September 30, 2004

MONTREAL, QUEBEC--Perlite Canada inc. (the «company») announces hereby the results for the third quarter 2004 and the nine-month period ended July 31st, 2004.

For the third quarter 2004, the sales of the company totalled $973 963 with an income before taxes of $9 367, compared to sales of $870 983 with an income before taxes of $178,819 for the third quarter of 2003.

For the nine-month period ended July 31, 2004, total sales were $3,827,241, with an income before taxes of $376,541 compared to sales of $3,608,142 with an income before taxes of $452,839 for the corresponding nine-month period of 2003.

Sales for the nine-month period increased by 6% compared to the same period last year. The slight decrease in income is attributable to a large extent to the increase in administration expenses, which include, among other things, the hiring of a firm specialized in investor relations, the hiring of an agent in Ontario and the write-off of a bad debt in one of our customer accounts. These additional amounts total $78,350 in expenses, which did not exist in 2003. However, the hiring of a firm specializing in investor relations and of an agent in Ontario are already bearing fruit both in terms of visibility and total sales.

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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