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GrowthWorks Canadian Fund Ltd. Provides Update on Claims Process, Investment Advisory Agreement and Issues Default Status Report Pursuant to National Policy 12-203

TORONTO, April 9, 2014 /CNW/ - GrowthWorks Canadian Fund Ltd. (the "Fund"), which previously announced that it obtained orders of the Ontario Superior Court of Justice (the "Court") granting it creditor protection pursuant to the Companies' Creditors Arrangement Act (Canada) ("CCAA") until and including April 10, 2014, today announced that it has obtained an order of the Court (the "Stay Extension Order") to further extend the "Stay Period" until and including May 9, 2014. The Stay Extension Order continues and extends the stay of proceedings, which has stayed certain creditor claims and the exercise of contractual rights against the Fund.

On January 9, 2014, the Fund announced that it had obtained an order setting out a process for identifying, assessing and determining claims against the Fund (the "Claims Order"). The Claims Bar Date prescribed in the Claims Order was March 6, 2014 (the "Claims Bar Date"). On or about the Claims Bar Date, FTI Consulting Canada Inc., in its capacity as Court-appointed monitor in the CCAA proceedings (the "Monitor") received a variety of claims, including claims filed by the former manager of the Fund and shareholders of the Fund.

The Fund announced today that the Monitor has indicated in its Seventh Report dated April 3, 2014 (available on the Monitor's website at http://cfcanada.fticonsulting.com/GCFL/) that, on or about the Claims Bar Date, the Monitor received approximately 255 claims totalling in excess of $725 million.  The total claims submitted to the Monitor include duplicative claims filed against the Fund and its directors and officers, various market and/or contingent claims and claims filed by shareholders of the Fund.  Despite the passing of the Claims Bar Date, the Monitor continues to receive claims filed by shareholders in respect of their share holdings.  The Monitor has also indicated that it does not anticipate responding to or adjudicating disputed claims until such time as Roseway Capital S.a.r.l. ("Roseway"), the Fund's only secured creditor, is paid in full and there are, or are likely to be, remaining funds for distribution to unsecured creditors, if any, of the Fund.  Pursuant to an order of the Court authorizing the Fund to make distributions to Roseway, the Fund has, with the consent of the Monitor, reduced its obligations to Roseway to $19.6 million as of April 4, 2014. Outstanding amounts owing by the Fund to Roseway continue to bear interest at a rate of 20% per annum.

The Fund announced today that it is engaged in ongoing discussions with Roseway with respect to the possible retention of Roseway to act as an investment advisor to the Fund, managing the orderly disposition of the Fund's investment assets in exchange for certain fees. Any proposed advisory agreement between the Fund and Roseway would be subject to Court approval.

The Fund is also providing a default status report in accordance with the alternative information guidelines set out in National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203").  On December 3, 2013, the Fund announced (the "Default Announcement") that it did not file its audited annual financial statements and related management report of fund performance for the year ended August 31, 2013 under National Instrument 81-106 Investment Fund Continuous Disclosure (collectively, the "Financial Documents") or an annual information form by November 29, 2013, the deadline prescribed by applicable securities legislation.  There have been no material changes to the information contained in the Default Announcement or any other changes required to be disclosed under NP 12-203.  The Fund still intends to file the Financial Documents and other applicable continuous disclosure documents as soon as is commercially reasonable, or as required by the Court pursuant to the Fund's CCAA Proceedings.

Forward-Looking Information

This press release contains forward looking statements, including statements with respect to the CCAA Proceedings. These forward-looking statements reflect the Fund's current views and are based on certain assumptions, including assumptions as to future operating conditions and courses of action, sale or refinancing alternatives, economic conditions and other factors the Fund believes are appropriate. Such forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in these statements, including the risk that the Fund is unable to reach agreement with Roseway upon an asset management and realization plan on terms that are acceptable to the Fund and, as a result, Roseway seeks to pursue remedies against the Fund, including the appointment of a receiver for the Fund's assets and a winding up of the Fund; the risk that any disposition of the Fund's assets may not yield proceeds sufficient to satisfy in full the Fund's payment obligations to Roseway Capital S.a.r.l., the Fund's other creditors or any distribution to the Fund's shareholders; the risk that litigation or defence proceedings involving claims by the former manager of the Fund or other third parties against the Fund may involve substantial expense and, if successful, could require the Fund to pay substantial damages; and those risks and uncertainties disclosed in the Fund's most recently filed prospectus and other regulatory filings posted on SEDAR at www.sedar.com.  These risks and uncertainties may cause actual results, events or developments to be materially different from those expressed or implied by such forward-looking statements.  Unless required by law, the Fund does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or results or other factors.

SOURCE GrowthWorks Canadian Fund Ltd.

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