Mr. Roy Bonnell reports

ARGEX'S VALLEYFIELD R&D CENTRE COMMENCES OPERATIONS; PERMITTING COMPLETED WITH THE GOVERNMENT OF QUEBEC; OPERATIONS UNDERWAY WITH ENGINEERING AND NEW R&D TEAM NOW LOCATED ON-SITE; ON-SITE R&D CENTRE EXPECTED TO ACCELERATE TRAINING AND TIMELINES WHILE BETTER PROTECTING AND ENHANCING INTELLECTUAL PROPERTY

Argex Titanium Inc.'s research and development centre is now operating at Salaberry-de-Valleyfield, which is also the planned site of the company's first industrial-sized titanium dioxide production facility.

The R&D centre received its operating permits from the government of Quebec last week. The company has moved its engineering team from its corporate offices in Montreal to Valleyfield, where its R&D team is also located.

Argex believes that the close integration of the company's R&D activities with the development of its Valleyfield facility at a single site will result in a more focused co-ordination between trials and engineering detailed design, as well as lower overall costs. The company will now be able to benefit more fully from the research and development tax credits from the government of Quebec. The R&D Centre will also serve as an important training facility for the future commercial operations at Valleyfield. In addition, by operating the R&D centre directly, Argex is now in a much better position to protect and enhance its intellectual property.

"The R&D centre at Valleyfield enables Argex to continue innovation on its titanium production process as we advance towards production," asserted Enrico Di Cesare, chief operating officer and vice-president, technology, at Argex. "The fact that the R&D centre is now operational will help the Argex technology team find more ways to decrease the operating and capital costs of our first industrial-sized production module."

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