GrowthWorks Canadian Fund Provides Update on Redemption Management Plan

TORONTO, ONTARIO--(Marketwire - May 23, 2012) - GrowthWorks Canadian Fund Ltd. ("Canadian Fund") today announced an update with respect to the previously announced Redemption Management Plan ("RMP") for the Canadian Fund's Class A shares. After securing the necessary regulatory order, Canadian Fund closed weekly Class A share redemptions on November 10, 2011 and, subject to securing a further regulatory order, proposes to process redemptions of Class A shares under the RMP on a semi-annual basis in amounts determined by the Board of Directors.

Current Status of the RMP

At Canadian Fund's June 28, 2012 annual and special meeting of shareholders (the "AGM"), Canadian Fund's shareholders will be asked to approve the RMP, in particular the fund's proposal to implement semi-annual redemption processing under the RMP until November 10, 2013 and to authorize the Board of Directors, without further approval by shareholders, to extend semi-annual redemption processing for a further 12 months thereafter to November 10, 2014, in all cases subject to the Fund having available cash to fund redemptions. Any further extensions of the RMP would be subject to securing further shareholder approval.

Commenting on the RMP, David Levi, President of Canadian Fund, stated, "We believe the RMP is the best way for Canadian Fund to manage liquidity for its shareholders. The RMP allows for redemptions to be funded with available cash while seeking to maximize return potential for all shareholders."

Background on the RMP

The RMP was formulated to maintain meaningful levels of investor liquidity while at the same time preserve cash needed to fund follow-on investments in Canadian Fund's most promising portfolio companies. Follow-on investments allow the upside potential in the portfolio to be cultivated and optimized for shareholders. Canadian Fund has applied for but not yet received a regulatory order that would permit the Canadian Fund to implement semi-annual Class A share redemptions under the RMP.

Commenting further on the RMP, David Levi stated, "The RMP aims to preserve capital so that Canadian Fund may back the best companies in its portfolio through to an exit. We believe that a number of companies in the portfolio are well positioned for exits that will generate substantial cash for the Canadian Fund."

If the necessary regulatory order is secured, semi-annual redemptions would be processed based on redemption values determined by the Board of Directors after taking into consideration projected divestment activity and the Canadian Fund's follow-on investment needs, liabilities and operating commitments. Redemption values may be increased or decreased in the discretion of the Board of Directors if divestment activity exceeds or falls short of projected levels. While other retail venture capital funds have previously ceased redemptions, none has proposed implementing semi-annual redemption processing. The RMP represents a novel approach to managing liquidity and reflects the unique circumstances of Canadian Fund, including its very mature venture portfolio as compared to other retail venture capital funds that have ceased redemptions. The regulatory review process surrounding the RMP is taking longer than it generally does with more routine applications.

There can be no assurance that Canadian Fund will secure the regulatory order needed to implement semi-annual redemption processing under the RMP or that the Fund will have sufficient available cash to process redemptions. If shareholders do not approve the RMP or if such approval is obtained but the regulatory order needed to implement semi-annual redemption processing is not, the Board of Directors will review alternative mechanisms for distributing available cash while Canadian Fund Class A share redemptions remain closed.

After the AGM, Canadian Fund will issue a press release announcing the results of the shareholder vote on the RMP. Canadian Fund will also continue to provide updates on the regulatory review process through press releases and communications with investment advisors.

Forward-Looking Statements: This press release contains forward-looking statements about future Canadian Fund Class A share redemptions, Canadian Fund's ability to make follow-on investments and the value, timing and impact on Canadian Fund's cash position of divestments from Canadian Fund's venture investment portfolio. These statements are based on beliefs and assumptions of management of Canadian Fund at the time the statements are made, including beliefs and assumptions about Canadian Fund's ability to secure the regulatory order needed to process Class A share redemptions semi-annually as contemplated under the RMP, the Fund's ability to generate sufficient funds to process redemptions under the RMP, future market conditions and future levels of divestment activity and Class A share redemption requests. These beliefs and assumptions are subject to known and unknown risks and uncertainties, including risks and uncertainties associated with seeking discretionary regulatory orders, volatility of market conditions and, in turn, the climate for divestment activity, performance of portfolio companies, valuations of portfolio companies, financing needs of portfolio companies and the availability of capital to satisfy such financing needs and other risks and uncertainties disclosed in Canadian Fund's most recently filed prospectus and other regulatory filings posted on SEDAR at www.sedar.com. These risks and uncertainties may cause actual results, events or developments to be materially different from those expressed or implied by such forward-looking statements. Unless required by law, neither Canadian Fund nor its manager assumes any obligation to update any forward-looking statements or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results or other factors.

Commissions, trailing commissions, management fees and expenses all may be associated with investment fund purchases. Read a fund's prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. Canadian Fund purchased the assets of Canadian Science and Technology Growth Fund and Capital Alliance Ventures in 2005, of ENSIS Growth Fund in 2008 and of Canadian Medical Discoveries Fund in 2009, in each case in exchange for Class A shares. ENSIS is a registered trademark of ENSIS Capital Corporation.