Imperial Petroleum Inc. to Acquire SilaQuartz Mining Company Ltd

Business Wire, Oct 16, 1997

EVANSVILLE, Ind.--(BUSINESS WIRE)--Oct. 16, 1997--Imperial Petroleum Inc. (NASDAQ:IPTM) announced today it has signed a Letter of Intent to acquire an 80 percent interest in SilaQuartz Mining Company Ltd.

SilaQuartz owns mining rights in southeastern Idaho to 2,300 acres of high grade silica ore. Under the terms of the deal, Imperial will acquire 80 percent control of SilaQuartz in exchange for 750,000 shares of its common stock and 750,000 shares of the stock it owns in an affiliate, Wexford Technology, Inc. and provide $250,000 in loans to SilaQuartz to begin mining operations. The company expects to complete the acquisition in November 1997.

Company President, Jeffrey T. Wilson, said "SilaQuartz will diversify our mining portfolio and once mining operations begin this fall, will add significantly to our cash flows. Based upon independent assays and indications of interest from purchasers, their silica ore is of a quality that makes it marketable to the electronics industry where additional value is obtainable. We believe that the loan to SilaQuartz will provide the funds necessary to begin mining and secure a marketing arrangement for the product."

Imperial Petroleum Inc. is a diversified oil and mining company. The company's common stock is traded in the over-the-counter market of NASDAQ under the symbol IPTM.

The matters discussed in this news release contain forward-looking statements that are subject to certain risks and uncertainties including but not limited to, risks associated with the amount of precious metals in the ore and the ability of the company to employ its technology commercially. Future tests and results may differ materially from those previously reported. The company assumes no obligation to update the information in this release.

CONTACT: Imperial Petroleum Inc., Evansville

Jeffrey T. Wilson, 812/424-7948