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Gold/Mining/Energy : BPI Industries Ltd (BPR-VSE) -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (179)	11/11/1998 4:34:00 PM
From: VIP Condo	Read Replies (2) \| Respond to of 355

NEWS RELEASEFor Immediate Release, November 10, 1998 BPI ACQUIRES COALBED METHANE INTERESTS IN CHINA BPI INDUSTRIES INC. (the "Company") (BPR - VSE) is pleased to announce that it has signed a Letter of Intent with International Methane Company, Ltd. ("IMC"), to acquire IMC's coalbed methane royalty assets in China. The royalties consist of a 20% modified royalty and 15% net profits interest granted by CDX Joint Venture in its 50% interest in two coalbed methane projects in China. The first project, the China I project is located in Shanxi Province, in the People's Republic of China and is 35,756 acres in size. A seven well pilot project is currently in the de-watering and flow testing stage. The second project, the China II project, located in Henan Province, is 26,182 acres in size and will be developed in the future. The agreement between BPI & IMC calls for BPI to allot, but not issue, 1,950,000 BPI shares in exchange for the coalbed methane royalty assets. Upon an independent report being issued on the project that is acceptable to the Vancouver Stock Exchange establishing that the value of the assets is equal to or greater than the deemed value of the shares, and BPI receiving royalty payments from the project of CDN$100,000 per month for 3 consecutive months, BPI will issue 50% of the shares allotted. The balance of the shares will be issued upon BPI receiving further royalty payments from the project in the amount of CDN$100,000 per month for an additional 3 consecutive months. This transaction is subject to BPI & IMC board approval as well Regulatory approval. Efforts are focused on finalizing development of the Shanxi resource to commercial production. Recent decisions in China's government dictate that the major cities such as Beijing, having high levels of air born pollution, will no longer be allowed to utilize coal as the fuel of choice in power generation and heating. This is anticipated to greatly enhance natural gas as a fuel which is already in short supply. A pipeline has recently been completed through the Northern Shanxi Province to Beijing in preparation for these changes. The China I project is the first recorded recovery of gas from anthracite coal. CDX Joint Venture's Chinese partner, the Jin Cheng Coal Company, is one of the largest coal producer in China and is the owner of the remaining 50% of the China I project. The relationship between parties has been cultivated over the last six years with all entities being confident of a continuing stable political and business association. The U.S. Environmental Protection Agency and Department of Energy are sponsoring international programs to encourage the capture of coalbed methane gas to help thwart climate warming. Removing this gas ahead of mining, qualifies for greenhouse gas credit that are beginning to trade in international markets and will further enhance the value of this resource. Final due diligence and formal documentation is in the process of being completed. The Company believes that these new coalbed methane royalty assets will greatly enhance the Company's position in the coalbed methane industry.BPI INDUSTRIES INC."L. Janda" Lakhwindar Janda, PresidentFor Further Information Contact 800-803-3204 or 604-685-8688 / info@bpi-industries.com The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.