Essex Angel Capital Inc.

May 26, 2011 18:32 ET

Essex Angel Capital Inc. Announces Loan Advance to 3 Gyros Inc.

TORONTO, ONTARIO--(Marketwire - May 26, 2011) - Essex Angel Capital Inc. (TSX VENTURE:EXC.P) (the "Corporation") is pleased to announce that further to its press release (the "Prior Press Release") dated May 2, 2011 announcing its proposed Qualifying Transaction, as such term is defined in policy 2.4 (the "Policy") of the TSX Venture Exchange (the "TSX-V"), subject to TSX-V approval and in accordance with section 8.5 of the Policy, the Corporation will provide a secured loan (the "Loan") in the amount of $200,000 to 3Gyros Inc. ("3Gyros") on customary terms and conditions prior to the completion of its Qualifying Transaction. The Loan will be payable on demand and will earn interest at a rate 2.0% per annum. The Loan will be secured by an already existing general security agreement covering all of 3Gyros' present and after acquired assets. The Corporation previously advanced a secured loan (the "Initial Loan") to 3Gyros in the amount of $25,000 on May 4, 2011. Subject to TSX-V approval and satisfaction of the conditions precedent outlined in the Prior Press Release, the Loan together with the Initial Loan will convert into, and form part of, the secured debentures of 3Gyros (the "3Gyros Investment") that the Corporation committed to purchase pursuant to a term sheet dated April 30, 2011, as more particularly described in the Prior Press Release. Subject to TSX-V approval and satisfaction of the conditions precedent outlined in the Prior Press Release, the 3Gyros Investment together with the Wellness Investment (as such term is defined in the Prior Press Release), will constitute the Corporation's Qualifying Transaction.

This press release contains certain forward-looking statements about the Corporation's future plans and intentions. Wherever possible, words such as "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict" or "potential" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect Management's current beliefs and are based on information currently available to management as at the date hereof. Forward-looking statements included or incorporated by reference in this press release include statements with respect to: (i) certain terms of the 3Gyros Investment; (ii) the proposed advance of the Loan; (iii) the proposed terms of the Loan; and (iv) the Qualifying Transaction.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Corporation cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Corporation assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

Completion of the Qualifying Transaction is subject to a number of conditions, including but not limited to, TSX-V acceptance. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Qualifying Transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

The TSX-V has in no way passed upon the merits of the proposed Qualifying Transaction and has neither approved nor disapproved the contents of this press release. Neither TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

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