Fareport Capital Inc.

Fareport Capital Inc.

January 12, 2007 17:00 ET

Fareport Capital Inc.-Update

TORONTO, ONTARIO--(CCNMatthews - Jan. 12, 2007) - Fareport Capital Inc. (TSX VENTURE:CAB) -

Fareport Capital Inc. ("Fareport" or the "Company") wishes to provide an update with regards to its compliance with Ontario Securities Commission ("OSC") Policy 57-603.

Further to the Fareport news release dated December 29, 2006, the Company reports that progress is still being made and discussions and negotiations continue with respect to a new financing arrangement with potential arms-length investors. However, there can be no assurances of a successful conclusion. The refinancing will be subject to completion of agreements and shareholder and regulatory approval.

The company is currently up to date with respect to its financial statements and management reporting. The unaudited financial statements for the three months ended October 31, 2006 and for October 31, 2005 and related Management Discussion and Analysis have been filed on SEDAR.

Regarding the previously announced agreement to settle the civil claim against Fareport's former management, advisors and certain investors, the revised settlement agreement should be completed pending the execution of settlement documentation and mutual releases and the closing of a new financing arrangement.

The temporary management and insider cease trade order (the "MCTO") imposed pursuant to OSC Policy 57-603 continues to be in effect. The MCTO prohibits present and certain past directors, officers and insiders of Fareport from trading in securities of Fareport.

Fareport will continue to provide updates on these and related matters in accordance with OSC Policy 57-603.

Fareport cannot guarantee that forward-looking statements contained in this news release will materialize. Nor is it possible for Fareport to commit itself to updating information about risks and other factors pertaining to its business that might appear in this or any other public disclosure documents.

Neither the TSX Venture Exchange, nor any other Regulatory Authority has approved or disapproved of the contents of this news release.

Contact Information

  • Fareport Capital Inc.
    Mr. Lou Elmaleh
    Chairman and Chief Executive Officer
    (416) 750-1167 Ext. 400