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News and events

C.A. Bancorp Inc. now trading under the symbol BKP on the TSX Venture Exchange

02/08/2006


TORONTO: C.A. Bancorp Inc. (formerly Masthead Resources Ltd.) is pleased to announce that its common shares are now trading on the TSX Venture Exchange under the symbol BKP. The price per share for C.A. Bancorp Inc. at the close of the market on February 7, 2006, was $0.35.

Investment Objectives and Strategy: C.A. Bancorp Inc. operates two businesses: a merchant bank and a market intermediary (through its wholly owned subsidiary C.A. Bancorp Ltd.).

As a merchant bank, C.A. Bancorp Inc. will pursue a strategy of making equity investments in Canadian small- and middle-market, public and private companies that exhibit the potential for substantial capital appreciation through improved management, financial performance and enhanced strategic positioning. Among other strategies, C.A. Bancorp Inc. will target undervalued companies that are underperforming due to poor management execution or inadequate capital structure, or are undergoing a significant transition, such as a change in senior management or a succession in ownership.

It is anticipated that C.A. Bancorp Inc. will make investments of $0.5 million to $10 million in companies with enterprise values ranging from $20 million to $100 million. Transaction types may include open-market purchases and private placement of securities of public issuers, management buyouts, equity investment in private issuers, going-private transactions and restructurings. Typically, C.A. Bancorp Inc. will seek to exercise significant influence through positions on the boards of directors of portfolio companies, as well as through structural and governance rights in privately held companies. Effective control of each portfolio company will be sought, either through a shareholders’ agreement, board representation or significant ownership, to ensure that C.A. Bancorp Inc. can direct change, if necessary. In all cases, board representation, governance standards and, in the case of the privately held companies, shareholder rights and protections will be sought.

C.A. Bancorp Inc. will invest in the form of subordinated debentures, convertible debentures, preferred shares, common equity or similar equity-like instruments.

C.A. Bancorp Inc. intends to be an active and constructive partner, whose executives will work together with management of portfolio companies to implement strategic, financial and governance initiatives with a view to creating significant value.

As a market intermediary, C.A. Bancorp Inc. will find equity and/or debt financing for junior and mid-market public and private companies in various industry sectors, including oil and gas, and mining.

Contact Information:
Mark Gardhouse, President, C.A. Bancorp Ltd. (media inquiries) or Katherine Pawling (Corporate Secretary)
Tel: 1-866-388-5985  Fax: 416-364-5615
info@cabancorp.com

The securities offered hereby have not been registered under the U.S. Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

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