On January 14, 2011, the Offeror acquired beneficial ownership of 2,500,000 units
(the “Units”) of Intertainment Media Inc. (the “Issuer”) at a price of $0.10 per Unit
through a private placement. Each Unit consists of one common share (a “Share”)
and one common share purchase warrant (a “Warrant”). Each Warrant will entitle the
holder to acquire one common share for a period of 24 months from the Closing Date
at an exercise price of $0.13 per warrant share. Assuming exercise of all the Warrants,
the Offeror would have acquired a total of 17,764,500 shares of the Issuer which
would represent 14.9% of the then issued and outstanding shares of the Issuer.