Armada Mercantile Ltd.: Update to Company's Change of Business.

Business Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--Oct. 24, 2000

Armada Mercantile Ltd. (CDNX:AAR.) wishes to announce that it continues to proceed with its proposed acquisition of a 50% interest in AVO Media Corp. ("AVO Media") including a controlling position on AVO Media's Board, 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 required documentation to be provided to its shareholders to obtain the requisite approvals for this transaction. The Company and AVO Media are continuing to work together in this regard and both are committed to completing the transaction in a timely fashion.

AVO Media, based in Scottsdale, Arizona, is a unique and creative new media interactive marketing company that 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.

Management of Armada is currently funding an additional $235,000 by way of promissory notes and by the exercise of share purchase warrants. Subject to regulatory approval, Armada will advance these funds to AVO Media Corp. in accordance with the Letter of Intent.

The Company has appointed Mr. Franklin Beninsig as Executive Vice-President, Intellectual Properties and Acquisitions. Mr. Beninsig is a co-founder and managing member of SIPI, LLC (formerly known as Scientific & Intellectual Property Investigations), which provides executive coordinator and consulting services related to mergers, acquisitions and divestitures, litigation, due diligence for business and legal matters, decision-to-market reviews, technology transfer & settlement negotiations, control of legal and consultant costs, information analysis-acquisitions, trademarks, and patent invalidity-validity matters. Mr. Beninsig has developed a worldwide network of affiliations and contacts to assist in business transaction investigations. Additionally, Mr. Beninsig functions as a "transition specialist and executive" in the post due diligence process for mergers, acquisitions and divestitures. On the venture side, Mr. Beninsig is an advisor to several boards of directors where he focuses on medical/biotechnology, entertainment and e-commerce start-up companies based in Northern California. Frank is a U.C. Davis alumni, Agricultural Economics/Business Management and Biochemistry, BS 1981.

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.