Further to the press release dated July 4, 2012 by Anglo Canadian Oil Corp. (TSX VENTURE:ACG) and Tallgrass Energy Corp., regarding the strategic business combination of Anglo and Tallgrass and the acquisition of certain producing Cardium light oil assets by Tallgrass, Tallgrass is pleased to announce that it has entered into an agreement with a syndicate of agents led by PI Financial Corp. and including Casimir Capital Ltd. and Salman Partners Inc., with Macquarie Private Wealth Inc. as a special selling group member, for an offering of up to 33,333,334 subscription receipts of Tallgrass on a reasonable commercial best efforts private placement basis pursuant to applicable private placement exemptions under applicable securities laws. The Subscription Receipts will be offered at a price of $0.60 per Subscription Receipt for aggregate gross proceeds of up to approximately $20,000,000.

Each Subscription Receipt will entitle the holder thereof, without payment of any additional consideration and without further action on the part of the holder, to receive one unit of the Company, upon meeting certain terms and conditions described below. Each Unit shall consist of one common share and one half of one transferable common share purchase warrant. Each Warrant shall be exercisable into one additional common share of the Company for 18 months from closing at an exercise price of $0.75 per Common Share.

As outlined in the July 4th Press Release, Tallgrass has entered into a purchase and sale agreement with a public Canadian oil and gas exploration and production company to acquire certain producing Cardium light oil assets in the Bigoray and Niton areas of Alberta for cash consideration of $17.0 million. These properties are currently producing 450 boepd (73% oil and NGLs) with total proved and probable reserves of approximately 2.1 mmboe based on an independent engineering report prepared by GLJ Petroleum Consultants dated March 27, 2012 and effective December 31, 2011. Also included in the purchase are 10.25 sections of undeveloped Cardium rights which represent 40 potential drilling locations. After giving effect to this Asset Acquisition, Tallgrass would have aggregate production of approximately 610 boepd (73% oil). The Asset Acquisition is no longer subject to the approval of the Vendor's primary lender under its credit facility.

The net proceeds received by the Company from the sale of the Subscription Receipts will be applied to the Asset Acquisition, to reactivate certain wells, partially fund the drilling of one or two horizontal wells targeting the Cardium formation at Niton, and for general corporate purposes.