Press Releases, October 31, 2006

MONTREAL, QUEBEC -- Perlite Canada Inc. (the "company") is pleased to announce the conclusion of a perlite and vermiculite supply agreement with Tourbières Lambert Inc. ("Lambert").

Under the terms of the agreement, Lambert has awarded the company exclusivity for its purchases of expanded perlite and vermiculite, which are required in the operation of its peat plant located in Rivière-Ouelle, Quebec. The agreement has an initial duration of 10 years, and is renewable for successive periods of 5 years.

The agreement is conditional on the construction by the company of a perlite and vermiculite transformation plant close to Lambert's peat plant in Rivière-Ouelle during the third quarter of 2007. The new transformation plant will enable the company to supply Lambert with expanded perlite and vermiculite produced according to Lambert's specific needs at an advantageous cost, and to establish a long-term supply strategy.

The agreement consolidates the business relationship between the parties, which has existed for more than 10 years. The company currently supplies Lambert's Rivière-Ouelle plant from its own plant in Baie-du-Fèbvre. The agreement will enable the company to obtain exclusivity for purchases of perlite and vermiculite by the Rivière-Ouelle plant which, according to the company, could translate into an increase of approximately 27% in its sales to Lambert and of approximately 9% in the company's total sales on an annual basis starting in the fourth quarter of 2007. Lambert is a Canadian company specializing in the production and sale of peat. Its Rivière-Ouelle peat plant has been in operation for more than 76 years.

Perlite Canada Inc. specializes 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 has not examined either the adequacy or the accuracy of the information contained in this press release and declines any responsibility with regard to this information.

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