VANCOUVER, British Columbia, June 12, 2007 - Russell Breweries Inc. (TSX VENTURE: RB) is pleased to announce it has arranged a brokered private placement, on a best efforts basis, for up 6,000,000 units at $0.60 to raise gross proceeds of up to $3,600,000.

Each Unit consists of one common share and one non-transferable common share purchase Warrant. Each Warrant entitles the holder to purchase one additional share of the Company at a price of $0.75 for a period of one year from the completion of the financing subject to an early expiry provision which provides that once resale restrictions on the Shares have expired and the Company’s shares trade at or above a weighted average trading price of $1.00 for 15 consecutive days the Company may give notice that the Warrants will expire 30 days from the date of providing such notice.

The Units will be offered by the Company’s Agent, Bolder Investment Partners, Ltd., to eligible purchasers in the provinces of British Columbia, Alberta and Ontario and other jurisdictions as mutually agreed. The Agent will be paid a cash commission equal to 8% of the gross proceeds of the Offering. In addition, the Agent will be granted 600,000 agent’s warrants (the “Agent’s Warrants”) exercisable for a period of one year from the date of closing of the Offering. Each Agent’s Warrant will be exercisable into one (1) common share of the Issuer at $0.60 and will also be subject to early expiry conditions.

In addition, the Agent will be paid an administrative fee of $5000, a Corporate Finance Fee of 50,000 units, and reimbursement for of all reasonable expenses related to the Offering. All shares issued pursuant to the Offering, and shares issued pursuant to the exercise of Agent’s Warrants, will be subject to a four month hold period. Completion of the financing is subject to the receipt of all required regulatory approvals.

The proceeds of this offering will be used to fund the recently announced proposed acquisition of Fort Garry Brewing Company, assuming it completes, and the balance of funds for the purchase of capital equipment and for general working capital.

“The market has shown a very strong interest in the proposed amalgamation” said Brian Harris, CEO Russell Breweries. “The combination will provide us with the critical mass to proceed actively with our strategic growth plan.”