Brimm Energy reports financial results.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Nov. 15, 1996--Brimm Energy Corp. (NASDAQ:BRIMF), a distributor and producer of ethanol in the western United States, reported financial results for the nine months ended Sept. 30, 1996.

All financial results are expressed in U.S. dollars.

In the nine months ended Sept. 30, 1996, Brimm Energy lost $540,036, or $.075 per share, compared to a loss of $168,431, or $.029 per share for the like period in 1995. Revenues decreased by 4 percent to $4.4 million compared to revenues of $4.6 million in the like period in 1995.

The temporary closure of the company's Wyoming ethanol production facility, while maintaining Brimm's ethanol distribution customer base, resulted in a 19 percent smaller 1996 third-quarter loss of $147,529, than the 1996 second-quarter loss of $181,223.

The company continues to generate revenues by distributing fuel-grade ethanol purchased from third-party suppliers through its wholly owned subsidiary, Brimm Energy Inc., to customers in nine Western states. Brimm Energy is obtaining record prices of $1.50 to $1.60 per gallon in its markets for ethanol.

Brimm has successfully upgraded and expanded its Wyoming plant from a 3 million gallon annual capacity, to a 5 million gallon annual capacity and has reopened the plant on Nov. 15, 1996.

Funding for the plant expansion has come from small private placements of equity, exercise of director and employee options under the company's stock option plan, and commercial lenders. The final cost of the expansion is approximately $900,000 significantly below the earlier estimated cost of $1.5 million.

Effective Nov. 15, 1996, the company has arranged for another small private placement of 70,000 units of the company at US$1.75 per unit, with each unit to cover one share and one share purchase warrant with each warrant exerciseable to purchase one additional share of the company at US$1.75 in the first year and US$2 in the second year. The funds will pay for equipment purchased earlier in the year.

The price of corn has dropped substantially from its high levels of $5.50 per bushel early in the year to levels under $3 per bushel. The company has so far purchased approximately 30 percent of its annual grain requirements on fixed-price contracts and is monitoring the market on a daily basis, for its additional requirements.

The U.S. Department of Agriculture is forecasting the third largest corn crop in history at 9.27 billion bushels and record sorghum crops of 800 bushels.

As previously announced on Oct. 31, 1996, Brimm Energy Corp. has entered into a letter of intent with Odyssey International Petroleum which contemplates the acquisition by the company of certain oil and gas interests from Odyssey and/or Odyssey's wholly owned subsidiaries. The company is completing its due diligence and awaiting legal and accounting opinions, valuation by independent engineers and a fairness opinion. The acquisition will be subject to the approval by the board of directors of both Brimm and Odyssey, and approval by the company's shareholders.

About Brimm Energy Corp.

Brimm Energy Corp. is engaged in the manufacturing and distributing 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 corn or other grains. 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, at the same time, increase the octane rating of the gasoline by up to 3 octane points. The effect of the higher octane allows regular gasoline blended with ethanol to be sold at a higher price as a mid-grade gasoline.

Ordinary gasoline engines can use ethanol-blended fuels without modification. Ethanol-blended gasolines are approved by all major domestic and foreign automobile manufacturers under the terms of their new car warranty agreements.

However, following its acquisition of Odyssey interests the company intends to focus its resources more fully on oil and gas exploration and development activities.

The company's common shares trade on the NASDAQ Small Cap Market. -0-

                    BRIMM ENERGY CORP. AND SUBSIDIARIES
                           Financial Highlights
                             Income Statement

                      Nine Months Ended Sep 30, 1996
                              In U.S. Dollars
                      (In thousands except per share)

                          Three months ended      Nine months ended
                                Sep 30,                Sep 30,
                          1996          1995      1996         1995

Sales                    $1,194        $2,228    $4,407       $4,604
Cost of sales             1,207         2,022     4,462        4,435
Gross profit                (13)          206       (55)         169
Operating expenses          134           193       485          337
Income before taxes        (147)           13      (540)        (168)
Net income               $ (147)       $   13    $ (540)      $ (168)
Net income per share                            $(0.075)     $(0.029)
Shares outstanding
 weighted ave.                                    7,202        5,887
Dividends preferred
 shares accrued                                    $187         $131

On behalf of the directors of

BRIMM ENERGY CORP.

Trevor L. Gibbs

Vice-President and Director

The contents of this news release have neither been approved nor

disapproved by NASDAQ

CONTACT: Brimm Energy

Trevor L. Gibbs, 604/684-4830