Walton Yellowhead Development Corporation Issues Interest Debentures to Investors

CALGARY, Alberta--()--Walton Yellowhead Development Corporation (the “Corporation”) announces that it has issued effective December 20, 2012, interest debentures (the "Interest Debentures") to holders of the 8% unsecured subordinated convertible extendable debentures (“Offering Debentures”).

The Corporation elected to pay its first interest payment on the Offering Debentures by issuing to holders thereof on a pro rata basis, that principal amount of Interest Debentures equal to the amount of interest owing under the Offering Debentures. The Interest Debentures are 8% unsecured, subordinated, convertible, extendable debentures of the Corporation and have substantially the same terms as the Offering Debentures. The issuance of the Interest Debentures is in accordance with the terms of the Trust Indenture governing the Offering Debentures which was disclosed in the Corporation's October 2011 prospectus (the "Prospectus").

The Offering Debentures were issued as part of the Corporation’s Prospectus offering. The Offering Debentures are unsecured and bear interest at a rate of 8% per annum. Interest on the debentures is calculated each September 30, and is payable annually on or before December 31. For this payment, interest is calculated from the date of issuance up to September 30, 2012, for total interest of $1,496,021.18 due on or before December 31, 2012.

The decision to pay the interest with the issuance of Interest Debentures is primarily a result of an approval delay on the Servicing Agreement from the City of Edmonton which has caused project delays and thus cash flow deviations from the original business model. Notwithstanding these delays, the Corporation anticipates that it will be able to complete the project within the approximate three-year time frame and achieve the net internal rate of return of 13% disclosed in the Prospectus.

In March of 2013, each investor will receive, by mail, a T5 from the Corporation’s transfer agent or the shareholder’s brokerage firm. The T5 will indicate the amount of interest that the Offering Debenture holder is required to report as a result of the issuance of the Interest Debentures.

Launched in 2011, the Corporation owns a two-phase, 131.4 acres industrial development in northwest Edmonton, Alberta, within the Winterburn Industrial area.

The Corporation is managed by Walton Asset Management L.P. and the development of the property is managed by Walton Development and Management L.P., both of which are members of the Walton Group.

The Walton Group is a multinational group of real estate investment and development companies headquartered in Calgary, Alberta, Canada. Walton’s expertise is the research, acquisition, management and development of strategically located land in major North American growth corridors. With more than 70,000 acres of land under management, the Walton Group is one of North America’s premier land asset managers. Walton manages and/or owns land assets in Phoenix, Austin, Dallas, Atlanta, Charlotte, the Washington, D.C. region, Ottawa, Toronto, Edmonton and Calgary.

For more information about the Walton Yellowhead Development Corporation, please visit www.sedar.com. For more information about Walton, visit www.Walton.com.

This news release, required by Canadian laws, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This news release contains forward looking information, and actual future results may differ from what is disclosed in this news release. The risks, uncertainties and other factors that could influence results are described in the October 2011 prospectus of the Corporation (including under the heading "Cautionary Statements") and other documents of the Corporation filed with Canadian securities regulatory authorities and available online at www.sedar.com.

4847-8795-8290, v. 2

Contacts

Walton Yellowhead Development Corporation
Blair Nixon, 1 403 265 4255
BNixon@Walton.com

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Contacts

Walton Yellowhead Development Corporation
Blair Nixon, 1 403 265 4255
BNixon@Walton.com