At A Critical Point

Brampton Brick Announces Subordinated Debenture Financing

Market Wire, February, 2010

Brampton Brick Limited (TSX: BBL.A) announced today that the Company’s Board of Directors has approved the issuance of subordinated secured debentures in the amount of approximately $9.0 million. The debentures will have a three year term and are to be secured by a second ranking security interest in the Company’s real estate and production equipment utilized in the Masonry Products and Landscape Products business segments in Ontario.

The rate of interest for the debentures is fixed at 10%. In addition, the Company will pay an up-front fee of 2% to subscribers. Proceeds of the new financing will be utilized for general corporate purposes.

In connection with this transaction, parties, including a Director of the Company, holding an indirect interest in approximately $1.1 million of the proceeds of the $3.0 million promissory note payable, which was due but not paid on December 7, 2009, are expected to subscribe for an equal or greater principal amount of the debenture issue. The remaining parties, holding an indirect interest in approximately $1.9 million, and who include a Director of the Company, have agreed to accept a new unsecured promissory note with identical terms and conditions as the existing promissory note, except that the new promissory note will be due and payable in full on September 30, 2010.

All of the transactions will close concurrently, with closing expected to occur not later than February 26, 2010.

Substantially all of the debentures are to be acquired by insiders of the Company or by persons associated with or related to them. Both the debenture issuance and the $1.9 million loan transaction will each be a “related party transaction” for the purposes of Ontario Securities Commission Rule 61-501 and Policy Q-27 of the Autorite des marches financiers du Quebec
brampton real estate