TORONTO, ONTARIO--(Marketwire - March 2, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Candax Energy Inc. ("Candax") (TSX:CAX) is pleased to confirm that credit approval has been received from the Bank of Scotland to the terms of a substantial restructuring of the US$45 million loan facility subject to completion of documentation and closing of the previously announced investment agreement with Geofinance NV. In the meantime, the waiver has been extended to March 15, 2010. The investment transaction announced on February 1, 2010 is proceeding on schedule subject to receipt by Candax of the required number of shareholder consent forms (as discussed below). Further details on the credit approval will be provided upon closure of the facility amendment and investment agreements in due course.

Geofinance N.V. Investment

The Company wishes to advise shareholders who have not voted in favour of the investment by Geofinance N.V. in securities of the Company as outlined in Candax's press release of February 1, 2010 (the "Transaction"), by returning an executed shareholder consent form with respect thereto, to please contact Candax's Information Officer for the Transaction, Laurel Hill Advisory Services at 1 877 304 0211 or collect 416 637 4614 or assistance@laurelhillag.com to discuss the Form of Consent. The Transaction has the unanimous support of the board of directors of Candax, Actis LLP and management of Candax, who collectively own approximately 42% of the outstanding common shares of Candax. In order to obtain the approval of the Toronto Stock Exchange for the Transaction, the Company must receive executed consent forms from shareholders which collectively hold at least 50% of the number of outstanding common shares of Candax. The Company encourages shareholders to vote their shares in favour of the Transaction.

Candax Energy Inc. is an international energy company with its head office in Toronto and offices in London, Tunis, and Madagascar. The Candax group is engaged in exploration and the production of oil and gas and power generation in Tunisia and holds an interest in an exploration permit in Madagascar.

This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of Management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, the risk that the conditions precedent (some of which are beyond the control of the parties) for completion of the transaction with Geofinance will not be satisfied or waived, risks associated with the oil and gas industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Candax Energy Inc. to obtain all permits, consents or authorizations required for its operations and activities; and health safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Candax Energy Inc. to fund the capital and operating expenses necessary to achieve the business objectives of Candax Energy Inc., the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Candax Energy Inc. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Candax Energy Inc. should not place undue reliance on these forward-looking statements. Statements in relation to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Candax Energy Inc.Charlotte May
        Corporate Secretary
        416 364 3353
        cmay@candax.com

        CHF Investor Relations
        Jeanny So
        Account Manager
        416 868 1079 ext. 225
        jeanny@chfir.com

Source: Candax Energy Inc.