Discovery Air's Air Tindi Granted Diavik Diamond Mines Contract Extension

YELLOWKNIFE, May 11 /CNW/ - Discovery Air Inc. is pleased to announce that Tli Cho Air, a joint-venture partnership between its subsidiary Air Tindi Ltd. and the Tlicho Investment Corporation, has been granted a one-year contract extension by Diavik Diamond Mines Inc. (DDMI).

This air transportation services contract relates to passenger and cargo service between the mine and Yellowknife primarily utilizing Air Tindi's three Dash 7 aircraft. Gross revenue related to this one-year extension is expected to be approximately $3.5 million.

"To receive an extension of this length at a time when everyone in the diamond mining industry is focused on cost-control and value-added service is a wonderful endorsement of the way we operate," said Peter Arychuk, President of Air Tindi. "The flexibility of our Dash 7s coupled with our overall customer focus translates into great value for the clients we serve, including Diavik."

DDMI is a proven leader in safety and Discovery Air is pleased to work with a true partner that clearly states, "If it can't be done safely, it will not be done at Diavik." Arychuk said this approach unmistakably sets a high standard that is unprecedented in any industry and a great example for all Northern contractors and employees to follow. Air Tindi's ongoing commitment to safety across all aspects of its operation was a key factor in negotiating the extension, he added.

Tli Cho Air has been serving the Diavik site since the initial discovery of diamonds at Lac de Gras and all involved look forward to continuing that relationship long into the future.

"Our contract with DDMI through Tli Cho Air has created jobs for people in our communities," said Alex Nitsiza, Chairperson of the Tlicho Investment Corporation. "It has also helped underscore the importance of education and healthy lifestyles for our young people who hope to build careers that won't require them to move away from the land and traditions we all hold so dear."

ABOUT DISCOVERY AIR AND ITS SUBSIDIARIES

Founded in 2004, Discovery Air Inc. is a specialty aviation services company operating across Canada and in select locations internationally. With 145 aircraft, it is one of the largest air operators in Canada, employing 450 flight crew, maintainers and support staff to deliver a variety of air transport and logistics solutions to a wide range of government and business customers. The Company's Government Services segment includes two subsidiaries: Top Aces Inc., which delivers airborne training and special mission services to the Canadian military; and Hicks & Lawrence, a primary supplier of airborne fire management services to the Ontario government and charter services to government agencies and corporate customers. The Company's Northern Services segment includes three subsidiaries: Great Slave Helicopters, the second-largest VFR helicopter operator in the country; Air Tindi, a fixed-wing aircraft charter provider primarily based in Northern Canada; and Discovery Mining Services, which constructs and rents all-weather exploration camps and provides expediting and logistical support services.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements relating to the future performance of the Company and/or its subsidiaries. As with any forward-looking statement, and specifically those concerning future performance and revenue, these are subject to risk and uncertainty, thus actual results may differ materially over time. Consequently, readers should not place any undue reliance on such statements. These forward-looking statements also relate to the date on which they were released and the company disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise unless required to do so by law.

Discovery Air's shares and debentures trade on the Toronto Stock Exchange (Symbols DA.A and DA.DB respectively).

For further information: Media Relations: John Curran, Marketing Manager, Discovery Air - Northern Services, [email protected], [phone]; Investor Relations: Sheila Venman, Investor Relations, [email protected], Toll Free [phone]; or Rolf S. Dawson, Vice President, Corporate Finance & Administration, [email protected], [phone], Ext. 304