Octagon 88 Resources, Inc. announced that a private placement subscription agreement has been accepted and closed by an established Swiss based fund as the subscriber in the amount of $750,000. The subscriber has agreed to purchase 136,364 units of the company's common stock at a price of $5.50 per unit, each unit consisting of one share of common stock and one share purchase warrant, entitling the holder to purchase one additional share of common stock at an exercise price of $6.50 per share for a period of two years from the date of acceptance of the Subscription. Management is confident that with the proceeds of the subscription funds received on 30.01.2014, that the Company can commence planning the spudding of the first light oil project consisting of four sections in the Red Earth area.

The company signed a farm in agreement with the owner on January 22, 2013. Terms of that agreement were renegotiated in early January 2014 to model the farm in agreement terms to be more representative of a purchase of the negotiated working interest in the leases. Octagon 88 Resources will earns direct working interest of 50% by participating in the drilling costs on the first of 4 planned drill locations.

The JV partners agreed to pay from production a total amount of $2,500,000. - and a 3% residual GORR for 100% working interest which is fully earned after spudding the first well. The other participants are industry companies with similar interests in the Peace River area.

The Red Earth Project consists of 4 contiguous sections of P&NG leases, a (40 API) Keg River formation with P3 reserves of 1.2 Mill bbls light sweet crude oil recoverable, NPV(10%) CAD 20,000,000; the evaluation given is based on the project's last 3D seismic program. Other wells produced in the past have been known to be prolific long term producers. The first of two drill targets currently being surveyed and planned to be spudded for the end of second quarter of 2014.

Initial productions by other producers in the area have shown single wells producing 300 to 500 bbl/d of light sweet crude oil. The extensive long term Keg River developments in the area possess quick net backs on capital with low operating costs.