Mr. Bill Espley reports

DCS ANNOUNCES ENTERING INTO LOAN AGREEMENTS AND ISSUES WARRANTS

Direct Communication Solutions Inc. has entered into two loan agreements with two creditors for an aggregate principal amount of $325,000 (U.S.) ($439,400 (Canadian)) with interest charges of 19 per cent and 15 per cent per annum on the principal.

As an additional consideration for agreeing to finance the proceeds of the loan agreements, Direct Communication shall grant common stock purchase warrants to purchase up to 65,000 shares of common stock to the creditors where each warrant will entitle the holder to purchase one share of common stock of Direct Communication for 24 months from the date of issuance of the warrants at an exercise price of $3.14 (Canadian) ($2.32 (U.S.)).

The loan agreements and the issuance of the warrants associated with the loan agreements are subject to the prior written approval of the Canadian Securities Exchange.

About Direct Communication Solutions Inc.

Direct Communication is a technology solution integrator focusing on connecting the Internet of Things. It provides real solutions that solve real problems. Its software applications and scalable cloud services collect and assess business-critical data from all types of assets. Direct Communication is headquartered in San Diego, Calif., and is publicly traded on the OTCQX (DCSX), Canadian Securities Exchange (DCSI) and Frankfurt Stock Exchange (7QU).

We seek Safe Harbor.