Armada Mercantile, Ltd.: Update To Company's Change Of Business.

Business Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--Sept. 14, 2000

Armada Mercantile Ltd. (CDNX:AAR.) (the "Company") wishes to announce that it continues to proceed with its proposed acquisition of a 50% controlling interest in AVO Media Corp. ("AVO Media") as previously announced in the Company's news releases of July 5, 2000 and August 11, 2000.

The Company is in the process of completing the requisite documentation to be provided to its shareholders and the CDNX in order to obtain the requisite approvals to this transaction. The Company and AVO Media continue to work together in this regard and both are committed to completing the transaction in a timely fashion.

The letter of intent entered into between the Company and AVO Media required that the Company provide a bridge loan in the amount of US$200,000 to AVO Media. The Company has fulfilled this initial funding obligation.

AVO Media, based in Scottsdale, Arizona, is a unique and creative new media interactive marketing company which uses the Internet as a platform and combines the talent of a multimedia house with exclusive cutting edge technology and product delivery capabilities. On September 17, 1999, AVO Media acquired the exclusive distribution rights to market and distribute the AVO-Card for the United States, Canada and Mexico. The AVO-Card contains up to 32MB (150MB using specialized DVD or compression techniques) of multimedia style information to tell an interactive story involving sounds, graphics, 3D animation, voiceover narrative, video, still images, etc. At 32MB, it can hold up to 11,000 pages of information, 4 minutes of video, or 32 minutes of pure audio. In addition to a dynamic presentation of a client's product or service, the AVO-Card presents a private gateway to the client's website, in fact, to specific locations or pages on the website without having to type any address and without the requirement of any keystrokes by the user. Management of AVO Media is projecting sales of 4.6 million for year 2000.

The Company has received preliminary approval from the CDNX to its proposed private placement announced on August 15, 2000, of 290,900 units for gross proceeds of $290,900. The Company is in the process of preparing and filing the necessary documentation to obtain final approval from the CDNX to close the private placement. All proceeds of the private placement have now been received by the Company. Recently, the Company received an additional $62,000 through the exercise of employee stock options.

On behalf of the Board of Directors Patrick Cole, President

The Canadian Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.