Fareport Capital Inc.

Fareport Capital Inc.

October 23, 2006 11:46 ET

Fareport Capital Inc. Update

TORONTO, ONTARIO--(CCNMatthews - Oct. 23, 2006) - Fareport Capital Inc. (TSX VENTURE:CAB) -

Fareport Capital Inc. ("Fareport" or the "Company") wishes to provide an update with regards to its compliance with Ontario Securities Commission ("OSC") Policy 57-603.

The Company is up-to-date with respect to its financial statements and management reporting. Management is currently negotiating a refinancing agreement that if successful, will provide Fareport with financial stability and a means for future growth. For details of the proposed financing arrangement please refer to the Fareport news release dated September 25, 2006. While Fareport still proposes to complete the refinancing, several of the terms of the refinancing will not be proceeding as described in the previous news release. Negotiations are ongoing with the investors to conclude a revised agreement. Further details will be provided once the changes are finalized. The transaction is subject to certain conditions, as well as shareholder and regulatory approval. The Company has applied for the required regulatory approval.

Regarding the previously announced agreement to settle the civil claim against Fareport's former management, advisors and certain investors, the revised settlement agreement will be completed pending closing of a new financing arrangement.

The temporary management and insider cease trade order (the "MCTO") imposed pursuant to OSC Policy 57-603 continues to be in effect. The MCTO prohibits present and certain past directors, officers and insiders of Fareport from trading in securities of Fareport.

Fareport will continue to provide updates on these and related matters in accordance with OSC Policy 57-603.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Fareport Capital Inc.
    Mr. Lou Elmaleh
    Chairman and Chief Executive Officer
    (416) 750-1167 Ext. 400