North American Logistics Services Inc. Acquires Convertible Debentures of Pacific Safety Products Inc.

TORONTO, ONTARIO--(Marketwired - Feb. 20, 2015) - North American Logistics Services Inc., a company wholly-owned and controlled by Mr. Terry Vaudry, a director and officer of Pacific Safety Products Inc. (the "Company") (TSX VENTURE:PSP), has acquired, effective February 18, 2015, a convertible debenture of the Company in the principal amount of $291,500 (the "Debenture") by way of private placement by the Company. The Debenture is convertible into common shares in the capital of the Company ("Common Shares"), representing approximately 2.83% of issued and outstanding Common Shares (assuming no options or debentures of the Company are exercised or converted other than those held by Mr. Vaudry or North American Logistics Services Inc.).

Following the acquisition, Mr. Vaudry has beneficial ownership of, or the power to exercise control or direction over, the following securities of the Company: (i) 11,678,852 Common Shares; (ii) 1,000,000 options ("Vaudry Options") to purchase Common Shares at an exercise price of $0.10 per share; and, (iii) the Debenture. Assuming the exercise of the Vaudry Options and conversion of the Debenture, Mr. Vaudry would have beneficial ownership of, or the power to exercise control or direction over, an aggregate of 14,622,185 Common Shares, representing approximately 21.30% of the then issued and outstanding Common Shares (assuming no options or debentures are exercised or converted other than the Vaudry Options and Debenture). Of the securities described above, North American Logistics Inc., a company wholly-owned by Mr. Vaudry, has beneficial ownership of the following securities of the Company: (i) 2,143,352 common shares; and, (ii) the Debenture. Mr. Vaudry has the power to exercise control or direction over such securities.

North American Logistics Inc. relied on the accredited investor exemption from the prospectus requirements of securities legislation in connection with the purchase of the Debenture.

The Debenture was acquired for investment purposes. Mr. Vaudry and/or North American Logistics Inc. may, depending on market and other conditions, increase or decrease their ownership of the Company's securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities. In addition, Mr. Vaudry is a director and officer of the Company, and may from time to time receive common shares issued by the Company in settlement of accrued compensation owing to him, consistent with past practice of the Company; however there is no agreement between Mr. Vaudry and the Company in respect thereof at this time. In addition, North American Logistics Inc. may receive common shares in settlement of interest that becomes payable pursuant to and in accordance with the terms of the Debenture.

An Early Warning Report in respect of the acquisition has been filed on SEDAR and can be viewed at www.sedar.com.

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