Destiny Resource Services Corp. - Announce Citibank has Acquired.

CALGARY, Alberta--(BUSINESS WIRE)--Nov. 17, 1998-- Citibank Canada ("Citibank") and Destiny Resource Services Corp. (the "Corporation") announce that Citibank has acquired, through a private placement, warrants to purchase, in the aggregate, up to 3,175,000 of either the voting common shares (the "Common Shares") or the Second Preferred Shares, Series U (the "Series U Shares"), of the Corporation, or any combination thereof, up to 3,175,000 shares. The Series U Shares, are convertible by any Person other than Citibank or its affiliates into Common Shares on a 1 for 1 basis, subject to adjustments in certain circumstances. The warrants are exercisable at a price of $3.15 per share on or before October 31, 2003.

After giving effect to this transaction and recent acquisitions by the Corporation, if all warrants were exercised, Citibank would be entitled to purchase up to 18.45% of the outstanding Common Shares of the Corporation as at the date hereof, but does not intend to hold more than 10% of the issued Common Shares at any time.

The Warrants were acquired in connection with the purchase of a $10,000,000.00 71/2% Subordinated Secured Redeemable Debenture, due October 31, 2003 from the Corporation. Citibank has no present intention to acquire any other securities in the Corporation, other than the Common Shares which may be acquired on the exercise of the Warrants or the exchange of the Series U Shares, and the Series U Shares which may be acquired on the exercise of the Warrants.