Globaltex Advances Coal Production.

Business Editors

VANCOUVER, B.C. & POINT LOOKOUT, N.Y.--(BUSINESS WIRE)--April 18, 2001

Globaltex Industries Inc. (OTC:GBTXF)(CDNX:GTX.) is pleased to announce that its Joint Venture Partner in the Willow Creek Mine, Mitsui Matsushima Canada Ltd., has indicated a desire to ship a total of 220,000 tons of coal during calendar 2001.

The first 70,000 tons will be shipped by the end of June. Production for calendar 2002 and 2003 is currently projected to be 440,000 tons and 770,000 tons, respectively. Mitsui Matsushima Co., Ltd., Mitsui Canada's Japanese parent and sales agent to the Joint Venture, has advised Globaltex that it expects to be able to secures sales agreements to meet these projections.

Coal prices have risen dramatically since bottoming out during 2000. Analysts expect this trend to continue as energy demand increases in the face of high natural gas and oil prices. Overall demand in the US continues to rise at unexpectedly high rates. It is well documented that, after a long lull in energy prices due to a variety of factors, demand is beginning to outstrip supply. The Willow Creek Mine features high heat content, low sulfur coal. It is the first new coal mine in to open in British Columbia since 1983. It is expected that the Mine will be a low cost producer due to low stripping ratios (the ratio of waste rock to coal produced during mining operations) in relation to other mines in British Columbia. Competing mines are older and have relatively high stripping ratios. Several mines have closed or are in the process of closing due to high production costs. Most significant producing coal mines in North America have already made forward sales of most, if not all, of their projected production for 2001. This is particularly the case for metallurgical grade coal which is the grade of coal existing at the Willow Creek Mine.

Globaltex is also pleased to announce that it is in the final stages of negotiating the engagement of a major US investment banking firm to assist the Company in a private placement of its securities. The contemplated financing should be sufficient to fund Globaltex' expansion over the next two years. Funding for energy projects in general, and electricity generation in particular is available in an otherwise poor financing environment as Wall Street has come to realize the solid fundamentals of energy-related business projects. The best performing industry groups over the past year include coal producers and independent electric power producers. Coal demand is outstripping supply, leading to higher prices as elaborated on by coal producers and industry analysts. New coal production has been constrained by low prices over the last ten years. The lack of significant new electric power projects in the face of steadily increasing electricity demand in our digital economy has lead to widespread electricity supply shortages. Gas-fi4red electric generation, the heretofore preferred mode of generation, is becoming more and more expensive due to high natural gas prices and a lack of pipeline capacity to deliver new supplies of gas. Some analyst believe that, based on new gas-fired electric power production alone, an increase in pipeline deliverability of 50% will be required over the next five years, a difficult goal at best.

US Electric Power Corporation has made a US $50,000 milestone deposit for the land in Washington State proposed as the site for a new 248 MW electric generating plant. Globaltex believes coal output from its interest in the Willow Creek Mine will be more than sufficient to fuel the proposed power plant for a twenty-year period based on a final mine feasibility study completed by Norwest Mine Services Ltd. in January, 1999 and a recent preliminary power-plant feasibility report prepared for USEP by Nexant, Inc., an affiliate of San Francisco-based Bechtel Corporation. An updated coal production feasibility study, based on the new economics of the coal markets, will be conducted over the next several months.

Based on the output of the proposed electric generation plant, there will be no need for full review by the Washington State Energy Facility Site Evaluation Council. Permit applications will be submitted directly to relevant agencies after preliminary plant design is completed by Nexant. It is currently envisioned that Bechtel will be the primary contractor for plant construction. Permitting is expected to be completed within twelve months. Recently, the operators of a large aluminum smelter have talked of building a coal-fired generator near USEP's proposed site, citing the high cost of natural gas-fired generation. Local officials have also spoken of potential County involvement in either a gas or coal-fired plant in the same vicinity due to the ongoing electricity crisis in the US Pacific Northwest and the viability of the area for such projects. USEP believes that coal-fired-generation is presently the only viable solution to the current and worsening electricity supply situation in the Pacific Northwest. The recent relatively dry winter has called into question the ability of hydroelectric facilities to meet the increasing market demand for electricity. USEP plans on building a state-of-the-art facility with low overall emissions meeting or exceeding all applicable environmental standards. The Company is currently exploring a variety of options regarding carbon dioxide emissions sequestration which is the result of all fossil fuel combustion including natural gas, gasoline, oil and wood. USEP will strive to achieve significant mitigation of carbon dioxide emissions.

About Globaltex: Globaltex is a coal producing company which is in the process of finalizing the acquisition of USEP, a private company which has been working toward the goal of constructing a coal-fired plant in Washington State. Globaltex' management sees electricity generation as a very profitable market for coal produced from its Willow Creek Mine in Northeast British Columbia. The Mine has substantial proven reserves and it is management's intention to develop it into a large producing mine over the next several years.

CAUTIONARY STATEMENT

Statements made in this news release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions ("Factors") which are difficult to predict. Some of the Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: Globaltex and USEP's shareholders may not be able to agree on terms for a definitive acquisition agreement; Globaltex, a public company, may not be able to secure the required approvals from securities regulatory authorities to complete the acquisition of USEP; USEP may not be able to secure the required regulatory approvals for its power-plant project; the due diligence of the above-described Washington State site may find that the site is not acceptable for USEP's power-plant project; national and regional economic conditions in the U.S. and Canada; Canadian currency fluctuations; fluctuations in the price of coal, oil and natural gas; fluctuations in electricity prices; competition from new or existing competitors; changes in and implementation of environmental and other governmental regulations; Globaltex's ability to secure acceptable coal sales agreements; and other Factors disclosed in the Globaltex's public disclosure filings. In general, USEP and Globaltex are subject to the risks and uncertainties of both the mining and electric utilities industries, and of doing business in the U.S. and Canada. The forward-looking statements are made as of this date and the companies undertake no obligation to update them, whether as a result of new information, future events or otherwise.

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.