Item 7.01. Regulation FD Disclosure

    On June 21, 2011, Daybreak Oil and Gas, Inc. (the “Company”) issued a press release announcing that it has received a commitment for a $3,500,000 secured loan (the “Loan”). Subject to definitive documentation, due diligence and customary closing conditions, the Loan is expected to close on or before June 30, 2011. Proceeds of the Loan will be used to expand the development of the Company’s East Slopes Project located in Kern County, California and other general corporate purposes. A copy of the press release is furnished as Exhibit 99.1. In accordance with General Instruction B.2 of Form 8-K, the information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Forward-Looking Statements

    Except for the historical information set forth in this document, the matters discussed in this document are forward-looking statements that involve certain assumptions and known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially. The words “will,” “expected” and similar expressions are intended to identify forward-looking statements. The Company’s expectations with regard to receiving the Loan as well as financing and organizational matters and plans are subject to various factors and conditions. These forward-looking statements are also affected by the risk factors described in the Company’s Annual Report on Form 10-K for the year ended February 28, 2011 and those set forth from time to time in other filings with the Securities and Exchange Commission (the “SEC”). The documents are available through the Company’s website at www.daybreakoilandgas.com or through the SEC’s Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statement.

Item 9.01. Financial Statements and Exhibits