Nevada Chemicals, Inc. Announces Settlement of Lawsuit

  
    
  
  
    
      John T. Day, President and Chief Executive Officer of Nevada Chemicals, 
      Inc. (NASDAQ/NMS:NCEM), today announced that it had favorably settled 
      its lawsuit with Degussa Corporation. Effective January 2, 2003, Degussa 
      Corporation transferred its 50% joint venture interest in Cyanco to a 
      related entity, CyPlus Corporation (CyPlus), as part of a reorganization 
      of the worldwide mining chemicals business of its corporate parent, 
      Degussa GmbH.
    
    
      On January 5, 2004, Winnemucca Chemicals (a wholly-owned subsidiary of 
      Nevada Chemicals) filed a complaint related to Degussa Corporation’s 
      purported transfer of its joint venture interest to CyPlus and seeking 
      commission payments owed to Cyanco under a prior distribution agreement 
      between Cyanco and Degussa Corporation. The litigation sought, among 
      other things, to void such transfer, or alternatively, to enforce 
      Winnemucca Chemicals’ right under the Joint 
      Venture Agreement arising out of the transfer.
    
    
      The parties reached a settlement of this lawsuit on July 18, 2007, which 
      allows CyPlus to maintain ownership of Degussa Corporation’s 
      50% ownership interest in Cyanco, grants Winnemucca Chemical a right of 
      first refusal in the transferred assets, and requires that CyPlus pay 
      Winnemucca Chemicals $581,000, which includes legal costs incurred by 
      Winnemucca Chemicals. In an earlier partial settlement of the lawsuit, 
      CyPlus also paid Winnemucca Chemicals $128,000 in December 2006, related 
      to its claims to recover commissions under the distribution agreement, 
      which amount also included legal fees incurred by Winnemucca Chemicals.
    
    
      Cyanco is a joint venture company whose participants currently are 
      Winnemucca Chemicals and CyPlus Corporation. Cyanco has produced and 
      marketed liquid sodium cyanide to the western United States gold mining 
      region for the past 17 years.