Algonquin Mercantile Corporation Announces Financial Reports.

TORONTO--(BUSINESS WIRE)--Aug. 27, 1996--ALGONQUIN MERCANTILE(TSE:AM) Algonquin Mercantile Corporation reports net income of $9.8 million or $1.46 per share for the six months ended July 28, 1996, up from $2.1 million or $0.36 per share last year. Included in the current year earnings is a gain of $7.8 million arising from the sale of Algonquin's interests in Pharmx Rexall Drug Stores Ltd. which closed May 1, 1996.

Sales for the six months were $41 million, down from $51 million (adjusted for the Rexall sale) last year. The decline is a reflection of soft prices in substantially all commodity markets served by Algonquin's produce operations.

As a result of the sale of Rexall, Algonquin has a clean balance sheet with cash and marketable securities in excess of $12 million. Algonquin has begun the process of identifying acquisition opportunities in new areas of business, and will keep shareholders apprised of any developments which arise.

The outlook for the remainder of the year is for profitable performance in continued soft markets. -0-

              3 months ended July 28, 1996 ($ in Millions)

                                  1996            1995

Sales                               22.3          27.2
Earnings before Discontinued
   Operations                        0.5           1.0
Earnings of Discontinued
   Operations                          0           0.1
Gain on Sale of Discontinued
  Operations                         0.1             0
Net Income                           0.5           1.1
E.P.S. (in $)                       0.08          0.16

            6 months ended July 28, 1996 ($ in Millions)

                                  1996           1995

Sales                               41.0          50.8
Earnings before Discontinued
   Operations                        1.9           2.0
Earnings of Discontinued
   Operations                        0.1           0.1
Gain on Sale of Discontinued
  Operations                         7.8             0
Net Income                           9.8           2.1
E.P.S. (in $)                       1.46          0.36

CONTACT: Algonquin Mercantile Corporation

Winston Ash, 905/660-7688