Empire Industries Ltd. announced that James Chui has been appointed as Non-Executive Chairman, and that a company he controls has agreed to advance a $2 million unsecured related party loan to Empire. Mr. Chui has been a director of Empire since 2017. He is the Chairman and CEO of Excellence Raise Overseas Limited ('EROL'), which owns 19.9% of Empire's common shares.

EROL has agreed to advance Empire $2,000,000 unsecured loan (the 'EROL Loan'). EROL is a related party to Empire by virtue of its 18.4% common share ownership. The loan matures in 3 years, and bears interest at the rate of 8% per annum, payable upon maturity. The loan is postponed and subordinated to Empire's senior lenders, but at EROL's option, the principal amount (and accrued interest) may be used to exercise some or all of the 6,000,000 Empire warrants currently held by EROL. These warrants have an exercise price of $0.50 per warrant until December 22, 2019, at which time the exercise price increases to $0.75 until their expiration on June 22, 2021. The EROL Loan is also a "related party transaction" within the meaning of TSX Venture Exchange Policy 5.9 and MI 61-101 because Mr. James Chui is a Director and Non-Executive Chairman of the Company and an executive officer of EROL. The Company has relied on the exemption from the formal valuation requirement contained in Sections 5.5(a) of MI 61-101 on the basis that the fair market value pertaining to the EROL Loan does not exceed 25% of the Company's market capitalization, calculated in accordance with MI 61-101. The Company has relied on the exemption from the minority approval requirement contained in section 5.7(f) of MI 61-101 in respect of the EROL Loan as the EROL Loan has been obtained from the related party on reasonable commercial terms that are not less advantageous to the Company than if the EROL Loan was obtained from persons dealing at arm's length with the Company and the EROL Loan is not convertible into common shares of the Company or repayable in common shares of the Company. A material change report in respect of the EROL Loan will be filed as required, but was not filed 21 days in advance of the closing of the EROL Loan due to the Company's immediate need for the proceeds of the EROL Loan. The members of the Board other than Mr. Chui have approved the Loan.