Spot Coffee (Canada) Ltd.

Spot Coffee (Canada) Ltd.

June 20, 2013 13:31 ET

SPoT Coffee Announces New SPoT Orchard Park Cafe and Partnership

TORONTO, ONTARIO--(Marketwired - June 20, 2013) - SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company") is pleased to announce that it has entered into an agreement with Mr. Keith Bernard to lease a two storey building including basement at premises situated and commonly known as 6519 East Quaker Street, Orchard Park, New York. The Company will be developing its new SPoT Orchard Park in the two-storey building as soon as it obtains the town of Orchard Park's approval for change of use and a building permit.

The Company is equally pleased to announce that it has entered into a strategic operating partnership agreement with Mr. Keith Bernard for SPoT Orchard Park. This represents yet another third-party operating partnership for SPoT. This business model optimizes the financing of the Company's growth across Upstate New York. The partnership with Mr. Bernard, a well-established and successful businessman in Orchard Park, provides equal funding for all of the construction and development costs of SPoT Orchard Park by the Company and Mr. Bernard on a 50/50 basis, while the Company maintains a 60% majority shareholding and Mr. Bernard maintains a 40% shareholding in SPoT Coffee Orchard Park LLC; the corporate owner of SPoT Orchard Park.

Orchard Park is an affluent town in Erie County and a suburb of Buffalo, New York with a population of approximately 30,000. This exceptional town contains Ralph Wilson Stadium, the home stadium of the Buffalo Bills National Football League team; Chestnut Ridge Park, a popular county park and a major attraction in Upstate New York; and the Eire County Community College. The demographics of Orchard Park meet the criteria set by management for the development of a SPoT café. Being situated within a suburb of Buffalo, the Orchard Park location will leverage the well-established SPoT Coffee brand. Furthermore, the local businesses and community of Orchard Park strongly support and sponsor many outdoor musical and visual entertainment events in the summer, including the highly successful Quaker Arts Festival.

SPoT Orchard Park is located in a detached and fully renovated historic building in the heart of the Orchard Park community which previously housed the head offices of the Citizen Newspaper. In keeping with SPoT's focus on selecting quality café locations capable of serving, promoting and complimenting their communities, this new café is strategically located on the major intersection of Orchard Park town center, near a busy pedestrian thoroughfare, local businesses and high schools, and has ample parking. The café will feature a patio as well as unique architectural design elements such as a solarium, second storey open concept seating, and a central fireplace.

About SPoT Coffee

SPoT Coffee trades on the TSX Venture Exchange under the symbol SPP. SPoT designs, builds and operates community oriented cafés that provides its customers with the highest quality service, signature made-to order meals and the world's finest in-house roasted gourmet coffee. Each SPoT café is distinctively designed to meet the uniqueness of the local neighborhood, creating a warm and friendly gathering place for the community. SPoT's commercial business focuses on retail stores, business accounts and third party resellers such as universities and hospitals.

Forward Looking Statements

Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Except as required by applicable securities requirements, the Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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 the release.

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