Hedman Announces Crucial Developments.

TORONTO -- HEDMAN RESOURCES LIMITED (HDM: TSX.V) announced that, further to its news release dated September 9, 2004, the Ontario Securities Commission has revoked its cease trade order.

The company is also pleased to announce a development of international significance to the chrysotile industry in Canada. As reported by Canada News Wire on September 19, 2004, a decision was reached in Geneva, Switzerland not to include chrysotile fibre to the Prior Informed Consent Procedure of the Rotterdam Convention for Certain Hazardous Chemicals and Pesticides in International Trade.

"The potentially positive implications of this cannot be ignored by Hedman," stated Stephen A. Edell, President and CEO. "We intend to closely monitor Canadian federal and provincial government reaction, as well as that of industries worldwide.

"This could well allow Hedman to relaunch the sale of Hedmanite, an asbestos alternative with which the company enjoyed solid sales and increasing market share throughout the 1970s and early 1980s. Hedmanite was derived from serpentine inclusive of chrysotile and was effectively banned, along with other Canadian asbestos/chrysotile products, in or about 1986. If Hedmanite can be safely and compliantly reintroduced to Hedman's product line, coupled with the increasing promise in the fiberization research and development program, Hedman stands to offer a most enviable range of products for a very wide variety of applications."

"This unexpected news could translate into increased value and viability for our Matheson, Ontario crushing facility," commented David Berman, CFO. "Northfil was unable to mature into a successful product. Northfil, originating from Horwood Lake, is an antigorite lacking a naturally occurring fibrous property, which is desirable for industrial applications. Hedmanite, however, rests in our ore bodies proximate to the Matheson crushing facility and, as a lizardite, possesses naturally occurring fibre amenable to a fine crushing for varied industrial uses.

"Therefore, Hedman can now seriously continue with its research and development in fiberizing our Horwood Lake antigorite (which has been tested and reported as free of chrysotile). Hopefully, there may now be an opportunity for the resumption of fine crushing operations at Matheson. Based on this new international development, the company intends to undertake legal and economic viability studies with the goal of resuming crushing at Matheson as soon as practicable. Alternatively, our Matheson crushing facility could prove to be an asset of increased value, even if the company continues in its efforts to sell it, due to the contiguous nature of the lizardite deposits and their historical demonstration as desirable mineral filler. If lizardite can again be mined and crushed on site, this can only lead to a greater utility and fair market value for this corporate asset."

"We have every intention of turning Hedman into the success story of the decade," proclaimed Mr. Edell. "With the ongoing efforts to secure the resumption of free trading, the pioneering research and development in fiberization in partnership with the United States Department of Energy's Albany Research Centre, as well as the welcome possibility of being able to resume operations at Matheson with Hedmanite, a proven product, and other significant initiatives, there is now an exciting period of development ahead of us. While the restructuring period has been most challenging, with much work still ahead of us, we are optimistic that Hedman will soon emerge stronger and truer than was ever believed possible in early 2004."

This document may contain certain forward-looking information and statements concerning the company's operations, performance, and financial condition, including, in particular, the likelihood of the company's success in developing and expanding its business and obtaining significant contracts. These statements are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Errors and omissions excepted.

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

Hedman Resources Ltd. (TSX VENTURE:HDM)