Prolongation of CCAA at Davie Yards Inc. until 18 February 2011.

Davie Yards obtains a new extension of CCAA stay order.

LEVIS, QUEBEC -- 01/18/11 --

Davie Yards ("Davie" or the "Corporation") announced today that it has obtained an order from the Quebec Superior Court (the "Court") extending the stay of proceedings ordered by the Court to February 18, 2011, the whole pursuant to the Companies' Creditors Arrangement Act ("CCAA"). The extension will allow Davie to negotiate an agreement with a potential investor, to work on a response to the request for proposal to become one of the two selected shipyards under the National Shipbuilding Procurement Strategy ("NSPS"), and to develop and eventually submit a plan of arrangement to its creditors under CCAA.

Davie has received three expressions of interest from potential investors. During the last weeks, potential investors have conducted a due diligence process at the yard and Davie is now clarifying the intentions of the potential investors to be able to continue discussing on an exclusive basis with one of them shortly. Davie is also working on the qualification process to become a dedicated shipyard for the construction of large ships under the NSPS.