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Message: Completes $2.64 Million Private Placement

Completes $2.64 Million Private Placement

posted on Apr 30, 2009 07:08PM

Attention Business Editors

CYMAT Completes $2.64 Million Private Placement Financing

Listing: TSX

Symbol: CYM


TORONTO, April 30 /CNW/ - Cymat Technologies Ltd. ("Cymat" or the"Company") today announced that it has completed its non-brokered private placement financing in the amount of $2,640,280.

Fraser MacKenzie acted as theCompany's fiscal advisor in connection with the offering. The Company issued a total of 9,031,190 Units (comprising a common share and a warrant to purchase a common share) at $0.14 per Unit and 9,827,945 Subscription Receipts (which become Units on approval by the Company's shareholders of the issue of the securities underlying the Units), also at $0.14 per Subscription Receipt.

The warrants

expire 2 years from closing of the transaction and are exercisable as follows: $0.25 for a period of 12 months following closing and $0.35 for the 12 months thereafter.

The net proceeds from the issue of Units (less certain escrowed amounts pertaining to the Subscription Receipts) were paid to Cymat at closing. The proceeds from the issue of Subscription Receipts plus the other escrowed amounts referred to above will be held in escrow pending shareholder approval of the issuance of the Units underlying the Subscription Receipts.

Upon obtaining such shareholder approval, the Subscription Receipts will be deemed to be immediately exercised and the net proceeds from the sale of Subscription Receipts plus certain escrowed amounts will be paid to the Company.

If shareholder approval is not obtained within the specified period, the gross proceeds attributable to the issue of Subscription Receipts, together with accrued interest, will be refunded to subscribers. Cymat intends to seek shareholder approval as soon as practicable.

This funding will enhance Cymat's financial resources as it continues to meet increased product demand from each of it's three market verticals - architectural, automotive and military. In particular, the Company anticipates significant revenue growth in its military business. Proceeds from this financing will be used to increase production capacity to facilitate same and to provide general working capital.

"With the high demand for our products - particularly our military SmartMetal, we expect to fully commercialize Cymat by the end of calendar year 2009," said Cymat President, Tim Hardman. "These financial resources will allow the Company to accelerate our business progress significantly," he added.

"We are pleased to have raised this capital in very difficult equity markets and an amount in excess of our expectations," said Michael Liik,

Executive Chairman of Cymat. He went on to say "Participating in the financing are several new institutions both from Canada and Europe."

Cymat develops innovative materials for industry. The Company has worldwide rights, through patents and licenses, for producing and licensing Stabilized Aluminum Foam. The ultra-light metallic foam is manufactured by bubbling gas through molten alloyed aluminum containing a dispersion of fine ceramic particles and can be produced as either Near-net Shapes or Flat Panels. The result is a new strategic material with a wide array of benefits, including a good stiffness-to-weight ratio, mechanical energy absorption at low stress levels, thermal and acoustic insulation, recyclability and relatively low cost of production.

Cymat is collaborating with a number of partners spanning the automotive, transportation and blast mitigation construction industries.

The foregoing press release contains forward-looking statements relating to the development of markets, development programs, future revenues and improvements in tech ology, which are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include the availability of funding, existing and future relationships with suppliers and manufacturers, the results of research and development activities, risks of technological breakthroughs that make Cymat stabilized aluminum foam less attractive, risks relating to the breadth, scope and enforceability of intellectual property rights, general industry and market conditions, availability of qualified personnel, and reliance on co-development partners.

For additional information with respect to these and other factors, see the reports filed by Cymat Technologies Ltd. with the Ontario Securities Commission. Cymat disclaims any intention or obligation to update or revise any forward-looking statement-30-

/For further information: Investors and Media: Michael Liik, Executive

Chairman, Cymat Technologies Ltd., Tel: (416) 307-4015, Email: [email protected];

Tim Hardman, President, Cymat Technologies Ltd., Tel: (905) 696-2421, Email:

[email protected]; Trevor Sandler, Chief Financial Officer, Cymat

Technologies Ltd., Tel: (905) 696-2427, Email:

[email protected]/

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