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Solv-Ex Corporation Places $13 Million In Convertible Debt Through JW Charles And Wood Gundy.

ALBUQUERQUE, N.M.--(BUSINESS WIRE)--Nov. 25, 1996--Solv-Ex Corporation (NASDAQ:SOLV) has placed $13 million in debt which is convertible into shares of Solv-Ex Common Stock at a price which is equal to the lesser of $14.50 per share or 82% of the closing bid price per share at a date immediately preceding the date of conversion.

The convertible debt matures on November 30, 1998 and bears interest at 8% per annum payable quarterly in arrears. It may only be converted into shares of Common Stock in increments of one-third of the principal amount outstanding following periods of 45 days, 90 days and 105 days, respectively, after the date of issuance. Solv-Ex said that the conversion price of $14.50 per share was based upon approximately 120% of market price at the time terms were agreed upon.

Solv-Ex said that the company had received numerous solicitations and proposals to provide financing in various amounts during the last several months, some of which it considered to be from questionable sources. The financing announced, which was closed on November 15, 1996, was arranged through JW Charles Securities, Inc. and CIBC Wood Gundy Securities Inc. with off-shore investors in accordance with the provisions of Regulation S under the Securities Act of 1933.

According to Solv-Ex president W. Jack Butler, "It is well known that our capital requirements for the next several years extend beyond the money required to obtain bitumen (heavy oil) production during the first quarter of 1997 from the plant currently under construction on our Bitumount Lease in Northern Alberta. We have confidence in the ability of our oil and mineral extraction technology to perform and we believe that it is in the interests of our shareholders for the Company to position itself for expansion of oil production to capacity and begin production of minerals at the soonest practicable time."

Butler added, "Continued progress in development of our new electrolytic cell for production of aluminum metal from the alumina contained in the fine clays associated with the Athabasca oil sands, together with successful development of a new synthetic mineral product for use in the paper industry, compels us to push forward with continued product development and product manufacturing as soon as possible.

"This requires additional capital. Although Solv-Ex management is aware of concerns regarding the potential dilutive effect of financing activities, we believe this is overshadowed by the potential benefits to be derived by proving the viability of our advanced technology and transforming this technology into profitible operations. Our action should also dispel notions that Solv-Ex cannot raise capital as required to complete its objectives, and we will continue to do so as developments warrant."

CONTACT: Solv-Ex

Dean Gardy, 505/243-7701
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Publication:Business Wire
Date:Nov 25, 1996
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