Russell Breweries Inc. Announces Record Date and Amount of Return of Capital

SURREY, BC--(Marketwired - March 21, 2017) -

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Russell Breweries Inc. (NEX BOARD: RB.H) ("Russell" or the "Company") is pleased to announce that following the completion of the sale of all or substantially all of its assets related to its two former operating business in two separate transactions on December 2, 2016 and December 17, 2016 (the "Asset Sales"), the board of directors of the Company has fixed the amount and record date for the first cash distribution by way of a return of capital, principally funded from the proceeds of the Asset Sale (the "Return of Capital"). The shareholders of the Company previously approved such return of capital at the Company's annual general and special meeting held on November 28, 2016, as more particularly described in the management information circular of the Company dated October 26, 2016 (the "Circular").

The Return of Capital will be in the amount of CAD$0.05 per Russell common share (the "Russell Shares"), subject to any withholding tax, if any, to be paid to all registered shareholders of record at the close of business on April 4, 2017. The aggregate proceeds to be paid to the shareholders of the Company will be approximately CAD$4,354,189 and the payment will be made on April 14, 2017 (the "Payment Date").

The Company received aggregate proceeds of CAD$6,165,545 upon the completion of the Asset Sales. The aggregate amount of the Return of Capital was determined by the Board of Directors following the repayment and satisfaction, or the provision for the repayment and satisfaction, of all of the liabilities owed to creditors of the Company and the maintenance of reserve funds for the Company to satisfy ongoing costs and liabilities. As more particularly described in the Circular, the Company anticipates receiving additional funds currently held in escrow by the end of 2017, which would represent the held back portions of the purchase price with respect to the Asset Sales (the "Holdback Funds"). Russell anticipates completing one or more future distributions by way of return of capital, including a final return of capital following receipt of the Holdback Funds. Upon completion of all such distributions, the Company expects to have satisfied all of its liabilities and returned all of its remaining assets, which shall be in the form of cash, to its shareholders, following which, the Company expects to proceed to dissolve Russell and its wholly owned subsidiary.