Nevada Chemicals, Inc. Announces Plant Expansion by Cyanco

  
    
  
  
    
      John T. Day, President and Chief Executive Officer of Nevada Chemicals, 
      Inc. (NASDAQ: NCEM), today announced that Cyanco, the joint venture 
      company in which Nevada Chemicals holds a 50% interest, has secured 
      volume commitments from new and expanding mining operations located in 
      the Nevada mining region, some of which are multi-year agreements for 
      the supply of sodium cyanide. As a result of these various supply 
      agreements, the Nevada Chemicals Board of Directors has authorized the 
      necessary capital contribution for the expansion of the Cyanco facility.
    
    
      Cyanco is a premier producer of liquid sodium cyanide to gold mines 
      located within the Western United States mining region and has been 
      producing strategic chemicals within this region for the past eighteen 
      years. Cyanco will expand their production capacity 50% by the year 
      2010. This new capacity will allow Cyanco to service and supply these 
      new commitments and also provide the capacity to supply new customers 
      and expanding gold mining operations of existing customers.
    
    
      “This is a great opportunity for Cyanco and 
      Nevada Chemicals. We have seen very strong gold prices this last year 
      and a continual increase in the demand for liquid sodium cyanide. Nevada 
      Chemicals has maintained a strong balance sheet and cash position which 
      allows us to take advantage of this expansion opportunity with our 
      existing reserve funds,” said Day. “We 
      are pleased with Cyanco’s track record and 
      commitment to the customers in this region.”
    
    
      Note: The foregoing contains “forward-looking” 
      statements that are pursuant to the safe harbor provisions of the 
      Private Securities Reform Act of 1995. Editors and investors are 
      cautioned that forward-looking statements involve risks and 
      uncertainties that may affect the Company’s 
      business prospects and performance. Estimates as to future capacity and 
      future demand for sodium cyanide are based on information currently 
      available to the Company and are based on assumptions about future 
      events and are subject to risks. These include, but are not limited to, 
      continued favorable gold prices, continuing operations at the mines 
      supplied by Cyanco, continued use of sodium cyanide at those mines at 
      levels similar to those currently existing, and economic, competitive, 
      governmental, technological and other factors discussed in the Company’s 
      reports to shareholders and periodic filings with the Securities and 
      Exchange Commission. The Company does not have control over these 
      factors and actual results may differ materially from those currently 
      expected.