Mr. Roy Bonnell reports

ARGEX REPORTS ON 2014 & PROVIDES OPERATIONAL OUTLOOK FOR UPCOMING FIRST PLANT

Argex Titanium Inc. has filed its financial results for the year ended Dec. 31, 2014, on SEDAR and has provided updated estimates related to the construction and operation of its first commercially sized titanium dioxide (TiO2) production facility to be located in Salaberry-de-Valleyfield, Que.

"During 2014, we achieved significant milestones including securing an exclusive long-term marketing and supply agreement with Helm U.S. Corp.," stated Roy Bonnell, president and chief executive officer. "We raised $7.5-million through the issuance of convertible debentures and exited 2014 with a clean capital structure as all remaining warrants have been exercised or expired.

"Furthermore, in December of 2014, Argex received an ICIS innovation award. The annual ICIS Innovation Awards recognizes chemical companies that demonstrate an innovative approach to business, the environment and/or sustainability. We are proud to be counted among the very best innovators," he added.

In February, 2015, Argex announced that it had successfully completed technical due diligence associated with the financing of Argex's first plant.

"We are pleased to have passed this major financing milestone," stated Mr. Bonnell. "The technical diligence was demanding and thorough and contributed positively to the development of our financing process and our strategy of risk mitigation. Argex is poised for the next phase of its growth -- the successful construction and operation of its first plant."

Plant operating model

Argex has updated its target plant operating model based on prevailing North American TiO2 prices and information gathered in connection with the technical due diligence process conducted by its potential financial sponsors from marketing partners, internal estimates, equipment providers and other third parties.

The following is a summary of Argex's model based on the assumption of scale-up to full capacity. Argex currently estimates that full capacity of the plant will be achieved approximately 12 months after commencement of commercial operations.

Argex's plant target operating model

• Worldwide TiO2 market -- 5.7 million tonnes per year;
• Plant capacity -- 50,000 tonnes per year;
• Revenue -- $145-million (U.S.) to $155-million (U.S.);
• Gross profit -- $80-million (U.S.) to $96-million (U.S.);
• Gross margin -- 55 per cent to 62 per cent;
• EBITDA -- $65-million (U.S.) to $81-million (U.S.);
• EBITDA margin -- 45 per cent to 52 per cent.

The model referenced above is based on a number of assumptions and variables, such as product and byproduct selling prices, product quality, ore selection, production yields, input costs, shipping costs, feedstock and chemical costs, overhead costs, product mix, staffing estimates, foreign exchange rates, and other inputs, all of which may be subject to change.

Construction of plant in Valleyfield Port area

In its 2015 budget, the Quebec government announced its plans to allocate $1.5-billion to support its maritime strategy, including $450-million to attract private investment by focusing on logistical and port infrastructure.

Argex has now secured a one-million-square-foot parcel of land where it plans to build a customized building rather than renovate and modify the existing building where Argex's pilot plant will continue to be situated. The parcel of land to be purchased from and rezoned by the City of Valleyfield is located in the Valleyfield Port area and is expected to result in the following advantages as compared with the previously proposed site:

• Equivalent capital cost (including contingency risks) and reduced construction risk as the potential for unknown liabilities and requirements to tear down, move or expand buildings and fixtures is avoided;
• Increased building height and equipment layout flexibility;
• Closer proximity, with a rail spur easement, to a local CSX rail terminal and to the Port of Valleyfield;
• Closer proximity to a major chemical feedstock provider;
• Reduced operating expense;
• No change in construction timeline.

We seek Safe Harbor.