Discovery Air Inc. acquires Discovery Mining Services



    LONDON, ON, Jan. 7 /CNW/ - David Taylor, Chairman & C.E.O. of Discovery
Air Inc., ("Discovery"), (TSX: DA.A), is pleased to announce that the company
has completed the acquisition of the business of Discovery Mining Services
Ltd., ("DMS"). The total purchase price at closing was $3 million cash, a
$2 million note payable to vendor, and $5 million in Discovery Air common
shares. In accordance with the Letter of Intent signed with the vendor, the
number of Discovery Air common shares was calculated using the volume weighted
average closing price of such shares for the 20 trading days ending 5 trading
days before closing. This calculation resulted in 4,284,140 Discovery Air
common shares being issued on closing.
    DMS is a leading provider of remote exploration camps, expediting,
logistics and staking to a broad spectrum of gold, base metal, uranium, and
diamond exploration companies who conduct operations in the Northwest
Territories, Nunavut, Northern Alberta, and Northern Saskatchewan.
    Mr. Taylor commented, "The acquisition of Discovery Mining is a key
component in Discovery Air's efforts to develop and deliver fully integrated,
turn-key aviation services to resource industry sector customers and
Government clients operating in the north."
    Rod Brown, President of DMS stated, "We are very pleased to become a
member of Discovery Air's business alliance. This partnership not only
provides us with access to a broad spectrum of corporate administrative
services, but also improved access to Discovery Air's northern-based air
transport businesses. We see this as an opportunity to expand our service
portfolio, improve operational efficiencies and enhance customer service
levels."

    Discovery Air's mission is to build shareholder value by creating an
alliance of profitable aviation businesses that can realize synergies and
economies of scale and deliver safe, professional air services to clients in
selected niche markets.
    Discovery Air's Class A common shares trade on the Toronto Stock Exchange
under the symbol DA.A
    Discovery Air's Debentures trade on the Toronto Stock Exchange under the
symbol DA.DB.





For further information:

For further information: Wade MacBain, Director of Investor Relations,
Phone: (519) 951-3580, Toll Free: (866) 903-3247 ext. 3580, Email:
wadem@discoveryair.com


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