Bri-Chem Corp. Announces $80 Million Asset Based Lending Credit Facility

Bri-Chem Corp. ("Bri-Chem") (TSX:BRY), a leading North American wholesale
distributor of oil and gas drilling fluids, steel pipe and piping products
announces today that is has closed a new $80 million Asset Based Lending credit
facility ("ABL") with CIBC Asset-Based Lending Inc. and HSBC Bank Canada. The
initial term of the ABL is for three years and it replaces the existing $50
million revolving line of credit previously in place. 


The ABL is subject to a borrowing base that is calculated as a percentage of
specified value of eligible accounts receivable and inventory. The terms of the
ABL provide for an increase in available credit of approximately $30 million at
our peak seasonal requirements. In conjunction with the closing of the ABL,
Bri-Chem will pay out long-term debts totaling approximately $2.6 million. The
ABL is priced at prime plus 0.25% or banker's acceptance plus 1.75% or LIBOR
plus 1.75%.


"Bri-Chem has had an outstanding, long term relationship with HSBC Bank Canada
and we are now very excited to add CIBC as a our financial partner," said Don
Caron, Chief Executive Officer of Bri-Chem. ""We appreciate the depth of
financing the ABL provide us which now makes it possible for us to move
extremely quickly in executing our immediate and long term strategic growth
plans." 


About Bri-Chem

Bri-Chem is a wholesale distributor of drilling fluids, steel pipe and piping
products to the oil and gas industry in North America. Bri-Chem provides over
350 drilling fluid products and is a custom blender of cementing, acidizing and
fracturing additives and distributes Oil Country Tubular Goods (OCTG), carbon
steel welded and seamless fluid and gas transmission pipe. Additional
information about Bri-Chem is available at www.sedar.com or at Bri-Chem's
website at www.brichem.com. 


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