Mr. Y. Dov Meyer reports

TERRA FIRMA CORPORATION ANNOUNCES $6 MILLION FINANCINGS

Terra Firma Capital Corp. has entered into an agreement with a syndicate of underwriters, led by Beacon Securities Ltd., which has agreed to purchase, on a bought-deal basis, eight million common shares of the company at a price of 63 cents per common share for aggregate gross proceeds to the company of $5.04-million. The company has also granted the underwriters an overallotment option, exercisable in whole or in part at any time on or up to 30 days after the closing of the bought deal offering, to purchase up to an additional 1.2 million common shares. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the bought deal offering will be $5,796,000. The common shares offered pursuant to the bought deal offering will be offered by way of a short-form prospectus to be filed in all of the provinces of Canada (excluding Quebec) and on a private placement basis in certain other jurisdictions outside of Canada.

Concurrently with the bought deal offering, the company intends to complete a private placement of approximately 1,587,300 common shares at a price of 63 cents per common share to certain insiders of the company, for gross proceeds to the company of approximately $1-million. The common shares issued pursuant to the private placement will be subject to resale restrictions for a period of four months from the closing date of the private placement.

The company plans to use the net proceeds from each of the bought deal offering and the private placement to finance future loan investments and for general corporate and working capital purposes.

The bought deal offering and the private placement are expected to close on or about Oct. 15, 2014, and are subject to certain conditions including, but not limited to the receipt of applicable regulatory approvals, including approval of the TSX Venture Exchange and the securities regulatory authorities, as well as the satisfaction of other customary closing conditions.

The underwriters will receive a cash commission of 7 per cent of the gross proceeds raised in connection with the bought deal offering, and common share purchase warrants entitling the underwriters to purchase within 12 months after closing of the bought deal offering, common shares equal to 7 per cent of the aggregate number of securities sold pursuant to the bought deal offering at the offering price per common share.