Montreal, September 12^th, 2006

MONTREAL, QUEBEC -- Perlite Canada inc. ("Perlite") announces that it has filed with the TSX Venture Exchange (the "Exchange") and the Exchange has accepted, a notice of intention to proceed with a normal course issuer bid. Under its normal course issuer bid, Perlite intends to purchase up to 764,604 common shares, representing approximately 10% of the public float of the common shares issued and outstanding as of September 9, 2006. As of September 9, 2006, 10,669,059 common shares were issued and outstanding. Perlite will cancel any common shares purchased pursuant to the normal course issuer bid. The purchases may commence on September 18, 2006 and will terminate on September 17, 2007, or on such earlier date as Perlite will have completed its purchases or otherwise decides not to proceed with other acquisitions. Purchases will be made on the open market by Perlite through the facilities of the Exchange in accordance with the Exchange requirements. Perlite will pay the market price of common shares on the Exchange at the time of purchase and no purchases of common shares will be made other than open-market purchases. Perlite has not purchased any of its common shares within the 12 months preceding the date of the current notice of intention to make a normal course issuer bid.

Perlite considers that its common shares are currently undervalued and that repurchasing such shares is a sound business and financial decision and a good and reasonable use of Perlite's cash.

No appraisal or valuation regarding Perlite, its material assets or securities was prepared within the two years preceding the date of the notice of intention to make a normal course issuer bid.

Canaccord Capital Inc. will conduct the normal course issuer bid on behalf of Perlite.