ePals Corporation
TSX VENTURE : SLN

April 10, 2012 15:58 ET

ePals Corporation Announces Best Efforts Private Placement

WASHINGTON, DISTRICT OF COLUMBIA--(Marketwire - April 10, 2012) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

ePals Corporation (TSX VENTURE:SLN) ("ePals" or the "Company"), an education media company and leading safe social learning network, announces that it has entered into an agreement with a syndicate of agents led by Cormark Securities Inc. ("Cormark") and including National Bank Financial Inc. and Canaccord Genuity Corp. (collectively the "Agents") to offer for sale, on a best efforts private placement basis, voting common shares of ePals ("Shares") at a price of C$0.41 per Share for gross proceeds of between C$8 million and C$10 million (the "Offering").

Upon closing of the Offering, the Agents will receive a cash commission equal to 6% of the gross proceeds of the Offering, subject to reduction in respect of certain subscribers as agreed to between Cormark and ePals.

The Offering may close in one or more tranches with closing of the first tranche anticipated to occur on or about April 19, 2012. Closing of the Offering is subject to the receipt of all applicable regulatory approvals including the approval of the TSX Venture Exchange. The Shares issued in connection with the Offering will be subject to resale restrictions for a period of four months from the closing date(s) of the Offering.

The net proceeds of the Offering will be used for working capital and general corporate purposes.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

About ePals Corporation

ePals Corporation (TSX VENTURE:SLN) is an education media company and the leading provider of safe social learning networks. Focused on the K-12 market, ePals offers elementary and secondary school administrators, teachers, students and parents worldwide a safe and secure platform for building educational communities, providing quality digital content and facilitating collaboration for effective 21st century learning. ePals' award-winning products include: the ePals Global Community™; SchoolMail®365; LearningSpace®; In2Books®, a common core eMentoring program that builds reading, writing and critical thinking skills; and popular children's educational publishing brands including Cricket® and Cobblestone®. ePals customers and partners include the International Baccalaureate, Microsoft Corporation, Dell Inc., IBM Corp., National Geographic and leading school districts across the United States and globally. ePals serves approximately 800,000 educators and reaches millions of teachers, students and parents in approximately 200 countries and territories. For the ePals Global Community, visit www.epals.com. Corporate information is available at www.corp.epals.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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