LCN Leisure Canada Inc.

NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES

Leisure Canada Inc. (TSX VENTURE:LCN) - Leisure Canada Inc. (the "Company") is
pleased to announce the terms of a rights offering to existing shareholders to
raise gross proceeds of up to approximately $5.0 million (the "Offering").


The Company will be issuing to eligible holders (the "Eligible Shareholders") of
its outstanding class A common shares (the "Common Shares") of the Company of
record as at the close of business on June 9, 2011 (the "Record Date"), rights
(each, a "Right") to subscribe for up to an aggregate of 41,519,539 Common
Shares (such Common Shares being referred to as "Rights Shares"), which
represents approximately 25% of the currently issued and outstanding Common
Shares. The Offering will be made on the terms set forth in a rights offering
circular (the "Circular") to be mailed to Eligible Shareholders and available
under the Company's profile on SEDAR at www.sedar.com. Each Eligible Shareholder
will receive one Right for each Common Share held on the Record Date. Four
Rights will entitle the Eligible Shareholder to purchase one Rights Share at a
price of $0.12 per Rights Share. 


The Rights expire at 5:00 p.m. (Toronto time) on July 6, 2011 (the "Expiry
Date"), after which time unexercised Rights will be void and without value. The
Rights will be listed on the TSX Venture Exchange and will trade under the
symbol "LCN.RT" until 12:00 p.m. (Toronto time) on the Expiry Date, at which
time further trading will be halted.


Fully subscribing Eligible Shareholders may also subscribe for additional Rights
Shares that remain unsubscribed on the Expiry Date. 


Dundee Securities Ltd. ("Dundee Securities") has agreed to act as soliciting
dealer for the purpose of soliciting the exercise of Rights Shares in those
jurisdictions in which the Offering is made. Dundee Securities has also agreed
to act as advisor to the Company in connection with the Offering and to purchase
or cause to be purchased, on a reasonable best efforts basis, up to all of the
Rights Shares not otherwise purchased under the Offering. 


The completion of the Offering is not conditional upon the Company receiving any
minimum amount of subscriptions from Eligible Shareholders.


No Rights will be issued to shareholders who are residents of any jurisdiction
other than each of the provinces and territories of Canada and such other
jurisdiction outside of Canada and the United States where the issue of Rights
would not be unlawful. Reference is made to the section in the Circular entitled
"Details of the Rights Offering - Ineligible Shareholders". 


Net proceeds of the Offering will be up to approximately $4.5 million, assuming
that all of the Rights are exercised. Proceeds of the Offering will be added to
the general funds of the Company and will be used for working capital purposes.


This news release does not constitute an offer to sell or the solicitation of an
offer to buy any of these securities in the United States. Securities may not be
offered or sold in the United States absent registration under the United States
Securities Act of 1933, as amended, and applicable state securities laws, or an
available exemption from such registration requirements.


On Behalf of the Board of Directors

Robin Conners, President and CEO 

About Leisure Canada Inc.

Leisure Canada Inc. is a publicly traded company, incorporated under the laws of
Ontario and listed on the TSX Venture Exchange under the symbol "LCN". The
Company is engaged in the business of developing hotel, resort and commercial
properties in Cuba through its wholly-owned subsidiary, Wilton Properties Ltd.
("Wilton"), in joint venture with Grupo Hotelero Gran Caribe S.A. ("Gran
Caribe"), an agency of the Cuban government.


For further information on the Company please visit our website at
www.leisurecanada.com. The Company's public filings, including its most recent
audited consolidated financial statements, can be reviewed on the SEDAR website
(www.sedar.com). 


This news release may contain forward-looking statements and information within
the meaning of applicable securities legislation. These forward-looking
statements reflect management's current expectations, estimates, projections,
beliefs and assumptions that were made using information currently available to
management. In some cases, forward-looking statements can be identified by
terminology such as "may", "will", "expect", "plan", "anticipate", "believe",
"intend", "estimate", "predict", "forecast", "outlook", "potential", "continue",
"should", "likely" or the negative of these terms or other comparable
terminology. Although management believes that the anticipated future results,
performance or achievements expressed or implied by the forward-looking
statements and information are based upon reasonable assumptions and
expectations, the reader should not place undue reliance on forward-looking
statements and information because they involve assumptions, known and unknown
risks, uncertainties and other factors that may cause the actual results,
performance or achievements of the Company to differ materially from anticipated
future results, performance or achievements expressed or implied by such
forward-looking statements and information.

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