Hello Smith and Co. Time to get your sh*t together!!

2018-11-27 10:09 ET - News Release

Mr. Mazen Alnaimi reports

ARGEX TITANIUM ANNOUNCES JV FOR FIRST COMMERCIAL PLANT

Argex Titanium Inc.'s chain of events necessary to change the titanium dioxide (TiO2) industry has now formally started by executing a significant agreement that will insure its future success and provide substantial benefit to its shareholders.

The company is announcing the formal signing of a memorandum of understanding with a major mine operator in Vietnam, Hung Thinh Minerals Investment Co. Ltd., for the creation of a joint venture in Vietnam. The joint venture, which is expected to be non-dilutive to Argex shareholders, will construct a TiO2 pigment-grade facility with initial capacity of 100,000 tonnes per annum, expandable to 300,000 tonnes per annum. The facility will use ore from existing mines which have an ilmenite reserve of more than 60 million tonnes. The project, expected to require investment in excess of $200-million (U.S.), will be financed by the company's Vietnamese partner using Argex proprietary process technology. Products from the plant will be marketed to local users in Southeast Asia and worldwide which have aggressive growth predicted to continue for many years. The project will also create employment in Vietnam, generate infrastructure needed for further development of assets in the country and provide substantial economic benefits for the developing nation. Joint venture agreements will be completed in the next 60 days and engineering work on the Vietnamese plant will commence early in 2019.

Argex is also in discussions with other counterparties to develop similar JVs in different countries. The company will be sharing hopefully soon any new developments on all fronts.

"This agreement, which is the culmination of years of work for Argex, provides a sound base for our economic and technical future. It is rewarding that the confidence placed in Argex by major players in the TiO2 user industry has fulfilled our ambition for the company. The MOU with Hung Thinh indicates that confidence in the Argex technology will bring many licensing opportunities beyond this joint venture. My belief is that after a long period of intensive work by our staff, the opportunities for commercial benefit are being realized and our strategy is proving to be sound and viable for a long-term future in the TiO2 markets," said Mazen Al Naimi, chairman and chief executive officer.

"We look forward to the potential of this opportunity with Argex as a partner in developing a commercial TiO2 facility in Vietnam. It will allow us to pursue market opportunities in the Asian region and grow the company and its profitability. The Argex technology will provide us with a novel process which is environmentally friendly and cost-effective. This partnership will benefit the economy of Vietnam and our company, and we anticipate successful conclusion of this important project," said Phan Tranh Moun, chairman of Hung Thinh.

About Argex Titanium Inc.

Argex Titanium has developed an advanced chemical process for the volume production of high-grade titanium dioxide for use in high-quality paint, plastics, cosmetics and other TiO2 applications. The corporation's unique proprietary process uses relatively inexpensive and plentiful source material from a variety of potential vendors to produce TiO2, along with other valuable byproducts. Argex Titanium's process provides a significant cost and environmental advantage over current legacy TiO2 production methods.

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