Discovery Air's Great Slave Helicopters Expands to Peru

YELLOWKNIFE, May 3 /CNW/ - Discovery Air Inc. is pleased to announce that its subsidiary, Great Slave Helicopters (GSH), has extended its reach into South America through a one-year Master Service Agreement signed May 3 in support of ongoing oil and gas seismic exploration activity with South American Exploration LLC's Peruvian operations.

An initial high-utilization, through this Agreement is now underway and will keep five medium and intermediate Bell 212 and AS 350 helicopters active in north-eastern Peru for a minimum of six months with more work expected to immediately follow. Total gross revenue related to the first project alone is expected to surpass US$5.4 million.

"We are very pleased with this opportunity to diversify GSH's revenue by tapping into the thriving Latin American oil and gas market as we build on our experience providing safe, efficient airborne seismic services to the oil and gas industry," said Jeff Denomme, President of GSH.

As part of its Master Service Agreement, GSH has partnered with local helicopter operator Helisafe SAC allowing it to expedite the necessary government approval and licensing process. Leveraging the experience and credibility of Helisafe was key to initiating flight operations quickly and efficiently in Peru, and GSH looks forward to continuing to expand operations in the region with Helisafe, he added.

"While this initial agreement relates specifically to Peru, our team is focused on growing our reach further into other lucrative South American markets where our proven expertise supporting mineral, oil and gas explorers in remote operating environments for more than a quarter-century is very much in demand," said Denomme.

"This is an important win for GSH in particular, as well as for Discovery Air," said Dave Jennings, President and CEO of Discovery Air Inc. "It aligns very well with several main objectives in our strategic plan, including employing assets where they will generate the maximum benefit for shareholders, and continuing to diversify our business outside of traditional markets. We also believe this opportunity positions us well to explore additional opportunities for the Discovery Air group of companies in the region."

ABOUT DISCOVERY AIR AND ITS SUBSIDIARIES

Discovery Air Inc., founded in 2004, 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 logistical solutions to a wide range of government and business customers. The Company's Government Services segment includes two subsidiaries. Top Aces Inc. delivers airborne training and special mission services to the Canadian military. Hicks & Lawrence is a primary supplier of airborne fire management services to the Ontario government, and provides charter services to government agencies and corporate customers throughout Northern Ontario and Eastern Manitoba. The Company's Northern Services segment includes three companies. Great Slave Helicopters, the second-largest VFR helicopter operator in the country, has bases throughout Northern Canada from which it operates support flights for mining and oil/gas seismic and exploration work, forest fire suppression, aerial construction and precision external load applications, and environmental impact surveys. Air Tindi utilizes a varied fleet of fixed-wing aircraft to provide vital air ambulance services, and to operate both scheduled and charter cargo and passenger flights to remote areas of Northern Canada. And Discovery Mining Services 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: Sheila Venman, Investor Relations - Discovery Air, [email protected], Toll Free [phone]; or John Curran, Marketing Manager - Northern Business Services, Discovery Air, [email protected], [phone]