Mr. Mazen Alnaimi reports

ARGEX TITANIUM UPDATES ON MILESTONE ACHIEVEMENTS

Argex Titanium Inc. has provided an update on significant achievements at the Valleyfield laboratory, as well as on the basic and detail engineering for its planned titanium dioxide (TiO2) technology centre and commercial plant.

At its Valleyfield laboratory, Argex has completed the last finishing step of its process by concluding final validation runs, which fixes the flowsheet for the whole process. The database required for commercial plant design is also complete. Argex has provided product samples to offtakers for certification testing and is very confident that its product meets or exceeds industry standards.

Basic engineering for the construction of the technology centre and the commercial plant is now 60 per cent complete, and process simulations will be finished in August. CFD (computational fluid dynamics) work is under way at McGill University and leach system design will be completed shortly. The modern computing methods being used are well accepted in the industry, are less costly than semi-finished workings and accelerate the commercial plant design process.

In addition to working with SCN-Lavalin and WSP on various engineering projects, Argex has retained the services of Thibault & Associates Inc., an independent engineering firm specialized in chemical processes, to validate the engineering work being done by Argex for its commercial plant design. Thibault & Associates will review the work and assist with incorporation into the final plant design. The review will cover all aspects of reaction chemistry, equipment configuration, and opex (plant operating cost) and capex (capital investment) estimates, thus providing a thorough third party review of the final basic engineering package.

Preliminary PIDs (piping and instrumentation diagrams) are ready, and the detailed equipment design for the commercial plant should commence soon. The instrumentation architecture has been completed, and Argex is now working on field instruments and control mechanisms. Argex has arranged for external equipment vendors to test the hardware that will be supplied by the vendors with performance guarantees for the commercial facility.

The corporation is also in discussions with property owners for a plant site for both the technology centre and the commercial facility in Quebec. The location will be announced as soon as the contracts have been signed.

Finally, meetings have been held with the Quebec government's environmental divisions for permitting of both the technology centre and the commercial plant. The required documents are currently being prepared for submission to the relevant authorities.

About Argex Titanium Inc.

Argex has developed an advanced chemical process for the volume production of high-grade titanium dioxide (TiO2) for use in high-quality paint, plastics, cosmetics and other TiO2 applications. The corporation's unique proprietary process uses relatively inexpensive and plentiful source material from a variety of potential vendors to produce TiO2, along with other valuable byproducts. Argex's process provides a significant cost and environmental advantage over current legacy TiO2 production methods.

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