McKenzie Bay Increases Strategic Ownership In Vanadium Energy Technology Company.

Business Editors

BRIGHTON, Michigan--(BUSINESS WIRE)--May 3, 2001

McKenzie Bay International Ltd, (OTC:MKBY) "MKBY"[otc-pinks] http://www.mckenziebay.com, has acquired an additional 1.15 million Ordinary Shares of Pinnacle VRB Limited, "PCE" [asx] http://www.pinnaclevrb.com.au, for a total holding of 3.9 million Shares - 7.1%.

All Shares have been acquired via open market purchases on the Australian Stock Exchange at an average cost of Au$0.56 per share.

Pinnacle is marketing the Vanadium Redox Battery "VRB" and Vanadium Energy Storage System "VESS" worldwide. VESS is an electrical energy storage system that combines rechargeable fuel cells "VRB's" with redox flow cell technology. Currently, there is no alternative cost-effective means of storing electricity.

McKenzie Bay is seeking to develop Lac Dore, North America's largest vanadium deposit, second largest in the world, containing a combined proven, indicated and inferred minable vanadium pentoxide resource of five billion pounds, into the first primary producing vanadium pentoxide mine in North America and a major producer of battery grade vanadium oxides.

McKenzie Bay owns Lac Dore. Soquem Inc., a division of SGF Mineral Inc, which is a Subsidiary of Societe Generale de Financement Province de Quebec, has the right to acquire a 20% interest in the Project upon acceptance of a positive bankable study.

The statements made in this press release, which are not historical facts, contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement. In addition, the description of past or present performance as to any person is not an indication of future performance or success. The company will remain dependent upon obtaining future financing to support its continued growth and development, and to successfully implement its business plan.