Labrador Technologies Inc.

Labrador Technologies Inc.

May 17, 2010 19:00 ET

Labrador Technologies Inc. Announces Closing of Previously Announced Debt Conversion and Private Placement Financing

CALGARY, ALBERTA--(Marketwire - May 17, 2010) -


Labrador Technologies Inc. ("LTI" or "Labrador") (TSX VENTURE:LTX) is pleased to announce that it has closed its previously announced conversion of outstanding debt into common shares and concurrent private placement.

Debt Conversion

Certain creditors of LTI agreed to convert their combined existing subordinated debt, including accrued interest, of approximately $215,000 into approximately 2,388,889 common shares of Labrador (the "Debt Conversion"). The subordinated debt was converted at $0.09 per common share, which is a 20% premium to the closing price of the Labrador common shares on March 8, 2010 of $0.075.

Private Placement

Concurrently with the Debt Conversion, Labrador completed a non-brokered private placement (the "Private Placement") of 3,600,000 units of Labrador ("Units"), at a price of $0.10 per Unit, for proceeds of $360,000. Each Unit will consist of one (1) common share ("Common Share") of LTI, and one half (1/2) common share purchase warrant ("Warrant"), with each Warrant exercisable at a price of $0.20 per Common Share, for a period of 24 months following the Closing Date. No agent was retained in connection with the Private Placement, but LTI paid finder's fees to qualified persons in accordance with applicable securities laws. The securities issued pursuant to the closing of the Debt Conversion and the Private Placement are subject to trading restrictions until September 18, 2010.

Further Debt Conversion

In addition to the foregoing transactions, LTI and a creditor have agreed to convert an existing debt into 150,000 common shares of Labrador (the "Further Debt Conversion"). The Further Debt Conversion is subject to the approval of the TSX Venture Exchange Inc. (the "TSXV") and the receipt of all other necessary regulatory approvals

Labrador eTriever is a secure, web-based, generic data retriever, which thrives in complex database environments such as the Oil & Gas industry. eTriever™ goes beyond conventional oil and gas web access to provide wireless data retrieval for smartphones such as BlackBerry™ and iPhone™. Labrador ( trades on the TSXV under the symbol "LTX."

Note Regarding Forward-Looking Statements

This news release contains forward-looking statements relating to the completion of the Further Debt Conversion in order to take advantage of opportunities available in the current environment, Labrador's growth and business plans and business opportunities. These statements are based on certain factors and assumptions regarding the receipt of necessary regulatory approvals, expected growth, results of operations, performance, business prospects and opportunities. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Although Labrador believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward looking statements. The forward-looking statements contained in this news release are made as the date of this new release and the company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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