November 5, 2003

MONTREAL, QUÉBEC – Perlite Canada inc. (the “company”) announces hereby that its Board of Directors authorized the acquisition of the rights held by Coprin Minéral inc. (“Coprin”) under an industrial perlite sale agreement concluded between the company and Coprin on August 12, 1999 (the “industrial perlite sale agreement”)

Under the industrial perlite sale agreement, the company undertook to refer and transfer to Coprin all the requests for industrial expanded perlite from existing or potential clients, work together with Coprin toward expanding the industrial market and, among other things, develop and produce industrial expanded perlite according to Coprin’s specifications. In consideration of the above undertakings, Coprin agreed to work toward developing the industrial market for the expanded perlite produced by the company.

The purpose of the industrial perlite sale agreement was to give the company the opportunity to develop a new market without neither incurring expenses nor investing resources and assets. The Board of Directors considers that the company now possesses all the necessary resources to develop the industrial market by itself and also seeks to restrict the number of intermediaries involved in selling the industrial perlite that it produces.

Consequently, the Board of Directors authorized the company to acquire all the rights of Coprin on the sale of industrial perlite produced by the company and to terminate the industrial perlite sale agreement in consideration of the issuance of two hundred thousand common shares of the company to Coprin.

The consideration has been fixed by the Board of Directors, taking into account: I) Coprin’s work and efforts, ii) the sales amounts of industrial perlite made by the company, which Coprin does not collect and iii) the company’s short-term opportunities to make profits on the sale of industrial perlite.

The transaction is conditional upon approval by regulatory authorities having jurisdiction over the Company's securities

The company expects to fill its first expanded perlite orders for insulating boards within the next few months. The acquisition of Coprin’s rights significantly increases the return on sales of such industrial perlite for the company.

Furthermore, Coprin’s President has been appointed to the Board of Directors of the company in February 2003, thus insuring continuity in the steps taken by Coprin with respect to the industrial market.

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.

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