Discovery Air Inc. ("Discovery Air") (TSX:DA.DB.A) and Clairvest Group Inc. ("Clairvest") (TSX:CVG) announced today that affiliates of Clairvest have exercised (i) the pre-existing optional conversion feature pursuant to the terms of outstanding credit facilities between, among others, affiliates of Clairvest, Discovery Air and Discovery Air Defence Services Inc. ("DA Defence") to convert amounts outstanding under such credit facilities to common shares of DA Defence and (ii) the swap option pursuant to a letter agreement between Discovery Air, DA Defence and affiliates of Clairvest, to exchange senior secured convertible debentures of Discovery Air for common shares of DA Defence (collectively, the "Conversion Transaction").

Following the completion of the Conversion Transaction, Discovery Air will have approximately $60 million less of secured debt and will continue to own 26% of DA Defence. The future capital required to finance the upgrade of DA Defence's aircraft pursuant to its obligations on the recently awarded contract with the Canadian government will be raised at the DA Defence level and will not increase debt levels at Discovery Air.

For more information regarding the Conversion Transaction, please refer to previous disclosures from Discovery Air, all of which can be found on SEDAR at