On January 13, 2012, Concordia Resource Corp. (TSX-V: CCN) (Concordia) completed its acquisition of all of the issued and outstanding securities of Swala Resources Inc. ("Swala") pursuant to a court approved plan of arrangement (the "Arrangement").

Pursuant to the terms of the Arrangement, each shareholder of Swala received 1.9 common shares of Concordia for each share of Swala held. In addition, warrantholders of Swala who had not exercised their warrants of Swala ("Warrants") prior to the closing of the Arrangement (the "Closing") had their Warrants converted into common share purchase warrants of Concordia ("Concordia Exchange Warrants") in accordance with a warrant exchange ratio of 0.5 Concordia Exchange Warrants for each Warrant held. Furthermore, outstanding Swala options were exercised for Swala shares immediately before the Closing on a cashless, in-the-money value basis, using the 1:1.9 share exchange ratio and unexercised options were cancelled. Pursuant to the Arrangement, Concordia will also issue options to acquire shares of Concordia to certain members of the Swala team.

The combined company has retained the Concordia name and will remain headquartered in Vancouver, Canada. Swala is now a wholly owned subsidiary of Concordia and the shareholders of Swala are now shareholders of Concordia, holding approximately 30% of the issued and outstanding shares of Concordia post-Closing.

Swala was advised on the legal aspects of this transaction by a team of Fasken Martineau lawyers that included John Turner, Krisztián Tóth, Francesco Tallarico, Huy Do and Samuel Rickett.