Global Railway Industries Ltd. Receives Claim for Indemnification from Purchaser of CAD Railway Industries Ltd.

    




 Stock Symbol: GBI.H  Listing: NEX  Outstanding Shares: 15.3 Million  Web Site: www.globalrailway.com 

 LACHINE, QUEBEC, Sept. 26, 2012 /CNW/ - Global Railway Industries Ltd. (GBI.H:NEX):  Global Railway Industries Ltd. ("Global") announced today that it has  received notice from the purchaser of Global's former subsidiary, CAD  Railway Industries Ltd. ("CADRI") of claims for indemnification under  the share purchase agreement entered into in respect of the sale of  CADRI in September 2011.  The aggregate amount of the indemnification  claims asserted by the purchaser is approximately $640,000, which  exceeds the $250,000 provision for anticipated indemnification claims  that Global had taken in its financial statements for the first and  second quarters of 2012.  Global has requested additional information  from the purchaser and is in the process of assessing the claims.  Although Global intends, where appropriate, to contest the validity or  amount of the claims, there can be no assurance at this time that  Global will not ultimately be held to be contractually responsible for  the full amount of the indemnity claims. 

 On closing of the CADRI sale, the purchaser paid $1,000,000 of the  purchase price into an escrow account to secure payment of Global's  indemnification obligations.  Under the terms of the share purchase  agreement, the purchaser had one year from the closing date of the  CADRI sale to notify Global of any claims for indemnification.  The  claims described above are the only claims asserted by the purchaser  prior to the first anniversary of the closing date and, accordingly,  Global's maximum liability to the purchaser under the indemnification  provisions of the share purchase agreement is now limited to  approximately $640,000.  This amount has been retained in the escrow  account pending resolution of the claim.  The balance of the funds in  the escrow account of approximately $360,000 have been released to  Global. 

 Forward-Looking Statements:  This press release contains forward-looking information pertaining to  the resolution of indemnity claims asserted against Global.  The  amount, if any, of funds available for distribution to shareholders,  the timing of any future distributions, the amount Global will be  obligated to pay under indemnification claims and the timing of the  resolution of such claims are subject to substantial known and unknown  risks and uncertainties, many of which are beyond Global's control.   Should one or more of these risks or uncertainties materialize, or  should assumptions underlying the forward-looking information prove  incorrect, actual results could vary materially from those expressed or  implied by the forward-looking information.  Accordingly, you should  not place undue reliance on these forward-looking statements.  A  description of risk factors that may cause actual results to differ  materially from forward-looking information can be found under the  caption "Business Risks" in Global's management discussion and analysis  for the three and six months ended June 30, 2012, which has been filed  on the SEDAR website at www.sedar.com.  Any forward-looking statements are made as of the date of this  release and, other than as required by applicable securities laws,  Global does not assume any obligation to update or revise them to  reflect new events or circumstances. 

 About Global Railway Industries:  Global Railway Industries Ltd. is a public company whose shares are  listed for trading on the NEX Board of the TSX Venture Exchange under  the symbol "GBI.H". 

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

Global Railway Industries Ltd.


CONTACT:  Phone: [phone]Fax: [phone]Fausto Levy, Acting President and Chief Executive OfficerE-mail: [e-mail] Corcoran, Vice President & CFOE-mail: [e-mail] 


    

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