JYW Capital Corp. - Update on proposed qualifying transaction



    
    Agreement to acquire all of the shares of Hong Kong incorporated
    Golden Hill International Holdings Limited, a Chinese-based energy
    company
    

    VANCOUVER, Aug. 25 /CNW/ - JYW Capital Corp. ("JYW") (JYW.P/TSX-V)
announces the following updates to the disclosure pertaining to its proposed
Qualifying Transaction (being the proposed acquisition of all of the issued
and outstanding shares of Golden Hill International Holdings Limited ("Golden
Hill"), a Chinese-based energy company), as disclosed in JYW's June 25, 2009
News Release:

    
    1.  The disclosure pertaining to "coal seam gas content" in JYW's June
        25, 2009 News Release, dealing with Golden Hill's coalbed methane
        ("CBM") mining rights is clarified as follows, with this
        clarification also appearing in the Technical Report prepared by
        Norwest Corporation, of Calgary, Alberta, as disclosed in JYW's June
        25, 2009 News Release:

        "At present no tests have been performed to determine the Adsorbed
        CBM content of the coal on the Dananhu CBM Concession area. However,
        there is a method to forecast what the gas content might be, based on
        coal quality data. This method, supported by the Gas Research
        Institute of the United States, was developed by Kim and is thus
        referred to as the Kim Equation.

        This equation is based on results of testing of the gas content for a
        large number of coal seams from all coal bearing formations
        throughout the US. The plotted data distribution shows that there is
        a maximum value that has been achieved for the gas content at any
        particular coal quality and depth. Of course, this maximum value is
        not always achieved; the maximum occurs when the coal of any type and
        at any location is fully adsorption gas saturated which does not
        always occur.

        The Kim Equation was used to estimate the potential CBM gas content
        for the coal seams in the Dananhu CBM Concession. At an average depth
        of 700m and assuming the coal quality is consistent with the average
        values of the previous section of said Technical Report, the as
        received gas content may be as high as 235 scf/t. As noted in the
        Technical Report, this gas content is expected only if the seams are
        adsorption gas saturated and this may not be the case. In addition,
        the nature of the maceral composition of the coal affects the gas
        storage capacity; different coal macerals have somewhat different
        chemical compositions and this influences the coal's gas storage
        capacity.

        Actual measures from wells drilled for that purpose will be needed to
        determine the actual site specific capacity. However, once this is
        done, the actual test results can be used to calibrate the Kim
        Equation values in order to obtain a set of field-wide gas content
        values suitable for resource estimation."

    2.  The concurrent financing by way of the proposed brokered private
        placement, with Union Securities Ltd. acting as agent, will be
        increased to $5,000,000, to consist of the sale of 20,000,000 units
        at a price of $0.25 per unit, with each unit to consist of one common
        share of JYW and one-half (1/2) of a non-transferable share purchase
        warrant, with each whole warrant to entitle the holder to purchase
        one additional common share of JYW at a price of $0.50 for a period
        of two years from closing, provided that, in the event the closing
        price of JYW's shares as traded on the TSX Venture Exchange is $1.00
        or greater for a period of 20 consecutive trading days, JYW may give
        notice to the holders of the warrants of an earlier expiry date, in
        which case the warrants would expire 30 calendar days after the
        giving of such notice.

    3.  Mark J. Roth, of Calgary, Alberta, will be appointed a Director and
        the Chief Financial Officer of the "Resulting Issuer" (as defined in
        TSX Venture Exchange Policy 2.4), but will not be appointed its Co-
        Chief Executive Officer.
    

    Trading Halted

    In accordance with Exchange policy, JYW's shares are currently halted
from trading and are expected to remain so until the completion of the
Qualifying Transaction.
    Completion of the Qualifying Transaction is subject to a number of
conditions, including, but not limited to, Exchange acceptance and, if
applicable pursuant to Exchange requirements, majority of the minority
shareholder approval. Where applicable, the transaction cannot close until the
required shareholder approval is obtained. There can be no assurance that the
transaction will be completed as proposed or at all.
    Investors are cautioned that, except as disclosed in the management
information circular or filing statement to be prepared in connection with the
Qualifying Transaction, any information released or received with respect to
the Qualifying Transaction may not be accurate or complete and should not be
relied upon. Trading in the securities of a capital pool company should be
considered highly speculative. The TSX Venture Exchange Inc. has in no way
passed upon the merits of the proposed transaction and has neither approved
nor disapproved the contents of this press release.

    
    On behalf of the Board of Directors

    JYW CAPITAL CORP.

    "Joanne Yan"

    President, Chief Executive Officer,
    Chief Financial Officer and Director
    

    The technical information in this news release has been reviewed and
approved by G.R. Jordan, of Norwest Corporation, a qualified person for the
purposes of NI 51-101. Mr. Jordan is independent from JYW Capital Corp.

    WARNING: This news release may contain forward looking statements based
on assumptions and judgments of management regarding future events or results
that may prove to be inaccurate as a result of exploration and other risk
factors beyond its control, and actual results may differ materially from the
expected results.

    
    NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
    THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
    





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JYW CAPITAL CORP.

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