News Release. Circa Reports Improved Sales and Operating results for the Second Quarter Ended June 30, 2012

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1 August 16, 2012 For Immediate Release News Release Circa Reports Improved Sales and Operating results for the Second Quarter Ended June 30, 2012 Calgary, AB Circa Enterprises Inc. (CTO-TSXV) (the "Company" or "Circa"), a manufacturer of equipment for the telecommunication, electrical utility, and construction industries, reports results of operations for the second quarter June 30, Summary of second quarter operating results: Consolidated sales of $6.1 million, representing a 7.9% increase compared to Q sales of $5.7 million Profit for the period from continuing operations for the second quarter of 2012 of $268,000 compared to a loss from continuing operations of $22,000 for Q EBITDA and Adjusted EBITDA of $473,000 for Q compared to EBITDA ad Adjusted EBITDA of $81,000 for Q (see below for explanation and calculation of EBITDA and Adjusted EBITDA) As of June 30, 2012 the Company was debt free as a result of an increase in cash flow from operations, which increased $0.5 million Summary of year-to date operating results: Consolidated sales of $11.35 million, representing a 0.4% increase compared to Q sales of $11.30 million Profit from continuing operations for the six months June 30, 2012 of $268,000 compared to a loss of $22,000 for the six months June 30, 2011 EBITDA of $593,000 for the six month period June 30, 2012 compared to EBITDA of $291,000 for the same period in 2011 Adjusted EBITDA of $638,000 for the six month period June 30, 2012 compared to Adjusted EBITDA of $409,000 for the same period in 2011 Cash flow from operations for the six months June 30, 2012 of $0.7 million compared to cash used of $0.2 million for the six months June 30, 2011

2 EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization and is adjusted for other non-recurring items and non-cash items. EBITDA and Adjusted EBITDA are a non-ifrs financial measures and do not have any standardized meaning prescribed by International Financial Reporting Standards and, therefore, may not to be comparable to similar measures presented by other issuers. Management believes that EBITDA and Adjusted EBITDA are useful supplemental measures, which provides an indication of the results generated by Circa's primary business activities prior to consideration of how those activities are financed, amortized or taxed. Readers are cautioned, however, that EBITDA and Adjusted EBITDA should not be construed as an alternative to comprehensive income (loss) determined in accordance with IFRS as an indicator of the Company's financial performance. EBITDA and Adjusted EBITDA are calculated by the Company as follows: $000 s $000 s $000 s $000 s Profit for the period from continuing operations (22) Income taxes Interest Depreciation and amortization EBITDA Non-recurring severance charge Adjusted EBITDA Consolidated sales for the second quarter of 2012 were $6.1 million -- a $0.4 million or 7.9% increase over the same period in The increase resulted from higher sales in the Circa Metals segment as the Company realized increased sales from the Hydel branded product line. This increase was partially offset by slightly lower custom metal sales in the quarter compared to Telecom segment sales were stable in Q compared to Q As a result of the higher sales activity, the Company s earnings increased in the quarter when compared to the prior year. The Company posted after tax profit of $268,000 and comprehensive income of $313,000 for the quarter compared to after tax loss of $22,000 and comprehensive loss of $16,000 reported in As noted in the chart above, the Company was able to generate positive EBITDA of $473,000 for the quarter.

3 Ivan Smith, Circa s President and Chief Executive officer, stated: The second quarter 2012 financial results are a marked improvement over the results achieved over the second quarter of The improvement in quarter to quarter sales, combined with higher margins achieved through streamlined operations and reduced costs resulted in a boost in profitability. The operations of both business segments were more profitable when compared to the prior year. I am pleased to report that the Company was able to pay down its operating line of credit during the quarter with cash generated from operations and the quarter debt free. The Company has generated $900,000 more in cash for the six months June 30, 2012 compared to the first six months of We are optimistic about the direction of the business and will continue to concentrate our efforts towards revenue growth, efficient operations and improving on our financial results.

4 CIRCA ENTERPRISES INC. Consolidated Statements of Comprehensive Income Unaudited $000 s $000 s $000 s $000 s Revenue 11,345 11,303 6,145 5,696 Cost of sales (8,664) (8,795) (4,671) (4,560) Gross profit 2,681 2,508 1,474 1,136 Selling, general and administrative expenses (2,222) (2,400) (1,060) (1,143) Operating profit (7) Loss on sale of assets - (1) - (1) Finance costs (13) (18) (7) (12) Profit before tax (20) Income tax expense (151) (35) (139) (2) Profit (loss) for the period from continuing operations attributable to shareholders of the Company (22) Other comprehensive income (loss): Exchange differences on translating foreign operations, net of tax 30 (64) 45 6 Total comprehensive income (loss) for the period attributable to shareholders of the Company 325 (10) 313 (16) Earnings (loss) per share (in $ s) Basic and diluted (0.00)

5 Circa Enterprises Inc. is a public company with operations in Alberta, Ontario and Florida. The outstanding common shares of Circa Enterprises Inc. are listed and trade on the TSX Venture Exchange under the trading symbol CTO. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The Company's quarterly financial statements and related management's discussion and analysis have been filed with certain securities regulatory authorities in Canada and may be accessed electronically through the SEDAR website at Contact: Mr. Ivan Smith Mr. Cory Tamagi President and CEO VP Finance and CFO Circa Enterprises Inc. Circa Enterprises Inc. (403) (403) investor@circaent.com Website: