Covol Technologies proposes iron resource recovery facility.

LEHI, Utah--(BUSINESS WIRE)--Sept. 11, 1995--Covol Technologies (OTC/BB:CVOL) is proposing to construct a resource recovery facility which will use iron rich materials in the form of iron oxide from steel mills and other sources as raw materials, and with its patented process, convert this material to a product similar to high quality pig iron.

Covol has retained Lockwood Greene Engineers to prepare a feasibility study of the proposed project. The study covers the engineering and economic soundness of the project and includes evaluating the planned reduction process, estimating construction and operating costs, evaluating the sources and costs of raw materials, and determining the market value of the final product.

The facility is being designed to produce 220,000 liquid tons of a low residual metal product annually. The plant will consist of a briquetting line, two 40 ton electric arc furnaces, a pig casting machine, and other ancillary equipment. The plant will be located at a site determined by a site selection committee.

The plant is expected to cost between $28 million and $32 million and will take between 13 and 19 months to construct. The plant can be constructed faster and for a lesser cost by purchasing used equipment.

The plant is projected to employ 50 people when completed and in operation. The plant is expected to fill the increasing need for high grade low residual metal required as feedstock in electric arc furnace (EAF) steel mills.

This need has been created by several factors including the growth in the number of EAF mills in the United States, a strong global demand for steel, and a strong demand for scrap materials.

Lockwood Greene conservatively estimates the market value of the pig iron produced from this facility to be $165 per ton, which would produce annual revenues of $36,300,000 million. Lockwood Greene has estimated production cost at $112 per ton or about $25 million, which would generate an annual operating profit of $11,550,000.

Raw materials or feedstock for the plant would be obtained from steel mill waste materials which have a high iron content value, swarfings, grindings, and shavings produced from automotive manufacturing facilities, and several sources of magnetite which have high iron content. The feedstock materials would be shipped by rail to the plant site.

Covol intends to construct four additional plants in the United States including Alabama, Pennsylvania, Indiana and Illinois. Lockwood Greene has developed a construction program for the design and construction of the five plants over a three year time period.

The construction costs and operating costs have been adjusted to reflect each region where the plant is to be located. Lockwood Greene estimates the capital requirements for the construction program would be $150 million and would produce an annual operating profit of $60 million after all plants are in operation.

Covol Technologies is a technology development company focused on recycling yesterday's waste into tomorrow's resources.

CONTACT: Covol Technologies Inc., Lehi

Rob Dahl, 801/768-4481; Fax: [phone]