Mr. Brian Kalish reports

GEMOSCAN CANADA, INC. ANNOUNCES ISSUANCE OF SHARES FOR DEBT

Gemoscan Canada Inc. has entered into a shares-for-debt agreement totalling $15,000, with a non-arm's-length party with regard to outstanding management fees and proposes to settle the debt through the issuance of 142,857 Class A shares of the corporation at a deemed price of 10.5 cents, subject to the approval of the TSX Venture Exchange. The shares issued will be subject to a four-month-plus-one-day hold period from the date of issuance.

This shares-for-debt settlement and subsequent issuance of shares will not create a new control person.

We seek Safe Harbor.