Mr. Roy Bonnell reports

ARGEX SIGNS LOI FOR 100% OF ITS IRON BY-PRODUCTS WITH PVS CHEMICALS

Argex Titanium Inc. has signed a letter of intent with PVS Chemicals, a global manufacturer, distributor and marketer of chemicals, and PVS's wholly owned subsidiary, Fanchem Ltd., to distribute 100 per cent of Argex's iron byproducts, to be produced at Argex's first industrial-scale titanium dioxide plant to be located in Valleyfield, Que.

This letter of intent will act as a guideline for the negotiation of a definitive offtake and distribution agreement between Argex and PVS, which shall be negotiated over the next several months on an exclusive basis.

"PVS looks forward to negotiating a definitive agreement with Argex and growing this valuable strategic business partnership in the years to come," stated Jeff Inkes, vice-president and general manager of Fanchem.

"A significant portion of Argex's cost advantage comes from the sale of our iron byproducts," stated Roy Bonnell, president and chief executive officer of Argex Titanium. "Recent test results for Argex's iron products indicate that they surpass the current technical requirements of the industry. We are pleased to work with PVS, a proven market leader, as we grow our business."

We seek Safe Harbor.