Mr. Roy Bonnell reports

ARGEX SIGNS FEEDSTOCK SUPPLY AGREEMENTS - MULTI SOURCE STRATEGY ALLOWS FOR SECURITY OF SUPPLY AND MILL FEED STABILITY

Argex Titanium Inc. has signed letters of intent with ilmenite mining and distribution companies across Europe and India, for the supply of ilmenite concentrate to be shipped to its initial production facility.

These agreements put forward by Argex lay the groundwork for a complete feedstock acquisition strategy that will help Argex achieve its goal of being the lowest-cost producer of titanium dioxide in the industry.

• The agreements cover the full amount of 50,000 tons of yearly production.
• The agreements are with trading houses and mining companies selected on price, quality and stability of supply.
• The agreements were subsequent to successful compatibility testing with the Argex process.
• The feedstock selection process will remain continuous and directed towards reducing costs.
• The Argex process has allowed multiple site selection and flexibility to acquire feedstock that can be less desired by others supporting its advantage in the competitive landscape.

"Typical TiO2 feedstock can run up to a level of 30 per cent of a cost structure. Our target will be to keep this number below 10 per cent without affecting end product quality as well as stability of supply. Feedstock is an important cost component. We see further opportunities to reduce production costs as the technology increases in usage," said Roy Bonnell, chief executive officer of Argex.

We seek Safe Harbor.