Discovery Air signs letter of intent to purchase Discovery Mining

    LONDON, ON, Sept. 25 /CNW/ - David Taylor, Chairman & C.E.O. of Discovery
Air Inc. (TSX: DA.A), is pleased to announce that the company has entered into
a letter of intent with the shareholders of Discovery Mining Services Ltd.
("DMS") to purchase all of the issued and outstanding shares of DMS in
exchange for $5 million cash and 5 million common shares of Discovery Air. Of
the cash amount, $3 million will be financed from working capital and the
balance will be financed by a note payable. Completion of the transaction is
subject to due diligence, receipt of regulatory approvals, and entering into a
definitive purchase and sale agreement with the shareholders of DMS. It is
expected that the acquisition will be completed in November 2007.
    DMS is a leading provider of remote exploration camps, expediting,
logistics and staking services to a broad spectrum of gold, base metal,
uranium and diamond exploration companies operating in the Northwest
Territories, Nunavut, Northern Alberta and Northern Saskatchewan. The
company's head office is located in Yellowknife, NWT.
    DMS provides a broad spectrum of services to some of the largest
exploration companies in the world which support operations in some of the
most remote locations in the country. As a result, DMS is a high volume user
of both fixed and rotary wing air transportation services, moving
11,725,000 lbs of freight via 1,229 flights throughout the Arctic and Northern
Canada in 2006. On an annual basis, DMS is expected to contribute revenues of
approximately $6 million and its EBITDA margin is expected to be in line with
the EBITDA margins recorded by Discovery Air's other businesses.
    Mr. Taylor stated, "Discovery Mining is a wonderful fit for Discovery
Air's business alliance, in that the company highly utilizes the services of
two of our current subsidiaries, Great Slave Helicopters and Air Tindi, in
support of their current business. Additionally, Discovery Mining's experience
with and comprehensive knowledge of the mining sector will provide Discovery
Air's air operator subsidiaries with enhanced visibility in the provision of
safe, economical, and efficient air transportation solutions to gold, base
metal, uranium, and diamond exploration projects.
    Mr. Rod Brown, President of DMS, commented, "We look forward to
leveraging the improved access we will gain to Discovery Air's air
transportation infrastructure to assist us in continuing to provide high-value
turn-key solutions to our expanding customer base. We feel that joining forces
with Discovery Air will provide us with the financial, operational, and
administrative resources we require to potentially expand our current service

    Discovery Air's mission is to build shareholder value by creating an
alliance of profitable aviation businesses that can realize synergies,
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) 913-2204, ext. 358, Toll-free: (866) 903-3247, ext. 358, E-mail:

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