McKenzie Bay International Ltd: Ownership In Vanadium Energy Storage Technology Company Increased To 10.16%.

Business Editors

BRIGHTON, Michigan, & MONTREAL--(BUSINESS WIRE)--July 23, 2001

McKenzie Bay International Ltd, (OTCBB:MKBY) "MKBY" (otc-pinks) has acquired an additional 639,229 Ordinary Shares plus 123,538 Ordinary Share Options of Pinnacle VRB Limited, "PCE" (asx) via open market purchases on the Australian Stock Exchange, for a total holding equal to 10.16% comprised of 5,204,229 Shares plus 426,508 Share Options exercisable at A$0.20/share.

McKenzie Bay will exercise all share options on or before July 31, 2001 and continues to acquire Pinnacle Shares as a long-term investment and a cornerstone to its involvement in the emerging vanadium energy technology industry.

Pinnacle is the owner of the Vanadium Redox Battery "VRB", Vanadium Energy Storage System "VESS" and Vanadium Electrolyte technologies and is in the process of marketing these technologies worldwide. Limited licenses for Japan have been granted to Sumitomo Electric Industries  and Mitsubishi Chemical Corporation  including their partner Kashima Kita Power Company. A restricted Africa license has been granted to Vanteck Technology Corp. VRB'S are proven electrical energy storage fuel cells that employ 'Redox Flow' cell technology. Currently, there is no alternative cost-effective means of storing electricity.

McKenzie Bay intends to vote against the following items at the upcoming Extraordinary General Meeting of Pinnacle shareholders on August 13, 2001: (1) Re-election of the following Directors - R. John Fraser, David A. Lenigas, Rodney N. Duncan & Dr. John M. Hawkins; (2) Vanteck marketing transaction; and (3) On market acquisition of Pinnacle shares by Federation Group Limited.

Further, McKenzie Bay will not accept the proposed tender offer by Vanteck, when and if submitted.

Vanadium fuel storage cells, "VRB's", require six metric tons of high purity, battery grade, vanadium oxides per mega-watt hour battery. For optimal performance, it is necessary that the vanadium oxides contain low levels of impurities such as silica and chromium.

McKenzie Bay is seeking to develop the Lac Dore vanadium deposit located three hundred miles North of Montreal, Quebec, Canada near Chibougamau, Quebec into the first primary producing vanadium pentoxide mine in North America and a major producer of battery grade vanadium oxides. SNC Lavalin is preparing a feasibility study, if positive, followed by financing, construction and production. Lac Dore is capable of producing high purity, battery grade, vanadium oxides based on a review of prior metallurgical studies by D. Stuart Bradbury, South Africa vanadium recovery expert.

McKenzie Bay, via its Canadian subsidiary, owns Lac Dore, North America's largest vanadium deposit, second largest in the world, which contains a combined proven, indicated and inferred minable vanadium pentoxide resource of five billion pounds. Soquem Inc., a division of SGF Mineral Inc, which is a subsidiary of Societe generale de financement du Quebec ("SGF"), has the right to acquire a 20% interest in the Project upon acceptance of a positive bankable study.

This press release contains 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.