BC Discovery Fund Announces $2.9 Million Redemption Offer to Holders of All Outstanding Class B Common Shares

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2012) - British Columbia Discovery Fund (VCC) Inc. is pleased to announce that it is making an "Early Class B Redemption Offer" to holders of all outstanding Class B common shares ("Class B Shares"). The Fund has realized net cash proceeds from the sale of portfolio shares such that a "Qualified Liquidity Event" has occurred pursuant to the redemption rights and restrictions of the Class B Shares.

This redemption offer is to all holders of Class B Shares. The objective of the Fund is to redeem all outstanding Class B Shares, which have an approximate redemption value of $2.9 million.

Holders of Class B Shares who wish to accept this Early Class B Redemption Offer must place or have their authorized investment dealer or broker place an irrevocable redemption acceptance through FundSERV (Code DCC 200) during the period of June 5, 2012 through to 1:00 p.m. Vancouver time on Tuesday, June 19, 2012 ("Redemption Acceptance Period").

As specified in the rights and restrictions of the Class B Shares, the redemption value of each Class B Share redeemed will be determined on Friday, June 22, 2012, which is the first valuation date of the Fund after the end of the Redemption Acceptance Period. The Fund will redeem all Class B Shares where holders have properly submitted their redemption acceptances on or before the end of the Redemption Acceptance Period.

Assuming that all holders of Class B Shares accept this Early Redemption Offer, the Fund will have only Class A common shares outstanding. The Fund has determined that it has sufficient cash available to meet the minimum investment requirements of the Fund to the end of 2012, after providing for the redemption offer disclosed herein.

"With this Early Class B Redemption Offer, we are intending to eliminate the Class B redemption overhang," said John McEwen, CEO of the Fund. "We understand those of our Class A common shareholders that have held their shares for longer than five years are anxious to have their shares redeemed and we are continuing to work diligently on exit opportunities for several of the Fund's more mature portfolio companies with a view to creating an opportunity for redemption of Class A shares."

The Fund is continuing to sell its Class A Common Shares under its 2012 tax allocation. The Class A Shares are eligible for a 30% tax credit and are redeemable only after a minimum five-year period after issuance provided that the Fund has sufficient funds for redemption and is in compliance with its obligations under the Small Business Venture Capital Act and other conditions.

About British Columbia Discovery Fund (VCC) Inc.

British Columbia Discovery Fund (VCC) Inc. was established to make venture capital investments in a portfolio of small businesses in British Columbia that qualify under the Small Business Venture Capital Act, focusing on all of B.C.'s top internationally recognized technology clusters; information technology (software and hardware), mobile technology (wireless and networking solutions), clean technology (alternative energy and energy-saving technology solutions), new media and health and life sciences.

Established in 2002 and managed by Discovery Capital Management Corp., the Fund is focussed on making diversified investments in British Columbia with the objectives of achieving long-term capital appreciation for its shareholders and contributing to the growth in value and employment of the technology industry in British Columbia. In addition to offering a means of participating in the potential of British Columbia's newest technology ventures, the Fund offers significant tax savings to eligible British Columbia individual and corporate investors. The Fund, which offers its shares on a continuous basis, has raised approximately $74 million to date and has investments in thirteen developing technology companies. B.C. resident investors are entitled to receive a tax credit equal to 30% of the amount invested in Class A Shares of the Fund; Class B Shares of the Fund are not eligible for tax credits. To obtain further information about the Fund, please contact a registered advisor or visit www.sedar.com or www.bcdiscoveryfund.com.

John McEwen, CEO, B.C. Discovery Fund (VCC) Inc.

Harry Jaako, President, B.C. Discovery Fund (VCC) Inc.

This press release is not an offer to sell or a solicitation of an offer to buy common shares. This press release may include statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Specifically, there are no assurances that the Fund will be able to sell its remaining shareholdings of Avigilon, or that any such sale will result in a capital gain on the Fund's investment in Avigilon, or that the estimated increase in the fair value of the Fund's investment in Avigilon as a result of the completion of the Avigilon IPO will be sustained in secondary market trading. The Fund cautions that actual performance, including the ability of the Fund to sell or redeem any of its own shares, will be affected by a number of factors, many of which are beyond its control. Future events and results may vary substantially from what the Fund currently foresees.