Difference Capital Realizes Gain in Its Virgin Gaming Position

TORONTO, ONTARIO--(Marketwire - Jan. 29, 2013) - Difference Capital Funding Inc. ("DCF") (TSX VENTURE:DCF) is pleased to announce that it has sold approximately 15% of its $19.8 million convertible debentures (the "Debentures") in Virgin Gaming at a 20% premium to its acquisition price at June 2012. As a result, DCF has experienced gross realized and unrealized gains on the investment of approximately $4 million, or about 1.1 cents net per common share on a basic basis.

The sale of the Debentures took place in two separate transactions, both to institutional investors. One sale was made as part of a larger secondary transaction pursuant to which a global institutional investor acquired common shares and $2 million of Debentures for a total investment of $10 million in Virgin Gaming. DCF continues to hold an 11.6% stake in Virgin Gaming on a fully diluted basis and remains highly supportive of the company, but sought to reduce its position opportunistically due to the size of the holding.

"This transaction is exciting and rewarding for DCF and our shareholders," said Neil Johnson, Chief Executive Officer of DCF. "Our investment in Virgin Gaming has resulted in a 20% gain for DCF after only seven months. New institutional investor participation in the ownership of Virgin Gaming is also a great endorsement of its business model and provides further confidence in our remaining investment."

About Difference Capital Funding Inc.

DCF is a publicly listed merchant bank focused on creating shareholder value through strategic investments in, and advisory services for, growth companies.

For further information on DCF, its management, board and portfolio of investee companies, please visit www.differencecapital.com.

Cautionary Notes

This press release contains forward-looking statements regarding future growth, results of operations, performance, business prospects and opportunities involving DCF. Words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, are forward-looking statements within the meaning of securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of DCF. These statements are not historical facts but instead represent only management's and the board's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve known and unknown risks, assumptions, uncertainties, and other factors that may cause actual results or events to differ materially from what is expressed, implied or forecasted in such forward-looking statements. In addition to the factors the Company currently believes to be material such as, but not limited to, the ability to secure additional financings, the ability to close on future investments, the ability of DCF to achieve its investment objectives, its dependence on the efforts of management, risks associated with fluctuations in net asset value and valuation of DCF's portfolio, its ability to operate on a profitable basis, changes in interest rates, evaluation of its provision for income and related taxes, and other factors, such as general, economic and business conditions and opportunities available to or pursued by DCF, not currently viewed as material could cause actual results to differ materially from those described in the forward-looking statements. Although DCF has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be anticipated, estimated or intended. Accordingly, shareholders should not place any undue reliance on forward-looking statements as such information may not be appropriate for other purposes. DCF does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release except as required by applicable law.