HONG KONG, Sept. 11 /CNW/ -- Kingsway International Holdings Limited (TSX: KIH) (the "Company"), an Asian based financial services firm, announces:

-   a private placement offering ("Offering") of common shares at a
subscription price of C$0.55 per common share for proceeds of up to
US$8,000,000;
-   the acquisition of a 9.9% interest in Macarthur Minerals Limited, an
Australian exploration and development company whose ordinary shares
are traded on the TSX Venture Exchange ("Macarthur Minerals");
-   the acquisition of a 14% interest in TCA Fund, L.P., an investment
vehicle engaged in the acquisition of high-end automotive dealerships
in southern China ("TCA"); and
-   the acquisition of a 10% interest in TCA Management Limited, the
general partner of TCA (the "Manager").
Private Placement
-----------------

The Company is announcing its Offering of common shares at a subscription price of C$0.55 per common share for proceeds of up to US$8,000,000. The proceeds from the Offering will be used for investment purposes and general working capital. The Company is actively engaged in further investment activity in the natural resources sector, with a particular focus on the mining and energy sectors. The completion of the Offering is subject to TSX approval.

The Company's principal shareholder, Sun Wah Group of Hong Kong has confirmed that they will subscribe for US$4,000,000 of the Offering.

Initial Portfolio Investments
-----------------------------

Consistent with the Company's previously announced creation of a Strategic Investments Group, the Company is pleased to announce investments in sectors where it believes it can add value through participation with its investees. The Strategic Investments Group is focused on China's burgeoning need for natural resources and the continuing growth of the Chinese consumer market.

The Company has acquired 9.9% of the outstanding ordinary shares of Macarthur Minerals. Macarthur Minerals is exploring an iron ore deposit in South Western Australia and has recently announced an increased inferred mineral resource estimate for its Moonshine magnetite iron ore project. The investment meets the criteria established by the Company, being a natural resource investment focused on the Chinese market.

The Company has also acquired a 14% interest in TCA, a structured investment vehicle engaged in the acquisition of high-end automotive dealerships throughout southern China. The Company believes that high-end automotives is a high growth sector of the Chinese economy.