Mr. Praveen Arichandran reports

ARGO CORPORATION ANNOUNCES PROPOSED FINANCING ARRANGEMENTS

Argo Corp. intends to issue and sell up to 21.25 million common shares of the company at a price of 40 cents per common share for proceeds of up to $8.5-million pursuant to a non-brokered private placement and intends to enter into a $1.5-million secured loan pursuant to a non-binding letter of intent (LOI).

The company intends for the offering to be limited to key strategic investor groups and partners; however, the company retains the discretion to accept subscriptions from any investor who qualifies under applicable securities laws. There is no minimum offering amount applicable to the offering and the company may not complete the offering in full at its discretion. The offering is not expected to materially affect control of the company. Proceeds of the offering will be used for working capital and general corporate purposes. Closing of the offering is subject to acceptance by the TSX Venture Exchange of the terms of the offering and other customary closing conditions. The company may close the offering in one or more tranches at its discretion. The common shares issued pursuant to the offering are subject to a statutory hold period of four months and one day from the applicable date of issuance, in accordance with applicable Canadian securities laws. There can be no assurances that the offering will be completed on the terms set out herein, or at all.

The company entered into the non-binding LOI with North American Bond Company Ltd. (the lender) in respect of the proposed $1.5-million loan, expected to bear interest at 12 per cent per annum and mature two years from closing. The loan is expected to be secured by a first-ranking general security agreement. Completion of the loan remains subject to the negotiation and execution of definitive documentation and acceptance of the TSX-V. In connection with the loan, the non-binding letter of intent contemplates that the company would issue to the lender, subject to TSX-V acceptance, up to 2,062,500 non-transferable common share purchase warrants, each exercisable to acquire one common share at an exercise price of 44 cents, expiring on the loan maturity date. Proceeds of the loan are intended to be used for working capital and general corporate purposes.

About Argo Corp.

Argo delivers the first-ever vertically and publicly integrated city transit system, designed to augment public transportation and create a network of intelligently routed vehicles that work together to serve and scale to the needs of entire cities, putting people in control of their mobility.

We seek Safe Harbor.