SelectCore Ltd.
TSX VENTURE : SCG

SelectCore Ltd.

June 18, 2008 09:46 ET

SelectCore Closes $2 Million Financing Facility

TORONTO, ONTARIO--(Marketwire - June 18, 2008) - SelectCore Ltd. (TSX VENTURE:SCG) announced today that is has closed a $2,000,000 (U.S.) debt financing facility with Valens Offshore SPV II Corp. ("Laurus Funds"), a New York based institutional fund that specializes in making investments in growth-stage public companies.

The $2 million financing facility is a revolving line of credit maturing after 12 months with an option to extend the term for an additional 364 day period. As consideration for the loan extension, the Company must make two payments of $57,500, the first being due on maturity and the second six months thereafter. The fixed interest rate is 11%, decreased to 10% after 6 consecutive months of positive EBITDA. The facility is secured by a first lien on all assets of SelectCore Ltd. and its subsidiaries. In connection with the financing, the Company issued Laurus Funds 3,809,523 common shares. Research Capital Corporation was paid a finders fee equal to 4% of the value of the financing.

"We are delighted to have partnered with Laurus Funds for this financing" said Keith McKenzie, CEO of SelectCore. "This funding route is less dilutive for our shareholders and the proceeds will allow us to expedite our growth plan while greatly improving our working capital position". Ryan Deslippe, President of SelectCore further commented, "Management views Laurus Funds as a strategic partner that can open up the door to future business opportunities".

About SelectCore:

SelectCore (TSX VENTURE:SCG) is in the business of providing prepaid telecommunication solutions to the credit-challenged consumer market across Canada. The offerings, which include wireless, home telephone, long distance and broadband internet are marketed through private-label partnerships as well as company's own nation-wide distribution channel of independent and corporate chain retailers. SelectCore's technology division maintains its own telecom network infrastructure servicing many of Canada's largest incumbent phone companies. (i)Profit 100 ranked SelectCore one of Canada's fastest-growing companies in 2006 and again in 2007.

This news release contains projections and other forward-looking statements regarding future events. Such statements are predictions, which may involve known and unknown risks, uncertainties and other factors, which could cause the actual events or results and objections to differ materially from those expressed.

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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