February 27, 2004

MONTREAL, QUEBEC--Perlite Canada inc. (the «company») announces hereby the results for the period ending October 31, 2003 and the results of its first quarter as at January 31, 2004.

The 2002-2003 fiscal year has been the company’s best since its creation, in respect of both its sales and income. Indeed, sales totalled $4,573,809, representing an increase of approximately 7% compared to the preceding fiscal year, generating a pre-tax profit of $428,470. The company has more than doubled (115%) its sales in the last four years and is experiencing an increase of its sales for a fourth consecutive year. For the first quarter 2004, sales of the company totalled $1,069,522 generating a benefit before taxes of $148,416, compared to $85,657 for the same period of previous year.

The increase in the company’s income during the last fiscal year mainly results from the increase in perlite sales. The increase in the operating margin is explained for the most part by the continuous improvement of its processing methods.

For our 2003-2004 fiscal year, the company intends to continue to refine its processing system, concentrate its efforts on maintaining a satisfactory operating margin and improve on its products range, as well as expand its distribution network to remain the leaders in its fields of endeavour.

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.


-30-

FOR FURTHER INFORMATION, CONTACT:
Perlite Canada Inc.
Richard Barabé
Tel.:(514) 336-6665 / 984-9798
Fax: (514) 336-6651