Argex Titanium Inc. ARGEF

RE: Joint venture.

[morricone]

I think the Chinese would be more interested in stealing CTL's process to see if they can apply it to their own companies.  As far as selling them product goes we're on the wrong side of North America for that. The demand in North America and Europe is enormous and the transportation distance/cost short compared to China. We'll get a  better price in this part of the world without making the shipping companies rich. The price in China isn't going to be any higher than the price in Pittsburg.

As far as a JV goes you won't get one of the big companies interested unless you're prepared to give away the store.  Besides the cautious step by step way that Argex is moving forward indicates they would want to get the first mill up and running before jumping forward with the others. A true JV is really only something you consider if you're really desperate for a lot of money, expertise and the like and are prepared to share ownership, definitely not desirable in our case. Some kind of a supply agreement with PPG combined with the forthcoming feasibility study should make borrowing money easy for us. We might even be able to borrow it from PPG.