CYMAT Completes First $400,000 Tranche of Proposed $1.25 Million Private Placement Financing

Listing: TSX
Symbol: CYM

TORONTO, May 3, 2012 /CNW/ - Cymat Technologies Ltd. ("Cymat" or the "Company") today announced that it completed the first $400,000 tranche of a proposed financing of up to $1.25 million to be raised through a non-brokered private placement (the "Private Placement", or "Placement").  The Company expects to complete the financing in a number of tranches by May 15, 2012.  The Private Placement will consist of the issuance and sale of Preferred Units, Units and Subscription Receipts at a price of $0.05 per Preferred Unit/Unit/Subscription Receipt.  Each Preferred Unit consists of one common share and one common share purchase warrant (the "Warrant").  Each Unit consists of one common share and one half of a Warrant.  Each Subscription Receipt will become a Unit upon approval by the Company's shareholders of the issuance of the securities underlying the Units.  Each whole Warrant entitles the holder to purchase one common share of the Company at a price of $0.10 per share for the period from the date of issuance until May 15, 2015.

In connection with the Private Placement, the Company may pay a finder's fee to individuals or firms assisting in the financing.  The finder's fee would consist of a cash payment equal to 5% of the related proceeds and broker warrants ("Broker Warrants") equal to 5% of the aggregate number of related Preferred Units, Units and Subscription Receipts issued.  Each Broker Warrant entitles the holder to purchase one common share of the Company at a price of $0.10 per share for the period from the date of issuance until May 15, 2015.

The aggregate number of securities underlying the combined issuance of the Preferred Units, the Units and the Broker Warrants (if any) may not exceed 25% of the Company's currently issued and outstanding common share balance of 113,398,276 shares; Subscription Receipts will make up the balance of the Placement.  The proceeds from the issue of Subscription Receipts will be held in escrow pending shareholder approval of the issuance of the Units underlying the Subscription Receipts.  Upon obtaining such shareholder approval, the Subscription Receipts will be deemed to be immediately exercised and the net proceeds from the sale of Subscription Receipts plus certain escrowed amounts will be paid to the Company. If shareholder approval is not obtained within the specified period, the gross proceeds attributable to the issue of Subscription Receipts, together with accrued interest, will be refunded to subscribers. Cymat intends to seek shareholder approval as soon as practicable.

Proceeds from this financing will provide general working capital and facilitate the Company's plans to expand its network of architectural agents for Alusion^TM, and increase its international market for SmartMetal^TM, in military and automotive applications.

On May 3, 2012, the Company closed the first tranche of the Private Placement, with the sale and issuance of 8,000,000 Preferred Units at a price of $0.05 per Preferred Unit for gross proceeds of $400,000.  In order to encourage expedited participation in this first tranche, the Preferred Units were issued with a full Warrant.  Insider participation amounted to $65,000.  Finder's fees in the amount of $2,750 and 55,000 Broker Warrants are issuable with respect to this first tranche.

About Cymat:

Cymat develops innovative materials for industry. The company has worldwide rights, through patents and licenses, for producing Stabilized Aluminum Foam. The ultra-light metallic foam is manufactured by bubbling gas through molten alloyed aluminum containing a dispersion of fine ceramic particles and can be produced as either Near-net Shapes or Flat Panels. The result is a revolutionary material with a wide array of features including very low density, mechanical energy absorption, thermal and acoustic insulation, is recyclable, time and temperature insensitive and has a relatively low cost of production. Cymat is collaborating with a number of partners spanning the architectural, blast mitigation and automotive industries. For further information, visit the Web site www.cymat.com.

The foregoing press release contains forward-looking statements relating to the development of markets, development programs, future revenues and improvements in technology, which are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include the availability of funding, existing and future relationships with suppliers and manufacturers, the results of research and development activities, risks of technological breakthroughs that make Cymat stabilized aluminum foam less attractive, risks relating to the breadth, scope and enforceability of intellectual property rights, general industry and market conditions, availability of qualified personnel, and reliance on co-development partners. For additional information with respect to these and other factors, see the reports filed by Cymat Technologies Ltd. with the Ontario Securities Commission. Cymat disclaims any intention or obligation to update or revise any forward-looking statements.

Investors and Media:
Michael Liik
Executive Chairman
Cymat Technologies Ltd.
Tel: [phone]
Email: [email protected]