Gemoscan Canada, Inc.

Gemoscan Canada, Inc.

April 18, 2011 16:24 ET

Gemoscan Canada, Inc. Announces Closing of $405,000 Private Placement

TORONTO, ONTARIO--(Marketwire - April 18, 2011) - Gemoscan Canada, Inc. ("Gemoscan" or the "Corporation") (CNSX:GES) (MUN:1GE) is pleased to announce the final closing effective April 18, 2011 of the $405,000 non-brokered private placement of units announced in the Corporation's press release dated April 14, 2011. The private placement consisted of the issuance in two tranches of units (each, a "Unit" and collectively, the "Units") at a price of $0.40 per Unit, with each Unit consisting of one Class A common share of the Corporation (each, a "Common Share" and collectively, the "Common Shares"), and one Common Share purchase warrant (each a "Warrant" and collectively, the "Warrants"), each whole Warrant entitling the holder to purchase one Common Share over a 24 month period at a price of $0.60 per Common Share. The first tranche closed on April 15, 2011 and consisted of 925,000 Common Shares and 925,000 Warrants. The Common Shares referable to the first tranche are restricted from resale before August 16, 2011. The second tranche (necessitated by the late delivery of funds to the Corporation, which funds were received on April 18, 2011) closed on April 18, 2011 and consisted of 87,500 Common Shares and 87,500 Warrants. The Common Shares referable to the second tranche are restricted from resale before August 19, 2011. Proceeds from the Private Placement will be used to enhance the Corporation's cash position and strengthen its working capital position.

Forward-Looking Information

This news release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that Gemoscan believes, expects or anticipates will or may occur in the future. These forward-looking statements reflect the current expectations or beliefs of Gemoscan based on information currently available to Gemoscan. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of Gemoscan to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Gemoscan. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Gemoscan disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Gemoscan believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

The CNSX has not reviewed and does not accept responsibility for the adequacy of this release.

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