Mr. Roy Bonnell reports

ARGEX PREPARES FOR PROCESS INTENSIFICATION PROGRAM

Argex Titanium Inc.'s preparation for its process intensification program (PIP) is well under way. Representing a technical surge by the Argex engineering and technology team, the success of the PIP will assure "commercial readiness" of its proprietary hydrometallurgical process. The PIP's purpose is to demonstrate process robustness through end-to-end manufacturing of high-purity TiO2 with multiple batch cycles and systematic overview of ilmenite selection, leaching, solvent extraction, hydrolysis and product finishing.

"The industry is under pressure to deliver safety and strong environmental controls under intense pricing competition. New production paradigms must be reached. We are very excited to further define our environmental footprint and final rendering among all of our attributes," said Roy Bonnell, chief executive officer of Argex.

The program will compile data toward optimizing capital costs, operating costs and environmental footprint. Final metrics or ranges will consist of: leach circuit parameters, organic solvent operative windows, hydrolysis crystal characterizations and throughput, final water balances, recycling and regeneration plans, and bleed estimates.

Argex management is supported in this important strategic initiative by experienced external partners with strong hydrometallurgical scale-up experience. The PIP provides process robustness that helps ensure scale-up to commercial production for chemical and industrial facilities. The results of the PIP will also considerably reduce the financial risk for shareholders, strategic partners and other stakeholders.

We seek Safe Harbor.