TORONTO, ONTARIO--(Marketwire - March 16, 2010) -

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

Candax Energy Inc. ("Candax" or "the Corporation") (TSX:CAX) is pleased to provide an update on its business activities to investors.

Equipment is being mobilized for a work program on the El Bibane offshore field to re-connect the production tubing on the EBB-3 well and restart production. The program which is scheduled to start in the second half of March is expected to take approximately two weeks. Additionally, a rig contract between Maretap (the Operator of the onshore Tunisian Ezzaouia oil field) and Ulysse Petroleum has been signed. The rig is being mobilized from the USA and is expected to commence a multi-well side-track and work-over program in the Ezzaouia field in May 2010.

In line with the recently announced update for the transaction with Geofinance N.V., Candax and the Bank of Scotland have agreed a waiver extension to March 18, 2010 which is the date when the transaction is expected to close, unless extended by agreement by both parties.

As previously reported in the interim financial statements, the Corporation had made certain provisions for Tunisian back-taxes based on preliminary findings for the period 2004 through 2007. The initial assessment by the Tunisian tax authorities was Tunisian Dinar (TD) 10.7 million. As a result of additional submissions by the Corporation, the Tunisian tax authorities have issued their final tax assessment for approximately TD 1.5 million (US$1.1 million). Candax has made the payment of this amount as full and final settlement on this matter.

Michael Wood, CEO commented: "Candax is continuing to focus its investment on enhancing production and reserves in Tunisia and it is planned that a more extensive program for El Bibane will be implemented later in the year following the current EBB-3 intervention. Candax is also pleased that the long awaited enhancement program for the Ezzaouia field is moving ahead. The anticipated equity investment by Geofinance along with the Bank loan restructuring and the recent settlement of the tax matters referred to above will significantly enhance the financial strength of the Corporation."

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, risks associated with the fact that there are conditions that still must be satisfied before investment by Geofinance can be completed, risks 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
        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.