Solv-Ex Corp. and United Tri-Star Resources expand scope Of joint activities

Business Wire, Feb 7, 1997

ALBUQUERQUE--(BUSINESS WIRE)--Feb. 7, 1997--Solv-Ex Corp. (NASDAQ - SOLV) and United Tri-Star Resources Ltd. (TSE - UTS) jointly announced that they have expanded the scope of activities in connection with their Limited Partnership Agreement for oil operations on the Bitumount Lease in Northern Alberta.

Solv-Ex Canada Ltd. ("SCL"), a wholly owned Canadian subsidiary of Solv-Ex Corp., is General Partner for the partnership, which will be known as the Solv-Ex Canada Limited Partnership. The Partnership is owned 90% by SCL and 10% by UTS, which has funded its share of expenditures to date.

The two companies have also entered into a separate agreement in contemplation of co-production of minerals from the lease or other properties using Solv-Ex technology. Under the second agreement, UTS will be contributing 10% of on-going costs incurred at the Solv-Ex pilot plant in Albuquerque after July 1, 1995. UTS has the option to acquire 10% of any working interests acquired by Solv-Ex in oil sands projects which use the Solv-Ex technology.

In addition to the Bitumount Lease, which is expected to commence production operations in the first quarter of 1997, Solv-Ex and UTS also own the much larger adjoining Fort Hills oil sands lease acquired in 1995 from Petro-Canada. The Limited Partnership Agreement contains provisions for expanded operations, which could include the Fort Hills lease.

UTS Chairman Dr. Rudolf Siegert said, "We have enjoyed a remarkable association with Solv-Ex since mid-1994 and look forward to commencement of production on the Bitumount Lease with great anticipation. We are equally excited about the potential for co-production of minerals, particularly in view of the accomplishments of Solv-Ex in development of its TiO2S(R) synthetic mineral product and its new patented electrolytic cell for production of aluminum metal."

CONTACT: Solv-Ex Corp., Albuquerque

Dean Gardy, 505/243-7701