September 18, 2006

Mining equipment maker to adopt Hy-Drive system to reduce emissions

Hy-Drive Technologies, in Mississauga, Ont has signed a definitive marketing, distribution and manufacturing agreement with Canadian-based Mining Technologies International (MTI). The agreement calls for MTI's adoption of Hy-Drive's hydrogen generating system (HGS(tm)) technology for use on selected underground and above-ground mining equipment.

MTI will also carry out sales, marketing and manufacturing, plus continuing research and development to enhance HGS features and make them more suitable for the mining market. The company has designated Sudbury, Ont as the location for the manufacturing and research facility. In addition to being MTI's headquarters, the city has hundreds of years of mining history and is one of Canada's most significant mining communities.

MTI manufactures a wide range of mining equipment, including trucks, loaders, underground utility vehicles as well as drilling equipment. Hy-Drive will provide core component parts of its HGS technology, which MTI will use in manufacturing a finished commercial product to specifically suit the diverse sizes and numbers of fuel-burning equipment and vehicles that operate throughout the mining industry. Ongoing research and value-added enhancement work will also take place at MTI's Sudbury facility.

Robert Lipic, MTI president and CEO, noted that recent tests of Hy-Drive's HGS technology showed "tremendous improvements in emissions and specifically, particulate matter when we measured it and compared it to the original tests, it was almost eliminated down to 0.02% and the NOx and CO gases were reduced substantially.

"We believe this technology will substantially change the way we think about the air quality and the conditions of the air and health and safety for people underground as well as on the surface," he said. "With mines in danger of being shut down because of emission concerns, losses to mine owners and shareholders could number in the hundreds of millions. The industry is looking at all options to help reduce harmful emissions and Hy-Drive's HGS represents to us and to our customers a viable solution to help address this growing problem," Lipic added.

MTI purchased and tested 20 HGS units earlier this year, and while the 27% fuel savings surpassed its expectations, "we were much more focused on the emission reduction possibilities that the HGS presented," he continued. Consequently the company has been negotiating to have some of its clients adopt the technology, and "we are presently finalizing agreements to deploy the HGS at four (4) different mine locations," said Lipic

Tom Brown, president and CEO of Hy-Drive, observed that, "in partnership with MTI, we will be able to make a substantial contribution for greater fuel efficiency and reduced emissions in the mining sector, one of the world's fastest growing and one of its most dependent industries. MTI's market-leading position as an equipment supplier to this industry group adds instant credibility for our HGS technology.," he added.

The Hy-Drive system injects small amounts of hydrogen gas into the combustion chamber of a regular internal combustion engine. This creates an enriched air mixture and a faster, more complete burn which in turn reduces emissions, improves fuel efficiency and enhances engine torque. The product is simple to install and can be readily adapted to a variety of internal combustion engines and fuel-air mixtures.

More information is available on the MTI Web site,, or from Tom Brown at Hy-Drive Technologies, 905/542-3024, ext. 300, E-mail, Web site

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