McVicar announces strategic R&D program with Shanghai Institute of Organic C

Trading Symbol: MCV

Hongbo recognizes the scale and growth of the lithium battery market andthe urgency in further developing its two current products to meetinternational demand. Hongbo's current chemical agent quality is sufficientfor the domestic Chinese market as proven recently with a three-year orderfrom China-based Tinci High-Tech. Materials Co. Ltd.

The Shanghai Institute of Organic Chemistry is a member of the ChinaAcademy of Science and is the top research institute in organic chemistry inChina. Hongbo has had a long-standing link to the SIOC for its originaldevelopment of prototype products and for the selection of technologies ofchemical synthesizing based on the standards of high yield, high selectivityand environmental friendliness. Hongbo's key international customer DuPont wasinitially referred and assisted by SIOC. The agreement calls for full accessto the facilities in the institute.

The research capability from the institute will provide efficientexpertise in product development and quality improvement. In addition, withrecent orders for Hongbo's intermediate chemicals for various drugs byinternational companies, the institute will put great effort into developingproduct varieties and quality improvements to satisfy the growing need forconsistent, high quality chemicals.

"This is a great development for our company in establishing a formal,cooperative relationship with an elite research institute in China," commentedDr. Gang Chai, President & CEO of McVicar. "With continued access to theexpertise, facilities and information, we are gaining great advantages overcompetitors for product improvement and invention. This will also enhance theability of our chemical business to expand internationally."

Zhejiang Hongbo Chemical Co. Ltd. is a wholly owned Chinese subsidiary ofMcVicar (Hong Kong) Advanced Material Co. Ltd. which is 51% owned by McVicarResources Inc. through an equity acquisition earlier this year.

This press release contains forward-looking statements which reflect theCorporation's current expectations regarding future events. Theforward-looking statements involve risks and uncertainties. Actual resultscould differ materially from those projected herein. Although we believe thatour expectations are based on reasonable assumptions, we can give no assurancethat our expectations will materialize.

    The TSX Venture Exchange does not accept responsibility for the adequacy    or accuracy of this release.

For further information

Dr. Gang Chai at: 55 University Avenue, Suite605, Toronto, ON, M5J 2H7, Tel: (416) 366-7420, Fax (416) 366-7421,