Pender Capital Corp.- Major Joint Venture With Granicor Inc.

VANCOUVER, British Columbia--(BUSINESS WIRE)--June 1, 1998--

Pender Capital teams up with Canada's largest stone company

The Company is pleased to announce that it has executed a letter of intent to form a new joint venture with Granicor Inc., the main subsidiary of Granigroup Inc. - the largest stone company in Canada, to open a new green granite quarry approximately 100 miles north of Quebec City, Quebec, Canada.

The new quarry, known as the Greenleaf project, has been under development by Granicor for two years. Approximately $1.5 million was spent by Granicor over the past eight years in the evaluation of several new prospective quarries, with the Greenleaf project selected as the number one priority for development. Quarry development and market testing to date has led Granicor to assess that the Greenleaf granite could rapidly become one of the most dominant green granites available in the world market place. Competitive green granites are currently selling at between $700and $1,150 Canadian currency per cubic meter at quarry. Granicor plans to commence production of commercial blocks in June 1998 with targeted production of 1,000 cubic meters in the first year, 3,000 cubic meters in the second year, and, conservatively, 4,000 cubic meters per year thereafter.

The Greenleaf joint venture will be owned 50% by Pender Capital and 50% by Granicor. It will be initially capitalized with $2 million for necessary equipment and working capital. Granicor will contribute all right, title, and interest in the Greenleaf quarry assets at a deemed value of $400,000 plus $600,000 cash. The Company will contribute $1 million cash, which will be funded by way of a new convertible debenture offering or equity private placement. The joint venture will be managed by Granicor personnel under the direction of a board of directors comprised of two nominees from each joint venture partner. The letter of intent with Granicor is subject to completion of due diligence on the Greenleaf quarry by the Company and regulatory approval. A finders fee will be payable upon closing of the transaction.

Granigroup is a private family owned business that has been operating quarries in Canada since the 1920s. It is presently the largest stone company in Canada, composed of eight companies separated into two distinct divisions: quarrying operations and fabricating operations. Granigroup subsidiaries currently operate 15 quarries and own the rights to approximately 150 different granite deposits which may become quarries. Granicor is one of the world's most advanced granite fabricators. It operates four state-of-the-art finishing plants, including 17 gang saws, which equates to the largest granite block sawing capacity in North America.

The Company has identified significant opportunity in the North American stone industry for growth through acquisition and consolidation. The consolidation of the ownership of Garibaldi Granite Group and the formation of the Greenleaf joint venture are its first steps in this strategic direction. It believes that with the successful implementation of this strategy it can become a dominant participant in the North American stone industry.

Upon reviewing this information, Al Budai, Editor of the Buy Low, Sell High! stock market newsletter, one of the most respected independent publications of its kind and the first newsletter to feature Pender Capital in its April 1998 issue, had these uncompensated and unsolicited comments:

"The latest development confirms in my mind that Pender Capital is committed to creating value for its shareholders, and that in short order, management has delivered on its clearly stated intentions to achieve substantial growth through the successful negotiation of joint ventures and acquisitions with other players in the North American stone industry."

"This agreement" said Budai, "with the largest stone company in Canada should go along way toward establishing instant credibility with present and potential investors, and should open the door for Pender Capital to negotiate with larger players within the North American stone industry."

"This very much underfollowed and severely undervalued company appears to be well on its way to becoming one of the dominant players in the North American stone industry." commented Budai.

According to Mr. Budai, "Investors who have been sitting on the sidelines and have not participated in the steady rise in the company's fortunes and stock price may find it an opportune time to re-consider their views on Pender Capital, its strong management, solid asset base and significant future plans." -0- The Alberta Stock Exchange has Neither Approved Nor Disapproved the Information Contained Herein.

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