January 14, 2003

Montréal, January 14, 2003 – PERLITE CANADA INC. ("Perlite") announces the repayment of the 10% convertible debentures (the "Debentures") issued on December 22, 1997 in an aggregate principal amount of $360,000 pursuant to a trust agreement concluded between Perlite and Computershare Trust Company of Canada (the "Trustee") as trustee for the debenture holders. The Debentures have been subsequently partially converted into common shares of Perlite and an amount of $294,032.26 in capital and interests was owed under the Debentures on maturity date. This amount has been duly paid by Perlite which has been discharged of all its obligations under the trust agreement and the Debentures.

Upon repayment of the Debentures, Perlite also received an amount of $35,813.94 representing the cash collateral deposited with the Trustee to partially secure the payment of the Debentures which amount will be used by Perlite as working capital.

The repayment of the Debentures has allowed Perlite to restructure its long-term debts with its main financial institution at better terms than the terms of the Debentures.

Perlite Canada Inc. has become a leading company in Canada in the processing, distribution and sale of perlite and vermiculite, two minerals used in industry and horticulture.

The common shares of Perlite Canada Inc. are listed for trading on the TSX Venture Exchange.

The TSX Venture Exchange is not responsible for the truth or accuracy of this press release.

For further information, contact:

Perlite Canada Inc.
Richard Barabé
Tel.: (514) 336-6665 or 984-9798
Fax: (514) 336-6651