BSG Basicgov Systems Inc.

BasicGov Systems, Inc. (TSX VENTURE:BSG) ("BasicGov" or the "Company") announces
that at the Annual and Special General Meeting of Shareholders held on September
15, 2010 shareholders approved the agreement to sell all of its assets other
than cash to 0887901 B.C. Ltd. (the "Purchaser"), a wholly-owned subsidiary of
Pender Growth Fund (VCC) Inc. ("Pender"). The transaction was approved by 100%
of the shareholders represented in person or by proxy who were eligible to cast
votes on this resolution at the meeting. Votes attached to the common shares
that are beneficially owned, controlled or directed by shareholders that are
interested parties were not eligible to cast votes on this resolution. Pender
and certain directors of the Company were interested parties and, as such, their
shares were excluded from this vote.


Pursuant to the terms of a Business Assets Purchase and Sale Agreement (the
"Sale Agreement") dated August 16, 2010 among the Company, 0887901 B.C. Ltd. and
Pender, the Company will sell all of its assets, other than cash, to 0887901
B.C. Ltd. for consideration of approximately $900,000, subject to adjustments
for changes in specific working capital balances between July 1, 2010 and the
Closing Date (the "Sale Transaction"). This consideration exceeds the value of
the Company's BasicGov Software-as-a-Service ("SaaS") business estimated by a
business valuator to be between $810,000 and $850,000 as of July 15, 2010.


Consideration for the Company's SaaS business assets is a combination of cash
and the assumption of certain liabilities of the Company. The actual amount of
cash payable and the value of the assumed liabilities will be calculated as of
the completion of the transaction so that adjustments can be made for additional
sales of subscriptions of the Company's BasicGov service and increases or
decreases in liabilities to be assumed between the date of the Sales Agreement
and the date the sale is completed. Subject to the amount of cash consideration
not exceeding $780,000, the amount of cash payable is intended to ensure that
the Company has $100,000 in working capital after the Closing Date and the share
redemption and repayment of advances under it's existing loan facility with
Pender. The Company will use this working capital to fund its expenses as a
publicly listed shell company and to seek a new business that has the potential
to attract greater support from the public market.


The completion of the Sale Transaction triggers redemption rights under the
Company's outstanding 250,000 Series 1 Preference Shares that are held by
Pender, which shares will be redeemed by the Company concurrent with completion
of the Sale Transaction. The Company will also repay all working capital loans
made by Pender to the Company concurrent with completion of the Sale
Transaction. Payment for the redemption and loan repayment will be made with the
cash proceeds of the Sale Transaction. 


Since the Company's name is one of the assets to be acquired by 0887901 B.C.
Ltd. under the Sale Transaction, Shareholders also approved changing its name
upon the closing of the Sale Transaction to "Pedro Resources Ltd." or such other
name as may be acceptable to the TSX Venture Exchange.


The Sale Transaction is expected to close by the end of September.

About BasicGov Systems, Inc.

BasicGov Systems, Inc. ("BasicGov") (formerly CloudBench Applications Inc.) (TSX
VENTURE:BSG) develops, sells and supports web-based software for cities,
counties, state governments and government agencies to streamline planning,
permitting and inspections, code enforcement, licensing and citizen access.
BasicGov is a reliable, secure solution delivered for an affordable price and
the only web-based software for local governments built on the Salesforce.com's
Force.com platform, the backbone of cloud computing solutions used by more than
70,000 organizations worldwide. Unlike enterprise software that is expensive to
acquire and difficult to implement, BasicGov does not require capital investment
and is easy to set up. www.basicgov.com.


Forward-Looking Statements

This news release contains forward-looking statements. Actual events or results
may differ materially from those described in the forward-looking statements due
to a number of risks and uncertainties, including failure of the Sale
Transaction to close, changes in market and competition, technological and
competitive developments, cooperation and performance of strategic partners,
potential downturns in economic conditions generally. Forward-looking statements
are based upon management's estimates, beliefs and opinions. The Company assumes
no obligation to update forward-looking statements, other than as required by
applicable law. 


On behalf of the Board of Directors

BASICGOV SYSTEMS, INC.

David Roberts, Director

Basicgov Systems Inc. (TSXV:BSG)
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