RE TRANSMISSION: Normiska Corporation Company Announcement

MISSISSAUGA, ONTARIO--Normiska Corporation (CDN - NORP) is pleased to announce the signing of the formal purchase and sale agreement to acquire the operating assets of V.I.L. Vermiculite Inc. (an arms length company). The transaction is anticipated to close in mid-January. V.I.L., which was founded in 1920, manufactures horticultural grades of vermiculite and perlite and is the largest supplier of these products in Eastern Canada. The V.I.L. facilities are located in Lachine, Quebec.

The agreed purchase price for the VIL operations is $2,700,000. $540,000 of the purchase price will be satisfied by the issuance of common shares of Normiska, of which 40,000 shares have been issued on deposit, valued at the 10 day weighted average trading price prior to closing. The balance of the purchase price, payable in cash, will be funded with a combination of debt and equity. The company has arranged debt financing with the Laurentian Bank of Canada for $2,000,000, repayable over 48 months at a rate of prime + 1.75%, and has engaged Goepel McDermid Inc. to raise a minimum of $503,500, through the issuance of special warrants convertible into common shares, each special warrant convertible into one common share at a price of $0.95 per share for a period of 180 days upon clearance of the prospectus, to satisfy the purchase price. Mr. Peter Lewis, the President of V.I.L Vermiculite Inc. (V.I.L.), has agreed to provide consulting services to Normiska following the acquisition for a period of five years following the acquisition.

On behalf of the board,
John Arnold, Chairman and C.F.O. David B. Graham, President and C.E.O.
FOR FURTHER INFORMATION PLEASE CONTACT:
Normiska Corporation (905) 212-9555