Mr. Michael Lorenzo reports

SPOT COFFEE PROVIDES UPDATE ON FRANCHISE BUSINESS MODEL

Spot Coffee (Canada) Ltd. is preparing to begin offering franchise Spot Coffee cafes beginning in the fall of 2014, pending franchise approval from the State of New York. Spot's management has been working diligently with its legal team to complete the required documents in order to obtain its New York franchise licence. The company, along with its legal team, is currently reviewing its final disclosure draft and intends to submit it to the State of New York this week.

The company is also pleased to announce that it is making positive progress in the monetization of its existing corporate cafes, which will be converted to licensed cafes once sold. All licensed cafes in New York state, including the recently licensed Spot Orchard Park, will convert to franchise locations upon final approval of the company's franchise documents. The company continues to receive a high volume of inquiries from potential new owners regarding its existing cafes.

"We are making positive headway every day with our franchise documentation and continue to focus our efforts to make sure we are successfully granted our franchising licence on schedule," commented Paul Price, senior vice-president of franchise operations for Spot Coffee. "Demand for existing cafes and new franchises continues to be robust. I look forward to finalizing the franchise application in the coming days, then turning my efforts to our next phase, which includes preparations to begin expanding via new franchise cafes."

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