Kingsway International Holdings Limited Announces Private Placement Offering of Common Shares for Proceeds of up to US$8,000,000 and Initial Portfolio Investments


    HONG KONG, Sept. 11 /CNW/ - Kingsway International Holdings Limited (TSX:
KIH) (the "Company"), an Asian based financial services firm, announces:

    -   a private placement offering ("Offering") of common shares at a
        subscription price of C$0.55 per common share for proceeds of up to

    -   the acquisition of a 9.9% interest in Macarthur Minerals Limited, an
        Australian exploration and development company whose ordinary shares
        are traded on the TSX Venture Exchange ("Macarthur Minerals");

    -   the acquisition of a 14% interest in TCA Fund, L.P., an investment
        vehicle engaged in the acquisition of high-end automotive dealerships
        in southern China ("TCA"); and

    -   the acquisition of a 10% interest in TCA Management Limited, the
        general partner of TCA (the "Manager").

    Private Placement

    The Company is announcing its Offering of common shares at a subscription
price of C$0.55 per common share for proceeds of up to US$8,000,000. The
proceeds from the Offering will be used for investment purposes and general
working capital. The Company is actively engaged in further investment
activity in the natural resources sector, with a particular focus on the
mining and energy sectors. The completion of the Offering is subject to TSX
    The Company's principal shareholder, Sun Wah Group of Hong Kong has
confirmed that they will subscribe for US$4,000,000 of the Offering.

    Initial Portfolio Investments

    Consistent with the Company's previously announced creation of a
Strategic Investments Group, the Company is pleased to announce investments in
sectors where it believes it can add value through participation with its
investees. The Strategic Investments Group is focused on China's burgeoning
need for natural resources and the continuing growth of the Chinese consumer
    The Company has acquired 9.9% of the outstanding ordinary shares of
Macarthur Minerals. Macarthur Minerals is exploring an iron ore deposit in
South Western Australia and has recently announced an increased inferred
mineral resource estimate for its Moonshine magnetite iron ore project. The
investment meets the criteria established by the Company, being a natural
resource investment focused on the Chinese market.
    The Company has also acquired a 14% interest in TCA, a structured
investment vehicle engaged in the acquisition of high-end automotive
dealerships throughout southern China. The Company believes that high-end
automotives is a high growth sector of the Chinese economy. The 14% interest
in TCA and the 10% interest in the Manager couples a unique investment
opportunity in a high growth market with an investment with an experienced
fund management group extending the Company's interests in the financial
services sector.

    About Kingsway International Holdings Limited

    The Company is listed on the Toronto Stock Exchange (TSX) under the
symbol KIH. The Company and its subsidiaries (the "Group"), are a middle tier
financial services provider, linking the global investment community with
China's high growth economy. In addition to engaging in proprietary investment
activities, the Group offers a variety of complementary, client-focused
services through its capital markets and asset management divisions.
    Founded in 1990, the Group operates from offices in Hong Kong, Beijing,
Shanghai, Shenzhen and Toronto.

    Forward-Looking Statements

    This press release contains forward-looking statements that are based on
the beliefs of Management and reflect the Company's current expectations. In
certain cases, forward-looking information can be identified by the use of
words such as "estimate", "project", "belief", "anticipate", "intend",
"expect", "plan", "predict", "may", "should", "will," or variations of such
words and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking information contained in this press release include
information relating to the private placement offering of common shares, the
terms and use of proceeds of the Offering, the subscription by the Sun Wah
Group under the Offering and information relating to investments by the
Company in Macarthur Minerals Limited and TCA Fund, L.P.. Forward-looking
information involves known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking information. There can be no assurance that
forward-looking information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements. Material factors or risks which could cause actual results or
events to differ materially from a conclusion in such forward-looking
information include the risks that the Company may not be able to complete the
Offering or the Offering may be completed on different terms and conditions;
the Offering may be subject to shareholder approval and such approval may not
be obtained; the Company may not be able to obtain the necessary regulatory
approvals or such approvals may be subject to conditions that are
unacceptable; the proceeds of the Offering may be used for other purposes; Sun
Wah Group may not subscribe or complete its subscription; risks related to
doing business in China, including foreign exchange risks, political, economic
and social risks, and risks relating to the Chinese legal system; risks
relating to competition, investment market uncertainty, dependence on key
personnel, employee malpractice, regulation, country and political risks;
risks relating to war, terrorist attacks and political tensions; risks
associated with expansion into international markets, inability to implement
adequate system of controls to manage future growth, impact of health hazards,
and ownership and operation of real estate properties. The Company cautions
that the foregoing list of material factors is not exhaustive and is subject
to change. For additional information with respect to certain of these and
other factors, refer to the risk factors section of the Company's management's
discussion and analysis dated May 15, 2009 for the period ended March 31, 2009
filed with the Canadian securities regulators, which is available on SEDAR at The forward-looking information contained in this press release
represents the expectations of the Company as of the date of this press
release and, accordingly, is subject to change after such date. Readers should
not place undue importance on forward-looking information and should not rely
upon this information as of any other date. While the Company may elect to, it
does not undertake to update this information at any particular time, except
as required by law.

For further information:

For further information: Gary Quedado, Kingsway Group, (416) 861-3099
Ext. 238,

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