Mr. Jacob Shavit reports

DISCOVERY AIR ANNOUNCES PROPOSAL TO AMEND THE TERMS OF ITS 8.375% CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES DUE JUNE 30, 2016

Discovery Air Inc. will seek approval from holders of its 8.375-per-cent convertible unsecured subordinated debentures due June 30, 2016, to amend the terms of the debentures at a meeting of debentureholders to be held on Nov. 27, 2014.

The proposed amendments to the debentures consist of: (i) extending the maturity date of the debentures from June 30, 2016, to June 30, 2018, subject to the completion of an equity offering of the corporation's Class A common voting shares and/or Class B variable voting shares for minimum net proceeds of $5-million prior to June 30, 2016; and (ii) modifying the change of control provisions of such debentures to allow additional equity to be invested in the corporation by Clairvest Group Inc., without requiring the corporation to repurchase all of the debentures then outstanding after any investment.

Jacob (Koby) Shavit, the corporation's president and chief executive officer, stated: "Discovery Air's strategy requires additional capital to achieve its previously announced plan. These amendments will assist us in delivering on our objectives and growth opportunities by providing increased financial flexibility to access the capital needed. The amendments will also provide debentureholders with a longer period of time during which to receive, what we believe to be, an attractive yield in the current interest rate environment, based on the continued cash interest rate of 8.375 per cent."

Discovery Air is also pleased that two debentureholders are supportive of the company's strategy and the amendments. Holding a total of 28 per cent of the debentures, these debentureholders have entered into lock-up agreements with the corporation and intend to vote for/consent to the amendments. They recognize the advantage in being able to retain a cash-interest-bearing investment which allows for participation in the corporation's strategic growth.

Further information concerning the amendments will be outlined in the notice of meeting (and accompanying materials) to be sent to debentureholders in the coming weeks.

Kingsdale Shareholder Services has been retained by Discovery Air as the proxy solicitation and information agent in relation to the meeting. Debentureholders with questions can contact Kingsdale at 1-888-518-6559 toll-free in North America, collect at 416-867-2272 outside of North America or by e-mail.

We seek Safe Harbor.