Chalk Media Corp.
TSX VENTURE : CKM

Chalk Media Corp.

October 20, 2008 07:00 ET

Chalk Media Corp. Announces Equity Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 20, 2008) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH UNITED STATES NEWSWIRE SERVICES

Chalk Media Corp. (TSX VENTURE:CKM) ("Chalk") announces that it has filed a preliminary short form prospectus in connection with a "best efforts" public offering (the "Offering") of common shares for gross proceeds of a minimum of $3 million up to a maximum of $5 million. Chalk has engaged Blackmont Capital Inc. (the "Agent") to act as agent in connection with the Offering. Chalk has granted the Agent an over-allotment option to purchase up to 15% of the common shares sold pursuant to the Offering, exercisable at any time up to 30 days from the closing of the Offering. The Offering is subject to certain conditions, including regulatory approval.

The Offering will be priced in the context of the market with final terms of the Offering to be determined at the time of pricing. Chalk intends to use the net proceeds of the Offering to increase research and development and sales and marketing efforts for Chalk's software products, repay outstanding debt on its convertible debentures and for working capital and general corporate purposes. The Offering is expected to close on or about November 4, 2008.

The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold within the United States absent registration or an applicable exemption from such registration requirements. This release does not constitute an offer for sale or a solicitation of an offer to buy the securities in the United States.

About Chalk Media Corp.

Chalk's mobile content deployment system allows multimedia content to be created, securely pushed and tracked on BlackBerry® smartphones. Our software and content helps organizations communicate with their employees, business partners and customers. Additional information is available at www.chalk.com.

The BlackBerry® and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited ("RIM"). RIM assumes no liability and makes no representation, warranty or guarantee in relation to third party products or services.

Notice To Readers

This press release includes forward-looking statements. Words such as "believe", "may", "will", "estimate", "intend", and "expect" (and the negative thereof) usually identify forward-looking statements. Forward-looking statements are statements about the future, and are always subject to uncertainty and risks (both known and unknown), including those discussed under the heading "Risk Factors" in Chalk's most current annual information form dated April 25, 2008. Because of the risks and uncertainty inherently associated with them, investors should not place undue reliance on forward-looking statements.

Although management of Chalk believes the assumptions used to make such statements are reasonable and has attempted to identify important factors that could cause actual results, performance, or achievements of Chalk to differ materially from those contained in the forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated, or intended. Certain material factors or assumptions are applied by Chalk in making forward-looking statements, including, without limitation, factors and assumptions regarding completion of the Offering, sales and acceptance of our products, collection of revenue, sales cycles, operating costs, taxes and fees. There can be no assurance that the forward-looking statements herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Chalk does not undertake to update any forward-looking statements herein, except in accordance with applicable securities laws. Further information on Chalk Media Corp. is available at www.sedar.com.

chalkboard™, Mobile chalkboard™ are trademarks or registered trademarks of Chalk Media Corp. All other companies and products listed herein are trademarks or registered trademarks of their respective holders. In particular, BlackBerry® is a registered trademark of RIM and Power Point® is a registered trademark of Microsoft Corp.

The TSX Venture Exchange has not reviewed the contents of this release and is not responsible for its accuracy.

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