the financial year ended February 28, 2001.

Loss from its operations was $3,040,000.

During the year the company continued to devote its resources to the commercialisation of its patented process for manufacture of precipitated calcium carbonate from industrial and other waste lime.

Research and development costs increased from $1,745,000 the previous year to $2,226,000.

These relate to the company's projects in Norway and Germany and the extension of its feed material sample testing programme and development of its product variety.

Proxies have been sent to shareholders of record for the annual general meeting to be held in Bermuda June 14, 2001.