Chai-Na-Ta Refinances Debt With Its Three Major Lenders.

LANGLEY, British Columbia--(BUSINESS WIRE)--March 2, 1999-- Chai-Na-Ta Corp. (NASDAQ:CCCFF) (TSE:CC.) Chai-Na-Ta Corp. (NASDAQ - "CCCFF", TSE - "CC") President and CEO, Gerry Gill announced today that the Company has finalized the terms of loan extension and renewal agreements with its three principal lenders, John Hancock Mutual Life Insurance Company, the Hongkong Bank of Canada, and HSBC China Fund.

Chai-Na-Ta (Asia) Ltd.'s $4,589,670 USD loan with HSBC China Fund Limited which matured on October 16, 1998, has been extended for an additional three years. Under the renewal terms, principal payments of $500,000 USD are required in the 1999 fiscal year, plus additional principal payments over the remainder of the loan, with a final payment of $2,089,670 USD on October 16, 2001. Interest on the new loan is 8 percent per year, to be paid semiannually on April 16 and October 16. In addition, the Company will issue HSBC 16,000 share purchase warrants which may be exercised at a price of $3.50, for each six months that any part of the loan is outstanding. If the loan remains outstanding for a full three years, a total of 96,000 warrants could be issued to HSBC. Chai-Na-Ta has the right to force the conversion of these warrants into common shares if they trade at not less than $7.00 per share for a minimum of 20 trading days.

In addition to the loan extension, the Company has also successfully renewed its $5,000,000 CDN operating line of credit with the Hongkong Bank of Canada which expired on November 15, 1998. Interest on the line of credit is prime plus one percent. The credit facility will be reviewed by the Bank on a quarterly basis beginning February 28, 1999.

Lastly, the John Hancock Mutual Life Insurance Company has agreed to waive principal payments due on their senior notes until June 18, 2001, the due date of the $20,000,000 loan borrowed on June 18, 1996. They have also agreed to waive certain financial and operating covenants until November 30, 1999. The interest rate on the senior secured notes rose from 10.6 percent to 18 percent, however, the Company can elect to pay 10.6 percent in cash semiannually, or the full amount of interest. Should the Company pay the lower interest rate, Hancock can choose to have the 7.4 percent difference paid in common shares priced at the previous 30 average trading days, or capitalize the 7.4 percent interest portion by adding it to the balance of the loan due June 18, 2001. Under the Amending Agreement with Hancock dated November 17, 1999, the total amount of principal payments deferred is $13,333,333 CDN.

"We appreciate the ongoing support shown by the Company's three major lenders at this time" Mr. Gill commented. "As commodity prices are still low, however, we are exploring other financing opportunities in the event that we require additional working capital for the 1999 fiscal year. In addition to seeking new financing, we are also in the process of restructuring our operations to minimize expenses and bring ourselves into a better financial position." Mr. Gill added, "Once we have stabilized our financial position, we will focus on our core competencies and the delivery of new products into the US."

Chai-Na-Ta Corporation, 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.

For a copy of the Company's annual report, please call toll-free worldwide: [phone]