Extenway Announces Proposed Debt Settlement and Second Tranche of a $2,910,000 Private Placement; Management Change

MONTREAL, QUEBEC--(Marketwired - March 2, 2015) - Extenway Solutions Inc. ("Extenway" or the "Company") (TSX VENTURE:EY) announces that it is arranging, subject to regulatory approval, the private placement and the debt settlement operations described below in order to immediately improve the financial position of the Company with a view of setting the Company on firm financial ground to execute its business plan. The proposed private placement and debt settlement operations are as follows:

(a) a private placement of 30,125,000 common shares of the Company, at an issue price of $0.08, with a group of accredited investors, including the Caisse de dépôt et placement du Québec ("Caisse") and Desjardins-Innovatech, s.e.c. ("DI"), existing shareholders of Extenway, for minimum gross proceeds to the Company of $2.41 million (the "Private Placement"). When combined with the $500,000 already raised pursuant to the closing of the first tranche on December 23, 2014, the aggregate amount of this round of financing will reach $2,910,000; and

(b) the settlement of up to $10,425,928.61 (as of the date of this press release) in outstanding indebtedness under outstanding debentures and working capital advances by issuing up to 130,324,109 common shares of the Company (as this number is determined as of the date of this press release) at an issue price of $0.08 (collectively, the "Debt Settlement"). The amount of the Debt Settlement includes advances in excess of $900,000 provided by (a) Mr. John McAllister (directly or indirectly),the President and Chief Executive Officer of Extenway ("McAllister"), and (b) Mr. David Brown, Chief Financial Officer of Extenway ("Brown"), since May 1^st, 2014. As a result, upon the closing of the Private Placement and the Debt Settlement, investments in excess of $3,825,000 will have been made in the Company since May 1^st, 2014. The indebtedness subject to the Debt Settlement consists in both the principal amount and the accrued and unpaid interest of:

1. those issued and outstanding unsecured convertible debentures issued by the Company held by John McAllister Holdings Corporation, a company controlled by McAllister ("McAllisterCo"), Caisse, DI and 12 other investors for an aggregate principal amount of $6,170,000. As of today, the total indebtedness under said debentures is $7,687,078.61 (the "Convertible Indebtedness"). The principal amount of the debentures is currently convertible into common shares of Extenway, at a price of $0.13 per share, however, with the current market price of the Company's common shares on the TSX Venture Exchange being approximately $0.04, there is no incentive to any holders of debentures to convert. The Company has entered into discussions with the holders of debentures with respect to the conversion of all or a portion of their debentures into common shares, at a price of $0.08, the same issue price as the one provided for in the Private Placement. McAllisterCo, Caisse and DI have agreed to convert their debentures into common shares as part of the proposed Debt Settlement; and
2. those unsecured advances from McAllister, Brown and another officer of the Company in the amount of $2,013,850, $710,000 and $15,000, respectively, which were made to assist the Company with its working capital needs (the "Working Capital Advances").