DEQ announces reprising of stock options

The reprising represents a dilutive net effect of approximately 2.3% using a price of US$ 1.00 per share.

In accordance with TSX Venture Exchange policies, the reprising of any options held by officers and directors of a company is subject to disinterested shareholder approval. Accordingly, disinterested shareholders of the Company will be asked to approve the reprising of 3,675,000 stock options held by officers and directors as well as the 710,000 stock options held by employees at DEQ's annual and special meeting scheduled on May 11, 2011.

Earle G. Hall, President and CEO of DEQ informs, “In 2008, the Board of Directors compensation package was reduced by more than US$ 100,000 and directors have since been compensated mainly with stock options for their work. It is important to note that all directors must be licensed in every jurisdiction and this is tedious and hard work on a regular basis.

“As well, as part of the cost cutting measures for the company, DEQ’s management team agreed to salary reductions and the restructuring of all departments of the company to save more than US$ 500,000 in annual operating costs. The goal of the stock option repricing for the management team is to compensate them for these reductions and salary freezes.”

“DEQ has a very strong management team and this gesture is to ensure they participate in the future success of DEQ. Our goal is to ensure their retention and continued mobilization as DEQ grows rapidly in the near and long term with very restricted resources,” he concluded.