Kingsway Arms Retirement Residences Inc. Announces Private Placement and Early Warning of Chairman Dan Amadori

Subject to the receipt of final approval from the TSX Venture Exchange, Kingsway
Arms Retirement Residences Inc. (TSX VENTURE:KWA) (the "Company" or "Kingsway")
has secured a $15,000 private placement financing from the Chairman of its Board
of Directors, Dan Amadori. The private placement is structured as a unit
offering from treasury of 300,000 units at a price of $0.05 per unit. Each unit
consists of one common share and one common share purchase warrant to acquire an
additional common share at an exercise price of $0.05 per common share. The
warrants have a 5 year term and will expire on December 16, 2018 if unexercised
by that date. After giving effect to the private placement, the Company will
have 17,900,000 common shares issued and outstanding. 


As a result of the private placement, Mr. Amadori will have ownership, control
and direction over (directly and indirectly) 1,100,000 common shares,
representing 6.15% of the issued and outstanding common shares of the Company on
an undiluted basis. Mr. Amadori also has ownership, control and direction over
(directly and indirectly) 1,100,000 common share purchase warrants, each
exercisable into one common share, and 500,000 options, each exercisable into
one common share. Assuming the exercise of these convertible securities (but not
convertible securities held by others), Mr. Amadori would have ownership,
control and direction over an aggregate total of 2,700,000 common shares,
representing approximately 13.85% of the securities of the Company on a
partially-diluted basis.


The securities are being held by Mr. Amadori for investment purposes. In the
future, Mr. Amadori may, whether individually or on a joint basis, directly or
indirectly, increase or decrease his beneficial ownership in the securities of
the Company depending on factors including, but not limited to, the business and
prospects of the Company as well as market conditions, whether in the open
market or by way of private placement or otherwise. 


The private placement is exempt from the formal valuation and minority approval
requirements of Policy 5.9 / Multilateral Instrument 61-101 Protection of
Minority Security Holders in Special Transactions as the fair market value of
the Private Placement is not more than twenty-five percent (25%) of the market
capitalization of the Company.


About Kingsway Arms Retirement Residences Inc.: 

Kingsway is the owner of senior housing facilities located in Aurora, Ontario
and in Clarington, Ontario. The Corporation continues to actively pursue the
acquisition of development of additional senior housing facilities in order to
grow the Company's portfolio of properties. 


Safe Harbor Statement:

This press release contains forward-looking statements. Such forward-looking
statements are subject to a number of risks, assumptions and uncertainties that
could cause the Company's actual results to differ materially from those
projected in such forward-looking statements. In particular, factors that could
cause actual results to differ materially from those in forward-looking
statements include: our inability to obtain additional financing on acceptable
terms; risk that our facilities will not gain widespread market acceptance;
inability to compete with others who provide comparable facilities.
Forward-looking statements speak only as of the date made and are not guarantees
of future performance. We undertake no obligation to publicly update or revise
any forward-looking statements. When used in this document, the words "believe,"
"expect," "anticipate," "estimate," "project," "plan," "should," "intend,"
"may," "will," "would," "potential," and similar expressions may be used to
identify forward-looking statements.


This press release is not an offer of securities for sale in the United States.
The securities of the Corporation referred to herein have not been and will not
be registered under the United States Securities Act of 1933, as amended.
Securities of the Corporation may not be offered or sold in the United States
absent registration or an exemption from registration.


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


For further information, please see the Material Change Report that has been
filed on SEDAR.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Kingsway Arms Retirement Residences Inc.
Mr. Dan Amadori
Chairman of the Board of Directors
5409 Eglinton Avenue West, Suite 209
Etobicoke, ON M9C 5K6
647-288-2942