General Donlee Announces Normal Course Issuer Bids for 2014 Convertible Debentures and Common Shares

TORONTO, Nov. 10, 2011 /CNW/ - General Donlee Canada Inc. ("General Donlee" or the "Corporation") (TSX: GDI), announced today that the Corporation has filed a notice with the Toronto Stock Exchange ("TSX") and received its approval to purchase, through the facilities of the TSX for cancellation, up to $4,616,200 in aggregate principal amount of its convertible unsecured subordinated debentures due 2014 (the "2014 convertible debentures"), representing 10% of the public float outstanding as of November 4, 2011. The price that the Corporation will pay for any 2014 convertible debentures purchased under the normal course issuer bid will be the prevailing market price at the time of purchase. As of November 4, 2011, there was $46,162,000 in aggregate principal amount of the 2014 convertible debentures issued and outstanding. Purchases may commence on November 14, 2011 and will terminate on November 13, 2012.

From May 1, 2011 to October 31, 2011, the weighted average daily trading volume of the Fund's 2014 convertible debentures was $15,980 in aggregate principal amount of its 2014 convertible debentures.  Under the TSX Rules, General Donlee may purchase up to 25% of the weighted average daily trading volume, or $3,900 in aggregate principal amount of its 2014 convertible debentures, on any day, subject to a weekly "block purchase" exemption.

General Donlee also announced today that it has filed a notice with the TSX and received its approval to purchase, through the facilities of the TSX for cancellation, up to 739,491 of its common shares ("Shares"), representing approximately 10% of the public float outstanding as of November 4, 2011. The price that the Corporation will pay for any Shares purchased under the normal course issuer bid will be at the prevailing market price at the time of such purchase. As of November 4, 2011, there were 10,664,634 issued and outstanding Shares. From May 1, 2011 to October 31, 2011, the average daily trading volume of General Donlee shares was 16,399 Shares. Under the TSX rules, the Fund may purchase up to 25% of the average daily trading volume, or 4,100 Shares, on any day, subject to a weekly "block purchase" exemption. Purchases may commence on November 14, 2011 and will terminate on November 13, 2012.

The Directors and Senior Management of General Donlee are of the opinion that from time to time the purchase of 2014 convertible debentures and Shares at the prevailing market price would be a worthwhile investment and in the best interests of the Corporation and its Shareholders. General Donlee has not acquired any 2014 convertible debentures nor any Shares by means of open market transactions pursuant to a normal course issuer bid during the past 12 months.

This news release contains forward-looking statements which reflect management's expectations regarding the Corporation's plans to purchase for cancellation Shares and 2014 convertible debentures under the normal course issuer bids.  These statements are based on management's reasonable assumptions and beliefs in light of information that is currently available to them.  These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements, including, without limitation, regulatory approval, market and economic conditions, availability of sellers, changes in laws and regulations, and availability of working capital.  There can be no assurance that the Corporation will acquire any Shares or 2014 convertible debentures.  Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place any undue reliance on such forward-looking information.  The Corporation does not undertake to update these forward-looking statements other than as required by applicable securities laws.

Company Profile

General Donlee Canada Inc. is a leading diversified manufacturer of precision-machined products for the military, commercial and general aerospace industries and also is a specialist in the manufacture of precision-machined products for the industrial products and power generation industries. General Donlee's operating strategy focuses on targeting niche markets for products that are aligned with its sophisticated manufacturing capabilities and skilled workforce.

SOURCE General Donlee Canada Inc.

For further information:

Garen Mikirditsian, Chief Financial Officer
Telephone: (416) 743-4417
E-mail:  info@generaldonlee.com
Web site: www.generaldonlee.com

Organization Profile

General Donlee Canada Inc.

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