Mr. Brian Kalish reports

GEMOSCAN CANADA ANNOUNCES UNSECURED LOANS AND ISSUANCE OF BONUS SHARES

Gemoscan Canada Inc. has entered into an unsecured loan agreement with an arm's-length party. The lender has provided the corporation a $150,000 loan, bearing interest at a rate of 8 per cent per annum and which matures on Aug. 31, 2013. Additionally, in connection with the loan, the lender will receive a bonus 129,032 Class A shares in the capital of the corporation at a price of 23.25 cents per share. All shares are subject to a statutory four-month-plus-one-day hold period from Aug. 31, 2012.

Gemoscan also wishes to announce that it has entered into an additional unsecured loan agreement with an arm's-length party. The holder has provided the corporation a $175,000 loan.

We seek Safe Harbor.