Chai-Na-Ta Announces Financing Extension.

LANGLEY, BRITISH COLUMBIA--(BUSINESS WIRE)--Oct. 26, 1999--

Chai-Na-Ta (TSE:CC) (OTC Bulletin Board:CCCFF) Chai-Na-Ta Corp. (the "Company") announced today that it has obtained an extension on its $5.0 million operating line to February 29, 2000.

The extension provides the Company with the additional working capital required during harvest operations and will facilitate the marketing of the 1999 harvest.

"We are pleased to have achieved this agreement," commented Chai-Na-Ta President and CEO, Gerry Gill. "The North American ginseng root which we are currently in the process of harvesting represents a huge asset for our Company. This extension is very timely, and will ensure that we have the financial support to maximize returns from this year's harvest."

In the face of on-going difficult industry conditions, the Company continues

to focus closely on efforts to improve its financial position. Mr. Gill added, "We appreciate the continuing support of our lenders. Our focus on financial structuring remains our priority and we are actively exploring new sources of working capital."

Harvesting at the Company's operations in Ontario and British Columbia are progressing on schedule and the marketing of its high quality ginseng root will commence shortly.

Chai-Na-Ta Corp., based in Langley, British Columbia, is the world's largest supplier of North American ginseng. The Company farms, processes and distributes North American ginseng as bulk root, and supplies processed extract powder for the manufacture of value-added ginseng-based products.

This press release contains forward looking statements that reflect the Company's expectations regarding future events. These forward looking statements involve risks and uncertainties, and actual events could differ materially from those projected. Such risks and uncertainties include, but are not limited to, the success of the Company's ongoing research programs, general business conditions, and other risks as outlined in the Company's periodic filings, Annual Report, and Form 20-F.