MR3 Systems Announces Execution of Land Lease for MR3 Taiwan Metals Processing Plant - Reports On Empire Gold Project Progress.

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 28, 2003

MR3 Systems, Inc., (NQB:MRMR) announced today that on January 23, 2003, its affiliate, MR3 Systems Taiwan Co., LTD, executed a 20-year land lease for 2.5 acres of industrial land upon which its 80,000 square foot MR3 Processing Facility will be constructed. Located in the Zhang Bing Coastal Industrial Park south of Taipei, this new MR3 Facility is scheduled to be completed and fully operational by the end of 2003. MR3 Taiwan continues to project $70M in net annual revenues from this plant when it reaches full capacity in 2006. The lease includes an option to purchase the property at any time during the term.

The MR3 plant will process metals wastes generated from Taiwan's electroplating, metal finishing, and printed circuit board industries into high purity specialty metals chemical products such as Potassium Dichromate, Nickel Sulfate, Copper Sulfate and Zinc Sulfate for sale in domestic and international markets.

In addition to the Zhang Bing Facility, over the next 5 years MR3 Taiwan plans to construct at least 3 additional MR3 facilities, and to expand into markets such as soil remediation and incinerator ash treatment. These MR3 plants will be built to accept and treat industrial wastes such as metal hydroxide sludges, fly ashes, spent etchants, and ion exchange regenerants from a wide range of other industries including Plastic Ball Grid Array (PBGA) manufacturing, metal foundries, municipal/industrial trash incineration, surface finishing, semiconductor fabrication, TFT-LCD and other opto-electrical manufacturing.

MR3 Taiwan is the first territorial project of the Joint Venture entered into April 10, 2002, between MR3 Systems, Inc., and Linsa Associates, Ltd., to commercialize the MR3 Technology in Canada, Australia, Asia and the Middle Eastern Territories. Linsa continues to project that within five years the potential annual net revenue from these territories will exceed $500M, which MR3 shares with Linsa on a 50/50 basis. The near term plans for the Joint Venture include further expansion in Taiwan and into the Japanese and Mainland China markets.

Randall S. Reis, MR3's Chairman and CEO, stated "MR3 Taiwan has finally reached this milestone and is proceeding with the construction of its new MR3 Facility. This comes after many months of delays in obtaining equity and plant financing due to last year's difficult investment climate in the global economy. We are looking forward to a more accelerated expansion of our Linsa Joint Venture operations to take advantage of the attractive opportunities available for the MR3 Technology in these markets."

MR3 also reported on the progress of its gold ore processing activities at the Grace Gold Mine Complex in Empire, Colorado, and its MR3 facility to open in Denver, Colorado. On October 23, 2002, the Company entered into an MR3 Metals Extraction Agreement with the owner of the Grace Complex to process over 1,000,000 ounces of gold ore reserves and to share the net revenues from the gold sales on a 50/50 basis. MR3 is on schedule to complete the preliminary tasks of sampling, laboratory testing, gold media development, mining and zoning permits, water rights acquisition, grade control program planning, equipment purchase and Denver Facility build out. Early 2Q03, the Company should complete the equipping and testing of the new MR3 processing plant in Denver and the gravity concentration system for the Empire Site. Weather permitting, MR3 is scheduled to begin processing gold bars in the Denver facility in 2Q03. Once the Empire Project reaches full capacity in 1Q04 the Company expects to be processing approximately 500 ounces of gold per day, equal to annual sales of over $40M at a price of $320. per ounce.

The MR3 Denver facility will be capable of processing several times the amount of ore it receives from the Empire Project. MR3 will actively solicit additional sources of gold and other precious metals in the Colorado area for processing at Denver once the MR3 System is in operation and demonstrating its capabilities. The Company is also exploring other metals opportunities in Nevada, including one potential mine that claims high concentrations of gold, platinum and palladium which MR3 has sampled and begun testing.

In other corporate matters, the Company reports that it is completing its year-end audit and expects to file its amendment to Form 10 with the SEC by the end of 1Q03. MR3 also announced that Larry Hopper, former President and COO, is no longer employed by the Company and MR3 has closed its Pittsburgh, PA, offices. The Pittsburgh functions have been moved and consolidated in the San Francisco and Denver offices. The Company has hired Jody Sitkoski as its new Senior Vice President to manage all domestic operations. According to Mr. Reis, "these moves are necessitated by the Company's change of primary focus to the gold and other precious metals applications for the MR3 Technology. We believe this focus will be substantially more profitable for MR3 than the specialty chemical applications, which will now be licensed out to qualified licensees. Mr. Sitkoski, age 43, is a Denver area resident and a long-time shareholder and consultant to our Company. He has been instrumental in directing us into precious metals opportunities in Colorado and Nevada. He also played a critical role in the Empire Project negotiations and implementation. We are looking forward to his management skills, high energy and ability to work with the technical, operations, partner relations, sales, financial and new business development functions of MR3."

MR3 is a high-tech, state-of-the-art metals extraction and separation technology capable of converting hazardous liabilities into non-hazardous, profitable assets through the processing of industrial wastes and other complex metals sources into pure metals and specialty chemical products. The Company believes this to be the only technology available that can selectively and individually remove and purify all targeted metals from aqueous solutions economically on a commercial scale

Certain statements contained in this press release are forward-looking statements within the meaning of federal securities laws. These statements are based largely on the Company's expectations and are subject to certain risks and uncertainties, many of which are beyond the Company's control. These include changes in the prevailing prices of chemical products and gold, the grade of ore mined and unforeseen difficulties in MR3 processing and mining operations that could affect revenues and costs.