Financing

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RED DEER, AB, June 2, 2011 /CNW/ - Parkland Fuel Corporation ("Parkland" or the "Corporation") (TSX: PKI), Canada's largest independent fuel distributer and marketer, today closed the bought deal equity financing that was announced on May 12, 2011. Including the over-allotment option that was fully exercised by the syndicate of underwriters, the financing raised approximately $86 million in gross proceeds. All financial figures referred to in this news release are in Canadian dollars.

The syndicate of underwriters, led by RBC Capital Markets and Scotia Capital Inc. and including CIBC World Markets Inc., TD Securities Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc., Canaccord Genuity Corp., and PI Financial Corp. (collectively the "Underwriters"), purchased for resale to the public on a bought deal basis 7,130,000 common shares in the capital of Parkland (the "Common Shares"), at a price of $12.10 per Common Share (the "Offering").

"In addition to funding the acquisitions we recently announced, this financing strengthens Parkland's balance sheet and positions us for continued growth," said Bob Espey, President and CEO of Parkland Fuel Corporation.

Parkland intends to use the net proceeds of the Offering: (i) to directly or indirectly finance the recently announced acquisition of the business of Cango Inc. and the purchase of seven retail fuel outlets from Overwaitea Food Group (collectively the "Acquisitions"); and (ii) to repay a portion of outstanding indebtedness.

The Acquisitions, which remain subject to certain closing conditions, represent annualized retail fuel volumes in excess of 425 million litres. The aggregate cost of the Acquisitions is approximately $22 million.

The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration under, or an applicable exemption from the registration requirements of, the U.S. Securities Act. This press release does not constitute an offer to sell or a solicitation of any offer to buy the Common Shares in the United States.

Cautionary Statement Regarding Forward-Looking Information and Statements

Certain statements included herein that contain words such as "believe", "expects", "expected", "will", "intends", "projects", "projected", "anticipates", "estimates", "continues", and similar expressions and statements that are not related to historical facts constitute forward-looking information or statements under securities laws. In particular, the forward-looking information and statements herein include, but are not limited to, statements regarding the anticipated use of the net proceeds of the Offering, the completion of the Acquisitions and the growth of Parkland's business and operations. Parkland believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties some of which are described in Parkland's annual report, annual information form and other continuous disclosure documents. Such forward-looking statements necessarily involve known and unknown risks and uncertainties and other factors, which may cause Parkland's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the satisfaction or waiver of the closing conditions relating to the Acquisitions; general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities including increases in taxes; changes in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. Any forward-looking statements are made as of the date hereof and Parkland does not undertake any obligation, except as required under applicable law, to publicly update or revise such statements to reflect new information, subsequent or otherwise.

About Parkland Fuel Corporation

Parkland Fuel Corporation ("Parkland") is Canada's largest independent marketer and distributer of fuels, managing a nationwide network of sales channels for retail, commercial, wholesale and home heating fuel customers. Parkland's mission is to be the most trusted source of convenience for fuel and related products focused on non-urban markets. Our family of brands includes: Fas Gas Plus, Race Trac Gas, Bluewave Energy, Columbia Fuels, Great Northern Oil, Neufeld Petroleum & Propane, United Petroleum Products and Island Petroleum. We are Canada's local fuel company, delivering competitive fuel products and serving Canadian communities through local operators who care. For more information please visit

Parkland shares and convertible debentures trade on the Toronto Stock Exchange (TSX) under the symbols PKI, PKI.DB and PKI.DB.A.

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