Mr. Sandy Loutitt reports

BUILDERS CAPITAL MORTGAGE CORP. ANNOUNCES BOND OFFER

Builders Capital Mortgage Corp.'s participating bond offering has received approval for issuance by the TSX Venture Exchange. By way of this bond offering, the company will raise up to $50-million, the proceeds of which will be used in the company's continuing mortgage business to finance short-term, residential construction mortgages in Alberta and British Columbia.

The bonds will participate on a pari passu (equal) basis with the existing shares relative to returns and risk. The bonds and shares are aligned pro rata in accordance with their share capital contribution.

The pro rata structure of the bond offering and equal ranking with equity shares mean that shareholders are not exposed to any additional leverage risk as they would be with a traditional bond. The net result is a small increase in projected shareholder returns with no additional risk. Bond features include a redemption option every six months to facilitate short-term liquidity while still preserving mortgage quality security at a targeted 75-per-cent loan to value on the entirety of the bond proceeds. In contrast to a traditional bond, the participating bond derives its yield from the net yield of the mortgage portfolio versus a fixed interest rate.

Bondholders gain access to a professional management team with a long and successful record, proven risk remediation strategies, an existing and established borrower base, and an operating credit facility for effective cash management.

Sandy Loutitt, president and chief executive officer, said: "We are excited to be proceeding with this unique and positive fundraising development for the company. Alberta and Western Canada present an important market for the services of Builders Capital, and this new instrument allows the company to better expand its reach. At the same time, the bond offering benefits existing shareholders by giving them greater diversification of risk in their mortgage portfolio and by lowering their fixed cost of operations due to the larger capital pool."

About Builders Capital Mortgage Corp.

Builders Capital is a mortgage lender providing short-term, course-of-construction financing to builders of residential, wood-frame properties in Western Canada. The company commenced active operations on Dec. 12, 2013, on the closing of its initial public offering, whereupon it acquired a portfolio of mortgages from two predecessor companies.

Builders Capital's investment objective is to generate attractive returns, relative to risk, to provide stable and consistent distributions to shareholders while remaining focused on capital preservation and satisfying the criteria mandated for mortgage investment corporations as defined in the Income Tax Act.

As an MIC, Builders Capital is not subject to income tax provided that it distributes all of its taxable income as dividends to shareholders within 90 days of its Dec. 31 year-end. Such dividends are generally treated by shareholders as interest income, so that shareholders are in the same tax position as if their proportionate share of mortgage investments made by the company had been made directly by the shareholder.