Cervus Equipment Corporation Announces Non-Binding Letter of Intent to Acquire Interest in Australia's Windmill Agricultural Unit Trust

Symbol: CVL (TSX)

CALGARY, June 14, 2012 /CNW/ - Cervus Equipment Corporation ("Cervus") (TSX: CVL) today announced that it has signed a non-binding letter of intent (LOI) that sets forth the basic preliminary terms of Cervus' purchase of a minority interest in Windmill Agricultural Unit Trust ("Windmill"). It is proposed that Cervus will acquire a 30% interest in the net operating assets of Windmill, including the real property currently occupied and owned by Windmill, following negotiations regarding the specific assets to be purchased, and the amounts to be paid by Cervus.

"Cervus aims to grow sustainably and expand its operations through the diligent acquisition of complementary businesses," said Graham Drake, President and CEO of Cervus Equipment Corporation. "The signing of this LOI represents an opportunity to expand our market reach to Australia, a region with a booming agricultural market."

The assets under consideration include four John Deere agricultural equipment dealerships in Hamilton, Terang, Leongatha South and Ballarat.

Reader Advisory

The purchase is subject to, among other things, the negotiation and execution of a definitive binding agreement, approval of the board of directors of Cervus, the completion of due diligence activities, and the successful conversion of Windmill to a corporation. There can be no assurance that these conditions precedent, or any other conditions precedent, will be satisfied. Further, there can be no assurance that the proposed transaction will be completed as proposed or at all. Cervus anticipates closing of the proposed transaction in the third quarter of 2012, assuming all agreements and approvals are in place.

About Cervus

Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships in Western Canada through 35 dealership locations primarily in Alberta, Saskatchewan and Manitoba. Cervus holds an approximate 60% equity interest in Agriturf Limited, a New Zealand-based corporation that offers authorized John Deere equipment, parts and service in the Manawatu, Rotorua, Hawke's Bay and Taranaki regions. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick, Nissan and Doosan material handling equipment; and Peterbilt transportation equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CVL".

Forward Looking Information

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning Cervus' intentions to acquire Windmill Agricultural Unit Trust. The forward-looking statements and information are based on certain key expectations and assumptions made by Cervus, including expectations and assumptions concerning ability to obtain the various approvals required. Although Cervus believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Cervus can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, results of the due diligence review on the businesses proposed to be acquired by Cervus being less than satisfactory, the parties being unable to negotiate the final terms and conditions of the definitive documentation required for the transaction, and Cervus being unable to obtain any required approvals. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Cervus undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

Graham Drake - CEO
of Cervus Equipment Corporation
Telephone: [phone]
Fax: [phone]
Email: [email protected]

Randy Muth - Chief Financial Officer
of Cervus Equipment Corporation
Telephone: [phone]
Fax: [phone]
Email: [email protected]