True North Corporation

True North Corporation

May 03, 2007 17:07 ET

True North Corporation: Annual Financial Statements

MISSISSAUGA, ONTARIO--(CCNMatthews - May 3, 2007) - True North Corporation - The Return On Ideas Company™ (TSX VENTURE:TN) ("TNC" or the "Company") - today announced that it expects a delay in filing its annual consolidated financial statements for the year ended December 31, 2006 which, pursuant to applicable securities legislation, were required to have been filed with securities regulators on or before April 30, 2007. In connection with the delay in filing its annual financials and pursuant to applicable securities legislation the Company has applied for a temporary 'management cease trade order' that would prohibit all trading by certain current and former directors, officers and employees in the securities of the Company until the outstanding financial statements have been filed. The Company expects to file its annual financial statements by May 31, 2007.

The Company is in default of certain financial covenants under convertible debentures previously issued to Quorum Secured Equity Trust, SME Capital Corporation and Quorum Investment Pool Limited Partnership (collectively "Quorum"). Quorum has agreed to waive the breach of the aforementioned financial covenants on the condition that the terms of a Letter of Intent between Quorum Investment Pool Limited Partnership and the Company with respect to a proposed $1.7 million convertible debenture financing of the Company are implemented forthwith and the financial covenants set out in the proposed financing are satisfied. The Company is seeking TSX-V approval for the proposed financing. The Company is also in default of its loan agreement with an individual lender and is currently renegotiating the agreement with the lender.

Also at this time, the management of True North would like to take the opportunity to announce the resignation of Frank Peri as Director of the Corporation, and thank him for his years serving True North and its shareholders.

This news release may contain certain forward-looking statements that are subject to known and unknown risks and uncertainties. TNC makes no assurance that these forward-looking statements, denoted by words such as "expect", "should" and other similar qualifiers, will prove to be accurate and cautions readers to review the risks and uncertainties sections of its recent filings with securities administrators.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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