MONTREAL, QUEBEC - Perlite Canada inc. (the "company") announces hereby the results of its second quarter 2008 ended on April 30, 2008.

For that period, total sales were $1,024,569 generating a before-tax loss of $91,943 compared to sales of $1,412,317 and a before-tax income of $114,415 for the second quarter of 2007. For the half-year period, sales were $1,972,465 generating a before-tax loss of $162,829 compared to sales of $2,615,085 as at April 30, 2007 generating a before-tax income of $201,631.

The sales decrease is principally due to the permanent closing of our New Brunswick's plant and the late opening of the St-Pacome plant which forced certain clients to buy elsewhere during that period. Since the end of March, the plant is working and the management is confident that we will catch up sales for the 2009 year. Concerning the before-tax loss of $91,493 for the second quarter of 2008, it is due, in major part, to the diminution of sales due to the late opening of the St-Pacome's plant but also to the higher production costs and freight related to oil products. The Company sets up a price policy related directly to the fluctuation of oil products which would help to increase the gross margin during the next months.

Despite a diminution of sales and income for the second quarter, the company foresees the next months with optimism following the beginning of operations of its new plant in Saint-Pacome.