Mr. Christopher Reynolds reports

VOLATUS CAPITAL CORP. ANNOUNCES SHARES FOR DEBT TRANSACTION

Volatus Capital Corp. has entered into shares-for-debt agreements to satisfy $536,528.06 in debt owed to certain creditors of the company.

Under the terms of the debt settlement agreements, the company will issue an aggregate of 7,153,707 common shares at a deemed price of 7.5 cents per share to creditors of the company. The company determined to satisfy the indebtedness with common shares in order to preserve its cash for working capital.

The shares for debt transaction has been approved by the exchange. All securities issued will be subject to a four-month hold period which will expire on the date that is four months and one day from the date of issue.

Related party disclosure

Certain of the creditors are insiders of the company and, accordingly, the above-noted transaction is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities to be distributed in the transaction nor the consideration to be received for those securities, in so far as the transaction involves the referenced related parties, exceeds $2.5-million. The company did not file a material change report more than 21 days before the expected closing of the transaction as the details of the debt settlement and the participation therein by related parties of the company were not settled until shortly prior to closing and the company wished to close on an expedited basis for sound business reasons.