Flagship advised of early warning report by Frank Giustra

TRADING SYMBOL: TSX-V: FII

VANCOUVER, July 23 /CNW/ - Flagship Industries Inc., (FII: TSX-V) ("Flagship") has been advised by Frank Giustra (the offeror) that he has acquired 5,150,000 common shares of Flagship Industries Inc. ("Flagship") by way of a private transaction, representing approximately 4.50% of the issued and outstanding common shares of Flagship (the "Acquisition").

Prior to the Acquisition, Fiore Capital Corporation, Fiore Aviation Corporation both companies indirectly owned by Mr. Giustra and The Radcliffe Foundation ("Radcliffe"), a charitable organization controlled by Mr. Giustra held a total of 13,530,000 common shares and options belonging to Radcliffe to acquire 2,000,000 common shares. After giving effect to the Acquisition, the Offeror holds 18,680,000 common shares, representing approximately 16.31% of the issued and outstanding common shares of Flagship. Assuming exercise of the 2,000,000 Radcliffe options controlled by the Offeror, the Offeror would have beneficial ownership or control over a total of 20,680,000 common shares representing 17.75% on a partially diluted basis.

The securities were acquired for investment purposes. While the offeror does not intend to acquire further securities of Flagship at this time, he may in the future acquire or dispose of securities of Flagship, through the market or otherwise, as circumstances or market conditions warrant.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

For further information: Gordon Keep, President and Director, [phone]