Canada: Russell Breweries announces $1,500,000 brokered private placement

Russell Breweries announced on April 12 that it has arranged a brokered private placement, on a best efforts basis, of up to 5,000,000 Units at a price of $0.30 per Unit, with each Unit consisting of one common share and one non-transferable common share purchase Warrant. Each whole Warrant will entitle the holder to purchase one additional share of the company at a price of $0.50 for a period of two years from the completion of the financing subject to an early expiry provision that once resale restrictions on the Shares having expired and upon the Issuer's shares trading at or above a weighted average trading price of $0.75 for 20 consecutive days the Issuer may give notice that the Warrants will expire 30 days from the date of providing such notice.

The Units will be sold to eligible purchasers in the provinces of British Columbia, Alberta and Ontario and other jurisdictions as may be mutually agreed by Russell and Bolder Investment Partners, Ltd., (the "Agent"). Upon closing, the Agent will receive a cash commission equal to 7.5% of the gross proceeds of the Offering, of which the Agent may elect to be paid up to half in Units. In addition, the Agent will be granted agent's warrants (the "Agent's Warrants") entitling the Agent to purchase up to such number of common shares of the Issuer equal to 20% of the total number of Units sold through the Offering, for a period of two years from the date of closing of the Offering. Each Agent's Warrant will be exercisable into one (1) common share of the Issuer at $0.30 and will also be subject to early expiry conditions. In addition, the Agent will be paid an administrative fee of $5000, a Corporate Finance Fee of 100,000 units, and a retainer amount of $5000 towards the reimbursement of all reasonable expenses related to the Offering. All shares issued pursuant to the Offering, and any shares issued pursuant to the exercise of Agent's Warrants, will be subject to a four month hold period.

The proceeds from the Offering will be used to acquire additional capital equipment including a bottling line, for acquisitions and for general working capital. The private placement is subject to completion of satisfactory due diligence by the Agent with respect to the Company, completion and execution of appropriate documentation, and acceptance for filing by Canadian Trading and Quotation System Inc.

Russell Brewing Company produces premium draught beer for fine pubs and eateries in British Columbia. Using all natural ingredients and traditional beer-making techniques, Russell beer is brewed for people who love beer. Products include: Russell Cream Ale, Russell Pale Ale, Russell Honey Blonde Ale, Russell Extra Special Lager plus the two seasonal brews, Russell Lemon Ale and Russell Winter Ale. Russell Brewing Company is a wholly owned subsidiary of Russell Breweries.

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