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DealNet Capital Corp. Closes First Tranche of the Debenture Offering

TORONTO, ONTARIO--(Marketwire - Jan 14, 2013) - DealNet Capital Corp. (the "Company") (CNSX:DLS)(GAIMF) is pleased to announce it has closed a first tranche of the non-brokered offering of convertible unsecured debentures ("debentures") for aggregate gross proceeds of $500,000. All securities issued in connection to the debentures are subject to a four-month hold period from the date of closing. The Company originally announced its intention to raise up to $1,500,000 of the debentures on November 14, 2012 and is continuing towards raising the full amount.

"We are very pleased with the initial response that we have received from the investment community with regards to the convertible debenture offering especially given the holiday season," stated Bob Cariglia, President of DealNet Capital Corp. "We feel that this interest demonstrates investor confidence in our business model and management is confident that we will close further tranches of the debenture offering early in the new year," he added.

The proceeds of the Offering will be used to implement management''s business plan, which includes business development, corporate marketing initiatives, project specific infrastructure and general working capital purposes.

The Debentures will mature on the date that is three (3) years from the date of issuance (if not otherwise converted) and bear interest at a rate of 12% per annum, which shall be paid quarterly in arrears. The Debentures shall be convertible into common shares of the Company ("Common Shares") at a conversion rate of $0.20 per share at any time prior to the earlier of the maturity date or the redemption date. The Company will have the right to redeem the Debentures, in whole or in part, from time to time, at a redemption price equal to the unpaid principal amount of the Debentures to be redeemed. If the market price of the Company''s common stock is less than 125% of the conversion price, then if redeemed in the first year following the Closing Date, the redemption price will be equal to 125% of the unpaid principal amount of the Debentures to be redeemed, plus accrued and unpaid interest thereon, dropping to 110% in the second year and 100% in third year of the Debentures.

DealNet Capital Corp. is a public company that trades under the symbol DLS on the Canadian National Stock Exchange and under the symbol GAIMF on the Pink Sheets of the Over the Counter Bulletin Board. In general, the Company is a merchant banking company that has a flexible investment mandate with a strategic focus on recurring revenue businesses. The company has recently focused its investments towards the thriving North American Business Process Outsourcing (BPO) Market as well as the Consumer Financing Market by leveraging its recently acquired BPO division. The Company continues to look for acquisition opportunities in these key markets in order to continue to drive competitive advantages and growth.


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Forward-looking Statements

This press release contains certain forward-looking statements with respect to the Corporation. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect. These statements involve risks and uncertainties including, without limitation, DealNet''s ability to successfully develop and market its products, consumer acceptance of such products, competitive pressures relating to price reductions, new product introductions by third parties, technological innovations, and overall market conditions. Consequently, actual events and results in future periods may differ materially from those currently expected.