McKenzie Bay International Ltd.: Kelsey Lake Diamond Mine Sold.

Business Editors

BRIGHTON, Miss. & MONTREAL--(BUSINESS WIRE)--Sept. 10, 2001

McKenzie Bay International Ltd (OTCBB:MKBY) has entered into a contract to sell, subject to due diligence, its wholly owned subsidiary, Great Western Diamond Company, to Roberts Construction Company ("Roberts"), a private North Dakota corporation, & BJ&J Ltd, a private Colorado corporation. Great Western owns the Kelsey Lake Diamond Mine near Ft. Collins, CO.

Roberts and BJ&J will acquire Great Western for net book value of all equipment less outstanding debts at time of option. In addition, for a period of five years from the closing date, McKenzie Bay is to receive a royalty equal to 50% of revenue net of expenses based on any diamonds recovered over 10 carats per hundred tons of kimberlite mined based on an average price of $118 per carat. Roberts will be the operator throughout the due diligence period.

The sale of Kelsey Lake allows McKenzie Bay to better position itself for new business opportunities resulting from the advent of new, vanadium oriented, energy storage technologies. Recently, McKenzie Bay has purchased more than 10% of Pinnacle VRB Limited, "PCE" (ASX). 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. 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, via its Canadian subsidiary, is seeking to develop the Lac Dore vanadium deposit located near Chibougamau, Quebec into the first primary producing vanadium pentoxide mine in North America and a major producer of battery grade vanadium oxides. This deposit is North America's largest, the world's second largest and contains a combined proven, indicated and inferred mineable vanadium pentoxide resource of five billion pounds. SNC Lavalin is preparing a feasibility study scheduled for completion in January, 2002, if positive, followed by financing, construction and production.

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.