AirIQ Announces Closing of $485K Financing

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


AirIQ Inc. (the "Company" or "AirIQ") (TSX VENTURE:IQ), a supplier of wireless
location-based services, today announced the closing of the previously announced
$485,000 financing comprised of a $100,000 loan and a non-brokered private
placement for gross proceeds of $385,000 (the "Private Placement").


Loan Financing

The Company entered into a Credit Agreement with Mosaic Capital Partners LP
("Mosaic") for a loan of $100,000 (the "Loan").


Pursuant to the terms of the Credit Agreement, the Company executed a promissory
note in favour of Mosaic for $100,000. The Loan has a maturity date of June 17,
2015 and bears interest at a rate of 15% per annum, calculated daily and payable
monthly in arrears. The Company paid a fee of $5,000 to Mosaic in connection
with the advance of the Loan. Interest only is payable on the Loan on a monthly
basis, and the Loan is secured by a charge over all of AirIQ's property and
assets. The Loan is not convertible into shares of the Company.


In consideration of the Loan, the Company issued a warrant to Mosaic to purchase
up to 700,000 common shares of the Company (the "Warrant") at an exercise price
of $0.05 per share. The Warrant will expire on December 17, 2018. The Company
had originally agreed to issue a warrant to purchase 500,000 common shares of
the Company to Mosaic as part of this financing, but as consideration for a
shorter term of expiry, has agreed to issue a warrant for 700,000 common shares.


Concurrent with the Loan and the issuance of the Warrant, Mosaic has agreed to
cancel warrants to purchase up to 133,333 common shares of the Company which
were granted to Mosaic on November 30, 2009.


Mosaic is a shareholder of the Company and Vernon Lobo, a director and Chairman
of AirIQ, is a managing director of Mosaic. During the Company's approval of the
Loan, Mr. Lobo declared his conflict on the matter and abstained from voting.


Non-Brokered Private Placement

The Company issued 7,700,000 common shares under the Private Placement at a
price of $0.05 per share for gross proceeds of $385,000.


Certain officers, directors and insiders of the Company purchased the common
shares under the offering, representing approximately 56% of the total number of
common shares issued under the Private Placement. Following completion of the
offering, these parties together with other officers, directors and insiders of
the Company will have beneficial ownership of, or control or direction over, an
aggregate of 12,521,756 common shares of the Company, which represents
approximately 43% of the total number of outstanding shares of the Company
post-offering.


The remaining approximate 44% of the total number of common shares issued under
the Private Placement (representing approximately 11.75% of the issued and
outstanding shares of the Company post-offering) were purchased by employees and
consultants of the Company.


Following completion of the Private Placement, Mosaic owns 18.07% of the issued
and outstanding common shares of the Company, and Donald Gibbs, President and
Chief Executive Officer of the Company, owns 19.83% of the issued and
outstanding common shares of the Company. Both parties will file any required
reports under National Instrument 62-103 - The Early Warning System and Related
Take-Over Bid and Insider Reporting Issues.


Pursuant to applicable Canadian securities laws, the securities issued under the
Private Placement are subject to a four-month hold period from the date of
closing of the Private Placement, expiring on April 17, 2014. No fees or
commissions were paid in connection with the Private Placement.


The Private Placement remains subject to the receipt of all necessary approvals,
including the final approval of the TSX Venture Exchange.


The Private Placement constitutes related party transactions under Canadian
Multilateral Instrument 61- 101 ("MI 61-101") by virtue of the participation in
such transactions of the directors of the Company referenced above, but the
transactions are otherwise exempt from the formal valuation and minority
approval requirements of MI 61-101.


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy any of the securities referenced herein, nor shall there be any
offer or sale of such securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of such jurisdiction.


Following completion of the Private Placement, AirIQ now has a total of
29,058,947 common shares issued and outstanding.


About AirIQ

AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ's
office is located in Pickering, Ontario, Canada. The Company offers a suite of
asset management services that generate recurring revenues from each device
deployed. AirIQ delivers services to two primary markets: Commercial Fleets and
dealers that service Consumer segments. AirIQ provides vehicle owners with the
ability to monitor, manage and protect their mobile assets. Services include:
instant vehicle locating, boundary notification, automated inventory reports,
maintenance reminders, security alerts and vehicle disabling and unauthorized
movement alerts. For additional information on AirIQ or its products and
services, please visit the Company's website at www.airiq.com.


Forward-looking Statements

This news release contains forward-looking information based on management's
best estimates and the current operating environment. These forward-looking
statements are related to, but not limited to, AirIQ's operations, anticipated
financial performance, business prospects and strategies. Forward-looking
information typically contains statements with words such as "hope", "goal",
"anticipate", "believe", "expect", "plan" or similar words suggesting future
outcomes. These statements are based upon certain material factors or
assumptions that were applied in drawing a conclusion or making a forecast or
projection as reflected in the forward-looking statements, including AirIQ's
perception of historical trends, current conditions and expected future
developments as well as other factors management believes are appropriate in the
circumstances. Such forward-looking statements are as of the date which such
statement is made and are subject to a number of known and unknown risks,
uncertainties and other factors, which could cause actual results or events to
differ materially from future results expressed, anticipated or implied by such
forward-looking statements. Such factors include, but are not limited to,
changes in market and competition, technological and competitive developments
and potential downturns in economic conditions generally. Therefore, actual
outcomes may differ materially from those expressed in such forward-looking
statements. Forward-looking statements are provided for the purpose of providing
information about management's current expectations and plans relating to the
future. Readers are cautioned that such information may not be appropriate for
other purposes. Other than as may be required by law, AirIQ disclaims any
intention or obligation to update or revise any such forward-looking statements,
whether as a result of such information, future events or otherwise.


Neither 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
AirIQ Inc.
Donald Gibbs
President and Chief Executive Officer
(905) 831-6444, Ext. 4255
dgibbs@airiq.com
www.airiq.com
AirIQ (TSXV:IQ)
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