Goodfellow Announces Delay in Filing Its Quarterly Financial Statements

DELSON, QUEBEC--(Marketwired - Oct. 13, 2016) - Goodfellow Inc. (TSX:GDL) ("Goodfellow" or the "Corporation") announces today that it will not be able to file by October 15, 2016 its interim financial report, interim management discussion and analysis and interim certificates for the quarter ended August 31, 2016 (the "Third Quarter Financial Information").

Management has recently noticed certain discrepancies, relating mainly to the cost of inventory, preventing it from ensuring the integrity of its financial results within the required deadlines. These difficulties stem from the implementation at the beginning of the current fiscal year on December 1, 2015 of the Corporation's new integrated financial information system. Management is taking all necessary measures to resolve the situation promptly. To this end, a team of KPMG is assisting Goodfellow in making the ongoing verifications. The Corporation expects being able to file its Third Quarter Financial Information by the end of its fiscal year ending November 30, 2016.

The Corporation has applied to the Autorité des marchés financiers under National Policy 12-203 respecting Management Cease Trade Orders ("NP 12-203") for the grant of an order prohibiting all trading of the securities of the Corporation by its Chief Executive Officer, Chief Financial Officer and its directors as an alternative to a cease trade order.

If the management cease trade order is granted, Goodfellow will comply with the alternative information guidelines set out in Part 2 and Section 9 of NP 12-203. The guidelines, among other things, require the Corporation to issue by way of news release bi-weekly default status reports containing the information required under Section 10 of NP 12-203 so long as the Third Quarter Financial Information has not been filed.

ABOUT GOODFELLOW

Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers and distributors of lumber and hardwood flooring products. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL. For more details, please go to www.goodfellowinc.com.