Avcorp enters into $6,000,000 loan agreement with Panta

Avcorp Industries Inc. ("AVP" or the "Company") today announced that it has entered into an extension to its banking agreement, which will provide the Company’s operating lines of credit through to April 2012. In conjunction with the renewal of the operating lines of credit agreement, the Company has entered into a $6,000,000 principal amount, 10% secured term loan agreement with Panta III B.V. (a wholly-owned subsidiary of Panta Holdings B.V., a private investment vehicle, the principal of which is Mr. Jaap Rosen Jacobson, a director and controlling shareholder of the Company) ("Panta"). The term loan contains a conversion right to convert all or any portion of the principal amount of the Term Loan as elected by Panta, at a conversion price of $0.07 per Common Share, into up to 85,714,286 Common Shares (the "Term Loan"). The Term Loan may be converted on or before the date which is 60 months from the date of advance of the Term Loan. Interest on the Term Loan is not convertible. The proceeds of the Term Loan will provide the Company with further financial operational flexibility to carry out the Company’s business plan, the proceeds to be used specifically for the reduction of the Company’s operating facility.