Globaltex Industry Says Pine Valley Coal Feasibility Study Projects High Rate of Return for Mine.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sep. 25, 2002

High Quality Reserves Expected to Enjoy Strong Market Demand Over

the Long Term; Board Considering Strategic Alternatives to Realize

Value

Globaltex Industries Inc. (TSX-VE:GTX; NASD OTC:GBTXF) announced today that a newly concluded feasibility study of its Pine Valley Coal property, of which Globaltex is majority owner, projects a cumulative after mineral tax cash flow in excess of CDN$85 million over the project's estimated 14-year life, making the property highly economic.

At a 5% discount, moreover, the net present value pre-tax return would approximate CDN$51 million, for an internal rate of return of almost 27%, according to the report prepared by Norwest Corporation, a leading international consulting and engineering firm retained by Pine Valley Coal Ltd.

"This is an exciting report that underscores the validity of the many years and hard work that has gone into developing Pine Valley and justifies the early enthusiasm that high grade, good quality coal exists and that it can be mined economically," said Mark Fields, President and CEO of Globaltex. "There is now no question that the Pine Valley Coal Project is viable, with an attractive rate of return founded on low operating costs, modest capital requirements and improving metallurgical coal prices. Extracts from the feasibility study can be viewed on our web site, www.globaltexinc.com."

He noted that Pine Valley Coal has already received key operating and environmental permits to begin development and construction.

Walter Davidson, Chairman of Globaltex, said that the Company's Board of Directors currently is studying strategic alternatives to determine, among others, whether to obtain financing and go forward in developing the Project, or seek a strategic buyer or partner. "Our focus is clearly on doing what is best for the shareholders, who have been very patient," he added.

The feasibility study estimated initial capital costs of approximately CDN$24.1 million to fully equip the site and begin production. Annual production is planned to average 950,000 tonnes (1,045,000 tons) of coal from open pits with a low strip ratio of clean coal to waste rock of 4.36:1 for the life of mine. The report estimates the operating and processing costs will be CDN$25.09 per tonne of coal production. While using a base case 14-year life, the report also indicated there appears to be significant potential for improvements by increasing the mine life and/or annual production through delineation of increased reserves and utilizing recent processing advancements.

While noting that the long-term outlook for coal prices is a function of global economic conditions and the financial outlook for the steel industry, the feasibility report commented that "the market for coking coal and the market for PCI (pulverized coal injection) coal is stable and continues to expand. The economic and financial conditions affecting the international steel industry are leading to increased demand for PCI coal. Metallurgical coal prices have stabilized and the supply side has seen significant concentrations in the past two years. Based on the product coal specifications, Pine Valley metallurgical coal and PCI coal each have positive attributes that will be of interest to prospective buyers."

The feasibility study represents an update of a feasibility study completed in January 1999, which included geological evaluations, coal processing and plant design evaluations and economics, geotechnical and hydrological evaluations, and environmental studies. The new feasibility study updated the prior study in several important technical and geological respects, in addition to adjusting operating costs and capital requirements to 2002 dollars.

The economic factors used in the feasibility study were as follows for the base case. The coal price for the metallurgical grade production, which is semi-hard coking coal, is US$40.00 per tonne, for the PCI coal US$32.25 and for thermal coal US$28.50 per tonne. The exchange rate used is US$1.00 =CDN$1.55. The production will be comprised of approximately 36% of metallurgical coal, 62% pulverized coal injection ("PCI") and 2% thermal coal. The coal is characterized by its low ash and low impurities content.

Earlier this year, Pine Valley Coal became the first new mine in 20 years to ship coal from British Columbia, when it shipped 84,376 tonnes (93,008 tons) of coal under contract to a Japanese steel maker. Utilization of the Pine Valley coal was reported to be highly satisfactory.

Pine Valley Coal Ltd. is 66.7% owned by Globaltex, and the balance by a Canadian subsidiary of the Japanese industrial company of Mitsui Matsushima. Mitsui Matsushima Canada Ltd. is project sales agent for Pine Valley Coal.

Globaltex also wholly owns the Indin Lake gold property, northwest of Yellowknife in the Northwest Territories, a mine currently inactive but which has demonstrated the presence of high gold grades through successive exploration programs.

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

CAUTIONARY STATEMENT

This news release contains certain "forward looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such risks and uncertainties are disclosed under the heading "Risk factors" and elsewhere in documents filed.