News Release

For Immediate Release
August 23, 2007

CAPE BRETON CASTING INC.   UPDATE

Sydney, N.S. – Further to the on-going efforts to negotiate a sale for the assets of Cape Breton Casting Inc. (CBCI), the Cape Breton Growth Fund (CBGF) today announced that it has agreed to continue negotiations with a group of local investors who have expressed an interest in purchasing the facility. On August 7, 2007, the local group of investors requested additional time to fully evaluate the operation.

As a result of discussions, the CBGF has agreed to work with the investors for a period of up to three months, thereby allowing them time to conclude their analysis of the CBCI operation. A joint management committee has been established which includes representatives from CBCI, the CBGF and the investors’ group. The committee will oversee the operation, meeting weekly in an effort to facilitate change at the plant and to improve operations. In addition, a new interim general manager will be hired for the three month period.

“Both the CBGF and the local investors’ group are committed to working cooperatively during this interim period. We remain hopeful that a final agreement can be ratified in the coming months,” said Marlene Usher, Acting CEO of Enterprise Cape Breton Corporation. “CBCI employees are to be commended for their hard work and perseverance during this period of uncertainty. We know that we can count on their continued cooperation as we try to conclude a sale for the facility.”

CBCI, located in the Northside Industrial Park, was established in 2004 to provide die casting services to the automotive industry. The project received $24.7 million of repayable assistance from the CBGF, the Atlantic Canada Opportunities Agency (ACOA) and ECBC. The CBGF took control of the plant in March 2006, when the project proponents encountered difficulty and surrendered their shares.

As a result of a public call for proposals for the sale of the assets in April 2007, a local group of investors expressed interest in purchasing the facility. Despite ongoing negotiations, the two parties have not yet been able to conclude a final purchase and sale agreement.

CBCI continues to operate, employing approximately 60 people.

Enterprise Cape Breton Corporation offers programs in support of economic development initiatives and is responsible for delivering ACOA’s programs in Cape Breton and in the Mulgrave area.

For more information:

D.A. Landry
ECBC Communications
902-564-3617