Nevada Chemicals' Joint Venture Company, Cyanco, Considers Calcium Cyanide Production at...

SALT LAKE CITY -- According to John T. Day, president and chief executive officer of Nevada Chemicals Inc. (Nasdaq: NCEM), in the Dec. 19 issue of the Chemical Market Reporter, a widely read, weekly chemical industry publication, the following was cited: "Cyanco is exploring the viability

of producing liquid calcium cyanide at its facility near Winnemucca, Nevada, where it already produces liquid sodium cyanide. Citing the abrupt and sustained increase in raw materials, Cyanco said it is investigating possible ways to help the local mining community control cost increases for the chemical. For years, calcium cyanide has been used to leach gold in South Africa, with gold recoveries essentially equivalent to sodium cyanide. In addition, some within the gold mining community report that the use of calcium cyanide as a lixiviant, rather than sodium cyanide, reduces the cost of rinsing and decommissioning heap leach pads." E[acute accent]Today the cost of caustic soda (sodium hydroxide), a principal raw material in sodium cyanide, is four to six times more expensive than lime used in calcium cyanide. The price of caustic soda is highly dependent on the cost of energy and therefore reflects the recent increases in electricity and natural gas. Day cautioned that Cyanco has not made a decision regarding production of calcium cyanide but the ongoing study looks promising. E[acute accent]Nevada Chemicals Inc., through its 50% stake in Cyanco, a chemical producer of sodium cyanide located in Winnemucca, Nev., is the premier producer of strategic chemicals for the gold mining industry of the United States.

E[acute accent]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. These include, but are not limited to, economic, competitive, governmental, technological and other factors discussed in the company's reports to shareholders and periodic filings with the Securities and Exchange Commission.