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Gold/Mining/Energy : IBI CORP IBIC (CDN) -- Ignore unavailable to you. Want to Upgrade?

To: Elizabeth A Rice who wrote (142)	8/25/1998 2:19:00 PM
From: Elizabeth A Rice	Read Replies (1) \| Respond to of 422

AUGUST 25th NEWS RELEASE Canadian Company Press Releaseÿ IBICÿÿ1998-08-25 ÿÿ(provided courtesy of ISDN Wire Service) IBI CORPORATION GRANTED FINANCING EXTENSION; ACQUIRES OPTION TO EXPLORE ADDITIONAL GROUND IN UGANDA TORONTO, ONTARIO-- IBI Corporation announced today it has been granted an extension to provide financing of up to US$4.5 million for the exploration and development of the Busumbu phosphate and Namekara vermiculite deposits in Uganda. In addition, IBI has acquired the right to explore an additional four license areas near the Busumbu/Namekara properties. Edward Lai, President and Chief Executive Officer of IBI, said he was delighted with the amended agreement signed between IBI and IMD, adding that it reflects the strong relationship between IBI and IMD founders, Dr. Mark Doidge and Professor Peter van Straaten. (IBI recently appointed Dr. Doidge and Prof. van Straaten to the Board of Directors.) Dr. Doidge, citing the worldwide market volatility of the past few months, said an extension was the appropriate route to take. "Our ultimate goal is to bring the Busumbu/Namekara projects into production, and we believe, given the necessary extension, IBI can do that." The revised agreement includes the following: 1. A previous August 25, 1998 deadline imposed on IBI to raise $1.2 million has been extended to December 31, 1998 and the agreement amended. IBI now undertakes to provide and arrange all financing required to explore and to mine the proven deposits at the Busumbu phosphate and Namekara vermiculite properties in Uganda. IMD would retain a 30% carried interest, while IBI would hold a 70% working interest in the property. 2. IMD has assigned to IBI the right to explore four new areas granted to IMD by the Ugandan government under four new Exclusive Prospecting Licences (EPL) identified with deposits of phosphate, vermiculite and limestone. IBI must finance all exploration activities and, further, provide or arrange financing required to organize, develop and carry out production on the properties. As with the Busumbu/Namekara properties, IBI would hold a 70% interest, while IMD would retain a 30% carried interest. "This revised agreement gives IBI the opportunity to forge ahead with the Busumbu/Namekara projects and the new properties without being weighed down by somewhat restricted time constraints," Mr. Lai said. "Essentially, we now have the time needed to negotiate the necessary financing." IBI Corporation is a resource-based company with a phosphate/vermiculite mining project in Uganda. It has a proven reserve of 8.5 million tonnes grading between 11%-15% phosphate, as well as adequate reserves of vermiculite with which to begin production. IBI Corporation has 177,552,731 shares issued and outstanding. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Olav Svela or Jon W. Kieran, Investor Relations (416) 868-1079 Hume, Kieran Inc.