Loyalist Completes Convertible Debenture Offering

TORONTO, ONTARIO--(Marketwired - Dec. 5, 2013) - Loyalist Group Limited (TSX VENTURE:LOY) (the "Company") announces that it has closed the previously announced offering (the "Offering") of 7.5% unsecured subordinated debentures due November 30, 2018 (the "Debentures"), for gross proceeds of $5,250,000. In connection with the Offering, Beacon Securities Limited and Cormark Securities Inc. acted as the underwriters (the "Underwriters") and received an aggregate commission of $257,125 and 428,541 compensation options. Compensation options are exercisable at an exercise of $0.60 for a period of 24 months following the closing date.

The Debentures and the common shares to be issued on exchange of the Debentures are subject to a hold period in Canada until April 6, 2014. The common shares to be issued on the exercise of the compensation options are also subject to a hold period in Canada until April 6, 2014. The Offering is subject to receipt of the final approval of the TSX Venture Exchange.

"The closing of this financing sends a clear message that there is continued support for Loyalist and its roll-up strategy. I would like to thank the Underwriters for their efforts in closing this financing on a timely basis. The Company remains focused on the continued initiatives of negotiating accretive transactions and the integration of operations in an orderly and efficient manner", stated Andrew Ryu, CEO of Loyalist.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Loyalist

Loyalist owns and operates private English as a Second Language (ESL) Schools, Career Colleges and Community Colleges in Toronto, Vancouver, Victoria and Halifax.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.