Family Memorials Announces Closing of Public Offering

THUNDER BAY, ONTARIO--(Marketwire - July 13, 2011) - Family Memorials Inc. (TSX VENTURE:FAM) (the "Corporation") announces that pursuant to public offering by way of a Short Form Prospectus dated June 14, 2011 (the "Offering") of a minimum of $2,845,000 and a maximum of $4,870,000 aggregate principal amount of 10% secured convertible debentures (the "Debentures") at a price of $1,000 per Debenture, it has now closed on $4,833,000 aggregate principal amount of Debentures. The Debentures have a maturity date of June 15, 2016 (the "Maturity Date") and bear interest at an annual rate of 10% payable semi-annually on June 15 and December 15 in each year commencing December 15, 2011. The Debentures are redeemable by the Corporation on or after June 15, 2014 for a cash payment consisting of the outstanding principal amount of the Debentures, the outstanding accrued and unpaid interest to the date of redemption and a premium of 5% of the principal amount of the Debentures.

Each Debenture is convertible into common shares of the Corporation (the "Common Shares") at the option of the holder at any time prior to the Maturity Date at a conversion price of $0.19 per Common Share, being a conversion rate of 5,263.1579 Common Shares per $1,000 principal amount of Debentures. Holders converting their Debentures will receive accrued and unpaid interest thereon from the period of the last interest payment date on their Debentures prior to the date of conversion to the date that is the day prior to the date of conversion.

The Debentures are secured against all of the assets of the Corporation and its subsidiaries.

Macquarie Private Wealth Inc. (the "Agent") acted as agent pursuant to the Offering and was paid a cash commission equal to 10% of the gross proceeds raised pursuant to the Offering except for the gross proceeds from the issuance of Debentures in the principal amount of $845,000 to Lakehead Monuments Ltd. ("Lakehead"), in which case the Agent was paid 3% of the gross proceeds from the issuance of Debentures to Lakehead. In addition, the Agent and sub-agent were granted an aggregate of 2,232,369 non-transferable options to purchase Common Shares of the Corporation at $0.19 per share, which options expire July 12, 2013.

An over-allotment option to sell up to an additional $487,000 aggregate principal amount of Debentures has been granted to the Agent.

About Family Memorials

The Corporation is in the business of consolidating retail businesses selling granite monuments for placement on individual cemetery lots. The Corporation carries on business through its wholly-owned subsidiaries Grajack Industries Ltd. in Belleville, Ontario; R.H. Verduyn Granite Co. Ltd., in Peterborough, Ontario; Barber Monuments Ltd. in St. Catharines, Ontario; and Somerville Memorials Ltd. in Calgary, Alberta; and under the Family Memorials banner in Brandon, Manitoba.