Russell Breweries Inc.

Russell Breweries Inc.

March 31, 2009 20:31 ET

Russell Breweries Inc. Announces Proposed Rights Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 31, 2009) - Russell Breweries Inc. (the "Company") (TSX VENTURE:RB), a producer of premium craft beer, today announced that it intends to carry out a rights offering to holders of common shares of the Company (the "Rights Offering"). The Company intends to issue one right for each common share of the Company held to shareholders of the Company as at a record at a date to be announced. Four rights will entitle the holder to purchase one unit of the Company at a price per unit to be determined, with each unit consisting of one common share of the Company and one warrant entitling the holder to purchase an additional common share of the Company. In connection with the Rights Offering, the Company has entered into a non-binding letter of intent with Bolder Investment Partners, Ltd. ("Bolder"), pursuant to which Bolder has agreed to serve as managing dealer and standby guarantor for the Rights Offering. The Company is preparing documentation for the Rights Offering and is seeking approval from the TSX Venture Exchange and applicable securities regulatory authorities. The pricing of the Rights Offering and the record date will be announced upon receipt of necessary regulatory approvals.

Russell Brewing Company Ltd. produces premium beer in British Columbia. Products include: Russell Cream Ale, Russell Pale Ale, Russell Honey Blonde Ale, Russell Extra Special Lager plus two seasonal brews, Russell Lemon Ale and Russell Winter Porter. Fort Garry Brewing Company Ltd. is Manitoba's largest brewer and distributor of premium quality beers including Fort Garry Dark Ale, Fort Garry Pale Ale, Fort Garry Premium Light, Fort Garry Red and Stone Cold Lager. Russell Brewing Company Ltd. and Fort Garry Brewing Company Ltd. are wholly owned subsidiaries of Russell Breweries Inc. (TSX VENTURE:RB).

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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