Russell Breweries Inc.
TSX VENTURE : RB

Russell Breweries Inc.

October 05, 2010 20:46 ET

Russell Breweries Inc. Announces Non-Brokered Private Placements for Gross Proceeds of Up to $2,000,000

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 5, 2010) - Russell Breweries Inc. (TSX VENTURE:RB) (the "Company") is pleased to announce a non-brokered private placement of an aggregate of $1,000,000 principal amount of convertible debentures (the "Convertible Debentures"). The Convertible Debentures will mature on the date that is two years from the date of issuance and bear interest at 10% per annum, payable quarterly. The principal amount of the Convertible Debentures is convertible into common shares of the Company, at any time from the date of issuance until the maturity date, at a price equal to $0.15 per common share.

The Company will also be conducting a non-brokered private placement of units (the "Units") at a price of $0.08 per Unit for additional proceeds of up to $1,000,000. Each Unit will consist of one common share and one share purchase warrant (a "Warrant"), each Warrant entitling the holder to purchase one additional common share at a price of $0.15 per common share for a period of two years from the date of issuance.

The private placement of Convertible Debentures and the private placement of Units (the "Offerings") will be conducted in reliance upon certain prospectus and registration exemptions and each of the Offerings will be available to participants. The securities issued pursuant to the Offerings will be subject to a hold period of four months and one day in compliance with applicable securities laws and the rules of the TSX Venture Exchange. The net proceeds from the Offerings will be used to reorganize long term debt, enhance marketing efforts and for general working capital requirements.

The Company may pay finder's fees and commissions in connection with the Offerings in accordance with the policies of the TSX Venture Exchange.

The Offerings and the payment of finder's fees and commissions in connection with the Offerings are subject to regulatory approval including acceptance by the TSX Venture Exchange.

ABOUT THE COMPANY: Russell Breweries Inc. produces premium beers in Western Canada in breweries located in British Columbia and Manitoba. All products are held to the highest quality standards, brewed without any preservatives, ensuring that the passion that goes into crafting the beers comes through in the taste. Russell Breweries Inc. is a public company trading on the TSX Venture Exchange under the symbol "RB". The Russell Brewing Company in British Columbia and the Fort Garry Brewing Company in Manitoba are wholly-owned subsidiaries of Russell Breweries Inc.

Neither the 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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