Winalta Inc. Announces Extension of Forbearance Agreement

CALGARY, Sept. 21 /CNW/ - Winalta Inc. (TSX-V-"WTA.A") announces that it, together with certain of its subsidiaries, Winalta Carlton Homes Inc., Winalta Homes Inc., Winalta Oilfield Rentals Inc., Winalta Construction Inc., Winalta Carriers Inc., Baywood Property Management Inc. and 916830 Alberta Ltd. (collectively "Winalta") have entered into a Third Extended and Amended Forbearance Agreement (the "Amended Forbearance Agreement") with HSBC Bank Canada, Winalta's secured creditor, to extend the period by which it would forbear from enforcing its claim for repayment of indebtedness owed to HSBC by Winalta until October 31, 2010.  As part of the Amended Forbearance Agreement, Winalta's major shareholder, Kos Corp. Investments Inc., a company owned and controlled by Artie Kos, Winalta's President and Chief Executive Officer and a director, has agreed to provide HSBC with a limited secured guarantee of Winalta's obligations owing to HSBC.

The entering into of the Amended Forbearance Agreement will allow Winalta to proceed with preparing a Plan of Arrangement under the Companies' Creditors Arrangement Act (Canada) (the "CCAA").  Winalta anticipates that it will be in a position to file a Plan of Arrangement with the Court of Queen's Bench of Alberta, Judicial Centre of Edmonton (the "Court") shortly.  Winalta will announce the terms of the proposed Plan of Arrangement and the timing of any related creditors' meetings following receipt of the approval of the Court to the Plan of Arrangement.

Winalta also announces that it has completed the $12.3 million sale of the Winalta Acheson manufacturing facility on September 21, 2010.  The proceeds from this transaction will be used and applied to repay secured creditors. Following the completion of this transaction, Austin Fraser, former Vice President Winalta Homes has assumed the role of Senior Vice President, Winalta Inc.

Winalta Inc. is an Oilfield Rentals provider that leases portable industrial accommodations and catering services to the energy sector.

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. 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 release.

Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities legislation, including the timing and continuance of CCAA protection and the completion of transactions related thereto. Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Winalta to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Specifically, some of the material risks include the uncertainty involved in the Court proceedings and the implementation of a Plan under the CCAA.

The forward-looking information contained in this news release represents the expectations of Winalta as at September 21, 2010 and, accordingly, is subject to change after such date. However, Winalta expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

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For further information:

Artie Kos, President and Chief Executive Officer, Phone: [phone], Fax: [phone]; Austin Fraser, Senior Vice President, Phone: [phone], Fax: [phone]