Mr. Wade Larson reports

URTHECAST CORP. ANNOUNCES EURO 25 MILLION TERM LOAN

UrtheCast Corp.'s wholly owned Spanish subsidiary, UrtheCast Imaging SLU (UrtheCast Spain), has obtained a senior secured term loan of 25 million euros, representing approximately $37.5-million (Canadian) from Banco de Sabadell SA. The loan has a five-year term and will accrue interest at the euro interbank offered rate six-month rate (but no less than 0 per cent) plus 2.6 per cent per annum.

Of the loan, 20 million euros will be used to reduce an intercompany loan made by UrtheCast to UrtheCast Spain in connection with the acquisition of Deimos Imaging from Elecnor SA in July, 2015. The remaining proceeds of five million euros will be held on deposit with Sabadell as a new guarantee to replace an existing bank guarantee to Elecnor SA provided in connection with the acquisition. By replacing the prior guarantee, five million euros of restricted cash has been released, returning these funds to the company for general working capital purposes.

UrtheCast's chief executive officer, Wade Larson, commented: "We are very pleased to have closed this new term loan. We believe this new capital is a strong endorsement of the company and its financial outlook. The refinancing provides the company with substantial financial resources in support of the company's operations and growth initiatives."

The loan is secured by certain assets of UrtheCast's wholly owned foreign subsidiaries. Repayment of 20 million euros of the loan will be made in five equal payments on each anniversary date of the closing of the loan. The remaining five million euros will be payable at the end of the term using the funds held for the issuance of the new bank guarantee, which will expire prior to the maturity of the loan. Prepayments will be permitted at UrtheCast Spain's option, subject to a 1-per-cent prepayment fee under certain circumstances.

The loan agreement and ancillary agreements in respect of the loan contain representations and warranties, affirmative and negative covenants (including requirements for UrtheCast Imaging to meet certain financial ratios on a continuing basis), and events of default that are customary for lending facilities of this nature.

We seek Safe Harbor.