ILI Technologies (2002) Corp.
TSX VENTURE : ILI

ILI Technologies (2002) Corp.

April 18, 2011 09:00 ET

ILI Technologies Enters Into Memorandum of Understanding

CALGARY, ALBERTA--(Marketwire - April 18, 2011) - ILI Technologies (TSX VENTURE:ILI) is pleased to announce that its 100% wholly- owned Mexican subsidiary Cdn Oilfield Technologies & Solutions S. de R.L de C.V. ("COTS") has entered into a Memorandum of Understanding ("MOU") with an established Mexican construction company (the "Company") to provide financial and advisory services to arrange financing on a project by project basis in exchange for revenue sharing terms. The Company is contracted to Schlumberger, the largest oil and gas service company in Mexico, under a master agreement ("Master Agreement") with Pemex for the construction of infrastructure in urban and suburban areas valued up to 812 million pesos (approximately 65 million CDN$). Under the terms of the Master Agreement, all aspects of the project are fully insured and securitized with a performance bond.

COTS will source funding on behalf of the Company, for an initial project valued at 79,632,625 million pesos (approximately 6.5 million CDN$) for the construction of infrastructure for an onshore platform and a right-of-way access road for Pemex. The required funding under the MOU is estimated at 40 million pesos (approximately 3.3 million CDN$) and the release of funds to the Company will be allocated under a controlled monitored process to fund project management costs, labour, the purchase of materials and construction equipment. COTS will earn 50% of the net income from the initial project. COTS will retain the first right of refusal for future funding for the remainder of the services to be provided by the Company to Schlumberger and Pemex under the Master Agreement.

The project is expected to commence in May with completion in approximately 70 days after the start of the project. Re-payment of the financing to COTS is anticipated to be completed approximately 60 days after the completion of the project under a direct assignment agreement between COTS and the respective parties.

ILI is currently reviewing financing strategies to secure non-dilutive capital under the MOU. The MOU is conditional on financing and discussions are currently underway with key capital sources. Export Development Corporation Canada (EDC) is listed as an approved source of financing in the Master Agreement.

Phil D'Angelo states, "This is a great window of opportunity for COTS and one that affords alliances with credible companies in Mexico. There are multiple projects currently under review and ILI is pleased to be considered as a revenue partner. It's important for COTS to diversify its business in Mexico and find multiple sources of revenue with low business risk and exposure. The opportunity before us is solid as it comes with full securitization components attached to the projects. COTS has and continues to align itself with credible companies, to assist in the completion of contracts awarded to them. We now offer an ideal platform to enter the Mexico energy sector".

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Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, anticipated sales of the company and completion of installation projects . Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and Mexico and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other industry and geographic specific risk factors. Investors are cautioned that this list of risk factors should not be construed as exhaustive.

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