Mr. Brian Kalish reports

GEMOSCAN CANADA INC. ANNOUNCES IMPROVED SALES RESULTS FOR THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2014 AND PROVIDES FURTHER CORPORATE DEVELOPMENT UPDATE

Gemoscan Canada Inc. has released operational and financial results for the second quarter ended Sept. 30, 2014. (In this press release, all dollar amounts are expressed in Canadian currency, and results are reported in accordance with international accounting standards 34 (interim financial reporting), using accounting policies consistent with international financial reporting standards.)

The current financial results again reflect the company's previously announced acquisition of Physiomed Kennedy Inc., a multidisciplinary paramedical clinic, and consolidate relevant three- and six-month financial results therefrom. Also and again, included are three and six months of management fees generated from the previously announced definitive agreement with the paramedical clinic, Physiomed Yorkdale Inc., to provide operational management services to it.

For the three and six months ended Sept. 30, 2014, total revenues were $495,155 and $1,170,776, representing a decrease and increase of approximately 36 per cent and 12 per cent, respectively, versus the comparative periods in fiscal 2014.

For the three and six months ended Sept. 30, 2014, the company posted a net loss of $296,758 and $565,625, respectively. The loss represents a decrease of approximately 23 per cent and 9 per cent, respectively, versus the comparative periods.

The company further reported cash used for operating activities for the six months ended Sept. 30, 2014, of $207,005 versus $92,223, for the comparative period in fiscal 2014. The increase of $114,782 was driven by an increase in operating activity offset by a reduction in working capital.

As a further update to the company's news release of May 28, 2014, the company has provided the TSX Venture Exchange with its preliminary submission with respect to its proposed acquisition of all of the issued and outstanding common shares of 2275518 Ontario Inc. and a related company, jointly known as Abira Healthcare. The company continues to undertake due diligence and draft the necessary agreements and disclosure documents in support of the acquisition of Abira while Abira completes the requisite financial disclosure necessary to comply with the terms of the agreement and the exchange's requirements. The exchange has determined that shares of the company may not resume trading until such time as a final submission is made to the exchange regarding the proposed acquisition of Abira or the company elects to suspend the acquisition of Abira.

Also, in addition to the company's news release of May 8, 2014, the company has abandoned its prior announced proposed acquisition of a 100-per-cent interest in seven of Novo Healthnet's paramedical clinics due to a lack of readily available information from Novo Healthnet, resulting in unsatisfactory due diligence.

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