Kingsmill Capital Ventures Inc. announces update on Qualifying Transaction



    TORONTO, Dec. 20 /CNW/ - Kingsmill Capital Ventures Inc. ("KCV")
(KCV.P-TSX VENTURE) is pleased to provide an update on the status of its
Qualifying Transaction ("QT") announced on August 8, 2007. KCV has entered
into an arm's length agreement in principal with Universal Settlements
International Inc. ("USI") to acquire a portfolio of life settlements in
exchange for common shares of KCV. Please see the press release of August 8,
2007 for further details. It can be accessed at www.sedar.com.
    After discussions with the TSX Venture Exchange, KCV's legal counsel and
Agent, Jones, Gable & Company Limited ("JG") and its counsel, it was
determined that the preparation and filing of a prospectus was the most
appropriate method for providing disclosure on this transaction. Although a
lengthy and detailed process, a prospectus will provide shareholders and
investors with a better understanding of the initial business opportunity and
provide a solid foundation for current and future fund raising efforts by KCV.
The directors of KCV along with its counsel, auditors and USI have been
working diligently over the last months to complete the prospectus and related
documents. The Company anticipates filing a preliminary prospectus in January.
    As described in its news release of August 8, 2007, KCV intends to
complete an offering of KCV shares for aggregate net proceeds of not less than
C$2,000,000 which shall be closed concurrent with the closing of the QT. The
proceeds from this issuance of KCV shares are intended to be used for working
capital and general corporate purposes, including premium payments and policy
administration. At this time, it is expected that the securities to be issued
will be priced at the QT price of C$0.30 per share.
    Since August 8th, 2007 there have been several positive industry
developments.

    
    Among the industry highlights:

    -   July 2007 - Life Settlements Top $12 Billion in record year
        (2006).(1)
    -   The Institutional Life Markets Association was created to lobby for
        the industry. Members include Goldman Sachs Inc, Credit Suisse Group
        and Bear Stearns Cos.(2)
    -   November 2007 - Dutch pension provider Cordares makes first
        investment in the life settlements market. Cordares manages
        26.5 billion Euros for 5 Dutch pensions.(3)
    -   December 2007 - At the 18th annual Executive Conference for the Life
        Insurance Industry it was reported that 60% of insurance executives
        predicted that the secondary market for life insurance would
        experience significant growth in the next five years.(4)
    -   December 2007 - The Goldman Sachs Group announces that it has
        launched the first index that will allow market participants to
        measure, manage and trade exposure to longevity and mortality risks
        in a standardized, transparent, and real time manner.(5)
    

    The directors and management of KCV remain committed this transaction. We
would like to thank our shareholders for your continued support and patience
and we will endeavor to continue to move forward towards completion of the
transaction in a timely manner.

    Completion of the transaction is subject to a number of conditions,
including but not limited to, Exchange acceptance. There can be no assurance
that the transaction will be completed as proposed or at all.
    Jones, Gable & Company Limited, subject to completion of satisfactory due
diligence and the satisfaction of certain other conditions, has agreed to act
as agent, on a commercially reasonable efforts basis, in connection with the
transaction. This agency relationship should not be construed as any assurance
with respect to the merits of the transaction or the likelihood of completion.
    Investors are cautioned that, except as disclosed in the management
information circular or filing statement to be prepared in connection with the
transaction, any information released or received with respect to the
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.

    
    (1) Journal of Structured Finance - Summer 2007
    (2) Wall Street Journal Online - November 26, 2007
    (3) Life Exchange - November 13, 2007
    (4) InsuranceNewsNet - December 14, 2007
    (5) Goldman Sachs News Release - December 14, 2007
    

    %SEDAR: 00023990E




For further information:

For further information: David Mitchell, President, by email:
info@kingsmillcapital.com or phone: (416) 534-9996 ext. 101

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KINGSMILL CAPITAL VENTURES INC.

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