Cypress Energy Inc. Announces Revised Bid for Canadian Jorex.

CALGARY, ALBERTA--(BUSINESS WIRE)--AUGUST 27, 1996--CYPRESS ENERGY INC.(Alberta Stock Exchange: CYZ.A ) Cypress Energy Inc. and Canadian Jorex Limited announce that they have entered into a revised agreement providing for an offer to purchase all of the outstanding common shares of Jorex at a price of $0.72 cash per share or upon the election of shareholders, 0.36 of a Cypress share for each Jorex share to a maximum of two million Cypress shares. Cypress intends to mail a notice of variation and extension to all registered Jorex shareholders on August 27, 1996. The revised offer will expire on midnight, local time September 6, 1996.

The Board of Directors of Jorex has approved the offer and intends to recommend that Jorex shareholders accept the offer. Jorex has agreed to pay Cypress a fee of $0.04 per share ($645,000) if another take-over proposal is completed. An additional cash payment of $50,000 has been paid as an inducement to make the revised offer. Jorex has agreed to return the $150,000 deposit paid by Cypress on July 26, 1996 and grant to Cypress a security interest in the assets of Jorex to secure the payment of the break fee. Jorex has agreed not to provide to any party other than Cypress further break fees or payments unless the cash consideration is in excess of $0.78 per share.

A major Jorex shareholder representing approximately 53.1 percent of the fully diluted outstanding shares has agreed to tender its shares to the revised offer and provide to Cypress 25 percent of any proceeds it receives from any other take-over proposal in excess of $0.63 per Jorex share.

Griffiths McBurney & Partners is acting as financial advisor and dealer manager for the offer.

Neither The Toronto Stock Exchange nor The Alberta Stock Exchange has approved or disapproved the information contained herein.

CONTACT: Cypress Energy Inc.

Donald F. Archibald, 403/262-8225

or

Canadian Jorex Limited

Peter T. Kinsey, 403/266-0930