Discovery Air completes closing of exercise of $4.5 million over-allotment option

YELLOWKNIFE, May 27, 2011 /CNW/ – Discovery Air Inc. (“Discovery Air”) is pleased to announce that it has completed the issuance of an additional $4,500,000 principal amount of 8.375% convertible unsecured subordinated debentures (the “Convertible Debentures”) at a price of $1,000 per debenture for additional aggregate gross proceeds to Discovery Air of $4,500,000. The Convertible Debentures were issued pursuant to the exercise of the over-allotment option granted to the underwriters of its recently completed $30,000,000 offering of Convertible Debentures. The Convertible Debentures were sold by a syndicate of underwriters led by GMP Securities L.P. and included Canaccord Genuity Corp., National Bank Financial Inc., Cormark Securities Inc. and PI Financial Corp.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.