Discovery Air Inc. Completes Sale of Fire Services Business

TORONTO, ONTARIO--(Marketwired - Jan. 31, 2017) - Discovery Air Inc. ("Discovery Air" or the "Company") (TSX:DA.A) has completed its previously announced transaction (the "DAFS Disposition") to sell the fire services business operated by its wholly-owned subsidiary, Discovery Air Fire Services Inc. ("DAFS"), to certain affiliates of Clairvest Group Inc. ("Clairvest"). Due to a delay in obtaining certain regulatory approvals, MAG DS Corp. ("MAG"), part of the original buyer group intending to purchase the DAFS business, assigned its interest in the DAFS Disposition to certain affiliates of Clairvest, the other member of the original buyer group, in order to ensure a timely completion of the DAFS Disposition. MAG's interest in the DAFS Disposition was assigned to Clairvest pursuant to an assignment and amendment dated January 31, 2017 (the "Assignment Agreement"), of the transaction agreement (the "Transaction Agreement") dated September 8, 2016, governing the DAFS Disposition. The Assignment Agreement did not alter any of the material terms of the Transaction Agreement.

The DAFS Disposition was previously approved by a majority of minority shareholders of the Company at the Company's special meeting of shareholders held on November 15, 2016, as well as the special independent committee of the board of directors of the Company formed in connection with the DAFS Disposition and all non-interested members of the board of directors of the Company.

About Discovery Air

Discovery Air is a global leader in specialty aviation services. We deliver exceptional air combat training, medevac equipped aircraft services, airborne fire services, air charter services, helicopter operations, and transport and logistics support to ensure operational readiness, health, safety and vital lifelines for our clients and the communities we serve.

Discovery Air Fire Services Inc. currently provides, and has provided for almost three decades, aerial fire surveillance, airspace and aircraft management, and air transport services in support of the Ontario government's forest fire management program. As well, DAFS' provides court-related air transport services to a variety of provincial government agencies which operate in northwestern Ontario (carried on by DAFS' charter division, Walsten Air).

Discovery Air's Class A common voting shares and unsecured convertible debentures trade on the Toronto Stock Exchange (symbols DA.A and DA.DB.A, respectively).