Brimm Energy Corp. engaged in preliminary merger discussions: advises there is no assurance an agreement will be reached.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 17, 1996-- Further to its announcement of Sept. 4, 1996, where Brimm Energy Corp. (NASDAQ: BRIMF) appointed a financial advisor to seek out and evaluate opportunities to increase long term shareholders' value, the company today announced it is engaged in preliminary merger discussions with a privately held oil and and gas exploration company.

"Discussions are in a very early stage and there can be no assurance an agreement will be reached. The board of directors is still conducting its due diligence and will be seeking the advice of its financial and legal advisors before entering into a Letter of Intent," stated Daniel J. Brimm, president.

Brimm also stated that it is encouraging that the price of corn has fallen sharply in the last week and as a result major ethanol producers have recently announced that they will be back in production. Brimm's ethanol plant is scheduled, and on track, to reopen in the 4th quarter of 1996. The company and the ethanol industry is also receiving record prices for ethanol due to scarce supply and demand created by the Clean Air Act.

Brimm Energy Corp. is engaged in the manufacturing and distribution of fuel grade ethanol for use as a gasoline additive in the Rocky Mountain and Northwestern regions of the United States.

Ethanol is an alcohol, primarily distilled from grain. A 10 percent ethanol blend with gasoline serves to reduce the carbon monoxide and hydrocarbon particulate emissions of combustion by up to 25 percent, while also increasing the octane rating of the fuel.

On behalf of the board of directors of

BRIMM ENERGY CORP.

Daniel J. Brimm

President and Director

-0-

The contents of this news release have neither been approved

nor disapproved by the Vancouver Stock Exchange or NASDAQ

CONTACT: Brimm Energy Corp.

Daniel J. Brimm, 604/684-4830

604/685-4835 (fax)