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Candax Reports Update on Deep Triassic Prospect, Debt Rescheduling

TORONTO, ONTARIO -- (Marketwire) -- 01/28/13 -- Candax Energy (TSX:CAX) announces that its initial geosciences study on its deep Triassic play in the south of the Gulf of Gabes in Tunisia is complete.

Based on the currently available data and given the range of uncertainties, especially regarding the depth of the reservoir top, the geosciences team has come to the conclusion that this play lacks sufficient evidence to recommend drilling a test well.

A limited amount of work remains to be completed in the coming months in order to integrate all available geological data, especially regarding source rock and reservoir facies evolution.

Benoit Debray, Chairman and CEO stated, "We are still faced with uncertainties and cannot currently confirm the commercial viability of the deep Triassic project. However, we are committed to explore all options to better understand the play. We are also encouraged by the implications of the study as it pertains to the further development of the upper zones evaluated by the study."

In addition, Candax announces that it has rescheduled $2.7 million of principal repayment from its shareholder loan due February 1st, to be amortized in 5 equal payments over the next 5 years.

Pierre-Henri Boutant, CFO stated, "We are pleased to have been able to reschedule the principal payment as it gives us the flexibility to continue to make important investments in our Tunisian operations. We are grateful that our major shareholder and provider of the loan, Geofinance, shares our vision to continue to prioritize these types of investments."

About Candax

Candax is an international energy company with offices in Toronto and Tunis. The Candax group is engaged in exploration and the production of oil and gas in Tunisia and holds an interest in an exploration permit in Madagascar.

Contacts:
Candax Energy Inc.
John Younger
President
416 368 9137 ext. 136
jyounger@candax.com

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