Mr. Cody Slater reports

BLACKLINE GPS ANNOUNCES CLOSING OF FINANCING

Blackline GPS Corp. has completed its previously announced non-brokered private placement offering, issuing a total of 3,043,648 units at a price of $1.15 per unit for total gross proceeds of $3,500,195. Blackline experienced greater demand than anticipated for the offering and, as a result, it was oversubscribed by 443,648 units, resulting in a financing increase of nearly $510,200, compared with the amounts previously announced.

Blackline will use the proceeds of the offering to support several activities, including further expansion of sales activities into the United States and Europe, increasing working capital to support commercialization and manufacturing of the company's upcoming Loner 900 system, and to further accelerate the corporation's product development program.

As insiders of the corporation purchased a total of 1,414,348 units in connection with the offering, such purchases were considered related-party transactions, pursuant to Multilateral Instrument 61-101, protection of minority securityholders in special transactions. Pursuant to MI 61-101, absent an available exemption, the corporation would be required to obtain minority approval and a formal valuation for the issuance of units to such insiders. Such an exemption was available for the issuance of units to the insiders pursuant to sections 5.5(a) and 5.7(a) of MI 61-101, respectively, because at the time the transaction was agreed to, neither the fair market value of the subject matter of, nor the fair market value consideration for the transaction, as it related to insiders, exceeded 25 per cent of the corporation's market capitalization.

Each unit comprises one common share of the corporation and one common share purchase warrant. Each warrant entitles the holder to acquire one common share for a period of 48 months following the closing of the offering at an exercise price of $1.40 per common share.

In connection with the offering, Blackline paid a total of $210,011.70 and issued a total of 304,364 compensation warrants to arm's-length finders for services rendered in connection with the offering. Each compensation warrant entitles the holder thereof to acquire one unit at any time prior to the date that is 24 months following the closing of the offering at an exercise price of $1.15 per unit. The warrants issuable on exercise of the compensation warrants will have the same terms and conditions as the warrants described above.

In connection with the offering's close, DAK Investments Corp., the lead investor in the offering, has been provided the right to nominate a mutually agreeable individual to serve on the board of directors of the corporation, subject to customary conditions and approvals.

All securities issued in connection with the offering are subject to a hold period of four month plus one day.

A copy of this news release will be available on SEDAR.

We seek Safe Harbor.