Mr. Roy Bonnell reports

LONG-TERM MARKETING AND SUPPLY AGREEMENT BETWEEN ARGEX TITANIUM INC. AND HELM U.S. CORP

Argex Titanium Inc. and Helm U.S. Corp., a wholly owned subsidiary of German-based Helm AG, have entered into an exclusive long-term marketing and supply agreement for the distribution of titanium dioxide (TiO2) in the United States and Canada.

Under this agreement, Helm U.S. will exclusively market and distribute 50 per cent, up to 25,000 metric tonnes per year, of TiO2 produced from Argex's first industrial-sized plant to be located in Salaberry-de-Valleyfied, Que. The agreement is for a period of seven years, commencing when the plant reaches a certain capacity which is currently expected to take place in the first quarter of 2017.

"This agreement combined with the supply agreement with PPG Industries Inc. commits a significant quantity of the available capacity of Argex's first full-scale titanium dioxide production plant," said Roy Bonnell, president and chief executive officer of Argex Titanium. "This is a significant step for Argex. It demonstrates confidence in the scalability of our technology and in our ability to partner with world-class leaders in the industry."

"We are extremely pleased to be able to secure an additional supply of high-quality titanium dioxide for our customers and add another milestone to the development of our distribution network in North America," said Philipp Mangold, president of Helm U.S. "This is a very exciting opportunity and we recognize the potential effect Argex's next-generation process will have on the titanium dioxide industry."

We seek Safe Harbor.