January 2, 2004

This advisory features Perlite Canada inc. (PCI-TSX/VEN.$0.20), a manufacturer and marketer of perlite and vermiculite expecting to grow revenues by 30 per cent in fiscal 2003. Perlite is based in Saint-Laurent, Que. It specializes in the production and marketing of perlite and industrial mineral used mainly in construction, filtration and horticulture. Vermiculite used primarily in horticulture but is also used in construction and insulation. Perlite is the only integrated company of its kind in Canada. It works jointly with other businesses in the development of new perlite-based products including concrete, blockwork and firestop panels. While its activity levels dropped slightly in the third quarter of 2003 compared with the third quarter of 2002, its revenue base in the first nine months of the year grew, translating into a 116 per cent increase in net earnings for the period. This was largely due to cost controls. Construction of a new plant in New Brunswick is nearing completion. The new plant will meet the demand of peat moss producers from Eastern Canada and is expected to boost sales by up to 30 per cent in 2003. Its two existing plants are expected to be operating at full capacity in the fourth quarter. « Perlite is well positioned for growth ». Its earnings per share may hit $0.04 for fiscal 2003 and it trades at just five times projected 2003 earnings.