RAB Special Situations L.P.

Lalo Ventures Ltd.

Lalo Ventures Ltd.

February 02, 2005 13:20 ET

RAB SPECIAL SITUATIONS L.P./Lalo Ventures Ltd.-Announcement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RAB SPECIAL SITUATIONS L.P.

AND LALO VENTURES LTD.

TSX VENTURE SYMBOL: LAL

FEBRUARY 2, 2005 - 13:20 ET

RAB SPECIAL SITUATIONS L.P./Lalo Ventures
Ltd.-Announcement

LONDON, UNITED KINGDOM--(CCNMatthews - Feb. 2, 2005) - RAB Special
Situations L.P. ("Special Situations") announces that it subscribed for
a total of 1,400,000 units (the "Units") of Lalo Ventures Ltd. (TSX
VENTURE:LAL) (the "Company") at a price of Cdn.$0.35 per Unit. Each Unit
consists of one (1) common share in the share capital of the Company (a
"Share") and one-half (1/2) of one (1) Share purchase warrant (a
"Warrant"). Each one (1) whole Warrant shall entitle Special Situations
to purchase one (1) Share (a "Warrant Share") at a price of Cdn.$0.53
per Share for a period of one (1) year after the Closing Date. The
transaction took place off the market by way of private placement and
closed on January 28, 2005.

Special Situations has ownership of and control over the securities
purchased in the Private Placement. The purchased securities represent
approximately 10.33% of the issued and outstanding Shares on a partially
diluted basis (assuming exercise of its Warrants) ("Partially Diluted
Basis").

Immediately after the Private Placement, Special Situations and its
joint actors, if any, had ownership of and control over, assuming
exercise of the Warrants, 5,300,000 Shares representing approximately
24.16% of the issued and outstanding Shares on a Partially Diluted Basis.

Special Situations purchased Units for investment purposes only and not
with the purpose of influencing the control or direction of the Company.
Special Situations together with joint actors, if any, may, subject to
market conditions, make additional investments in or dispositions of
securities of the Company in the future, including additional purchases
of Shares. Special Situations and its joint actors, if any, do not,
however, intend to acquire 20% of any class of the outstanding voting or
equity securities of the Company.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    RAB Special Situations L.P.
    Mr. Neil Warrender
    (44) 20-7389-7000
    nw@rabcap.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.