IBR Obtains Strategic Loan

Canadian Venture Exchange: IBR



Apr 18, 2001, 01:00 ET from International Bio-Recovery Corporation

    VANCOUVER, April 18 /PRNewswire/ - International Bio Recovery Corp.
 ("IBR") reports that the Company has arranged a secured loan of $12.5 million
 Hong Kong dollars (approximately $2.5 million Canadian dollars) from Galaxy
 Power Enterprises Limited ("GPEL") of Hong Kong. This loan, subject to CDNX
 approval, will provide IBR with additional working capital to finance its
 ongoing operations.
     This loan comes at a time when IBR is actively engaged with GPEL and its
 associated companies for the launch of the IBR technology throughout certain
 regions of China.
     As announced on October 30th, 2000, Canada Pacific Sunshine Technology
 Co. Ltd., ("CPST") paid a $330,000 deposit to IBR towards the License Fee for
 the first plant in China. The Company also reported that GPEL is in the
 process of sub-licensing the IBR technology from CPST. "This loan represents a
 significant measure of GPEL's commitment to its business relationship with our
 Company", stated Frank Dixon, IBR President and CEO. "The loan enables the
 Company to raise significant capital without approaching the equity markets at
 a time when they are fraught with volatility and uncertainty. We are pleased
 that our capital requirements have been met without dilution to our
 shareholders and with terms that are beneficial to all parties concerned."
     The terms of the loan include:
 
     1. $12.5 million Hong Kong dollars.
     2. Interest rate at 10% per annum. Interest to be paid monthly.
     3. Term of the loan is 12 months with a renewable option.
     4. The loan is a non-brokered financing with no commissions to be paid.
     5. IBR will grant to GPEL 500,000 warrants exercisable at a price of
        $2.25 per warrant for a period of 3 years.
     6. If any principal payments remain unpaid on the loan after a period of
        12 months, Galaxy may at its option convert any unpaid balance of the
        loan into IBR shares at a price calculated at 15% below market or at
        $2.25, whichever is greater.
     7. In consideration of this loan, IBR will return to GPEL the irrevocable
        Letter of Credit provided by CPST and GPEL which was reported in the
        Company's October 30th, 2000 news release. The Letter of Credit will
        be reinstated at the end of the loan term unless GPEL has commenced
        construction of an IBR plant per the Master License Agreement.
 
     International Bio-Recovery Corporation (www.ibrcorp.com) is an innovative
 environmental biotechnology company leading the way in alleviating the global
 organic waste disposal problem through its proprietary technology that
 efficiently converts biodegradable waste into valuable end products.
     IBR is a publicly listed company trading on the Canadian Venture Exchange
 under the symbol IBR.
 
 
     On behalf of the Board,
 
 
     Frank Dixon,
     President & Chief Executive Officer
 
     The Canadian Venture Exchange has not reviewed and does not accept
 responsibility for the adequacy or accuracy of the content of this news
 release.
 
 

SOURCE International Bio-Recovery Corporation
    VANCOUVER, April 18 /PRNewswire/ - International Bio Recovery Corp.
 ("IBR") reports that the Company has arranged a secured loan of $12.5 million
 Hong Kong dollars (approximately $2.5 million Canadian dollars) from Galaxy
 Power Enterprises Limited ("GPEL") of Hong Kong. This loan, subject to CDNX
 approval, will provide IBR with additional working capital to finance its
 ongoing operations.
     This loan comes at a time when IBR is actively engaged with GPEL and its
 associated companies for the launch of the IBR technology throughout certain
 regions of China.
     As announced on October 30th, 2000, Canada Pacific Sunshine Technology
 Co. Ltd., ("CPST") paid a $330,000 deposit to IBR towards the License Fee for
 the first plant in China. The Company also reported that GPEL is in the
 process of sub-licensing the IBR technology from CPST. "This loan represents a
 significant measure of GPEL's commitment to its business relationship with our
 Company", stated Frank Dixon, IBR President and CEO. "The loan enables the
 Company to raise significant capital without approaching the equity markets at
 a time when they are fraught with volatility and uncertainty. We are pleased
 that our capital requirements have been met without dilution to our
 shareholders and with terms that are beneficial to all parties concerned."
     The terms of the loan include:
 
     1. $12.5 million Hong Kong dollars.
     2. Interest rate at 10% per annum. Interest to be paid monthly.
     3. Term of the loan is 12 months with a renewable option.
     4. The loan is a non-brokered financing with no commissions to be paid.
     5. IBR will grant to GPEL 500,000 warrants exercisable at a price of
        $2.25 per warrant for a period of 3 years.
     6. If any principal payments remain unpaid on the loan after a period of
        12 months, Galaxy may at its option convert any unpaid balance of the
        loan into IBR shares at a price calculated at 15% below market or at
        $2.25, whichever is greater.
     7. In consideration of this loan, IBR will return to GPEL the irrevocable
        Letter of Credit provided by CPST and GPEL which was reported in the
        Company's October 30th, 2000 news release. The Letter of Credit will
        be reinstated at the end of the loan term unless GPEL has commenced
        construction of an IBR plant per the Master License Agreement.
 
     International Bio-Recovery Corporation (www.ibrcorp.com) is an innovative
 environmental biotechnology company leading the way in alleviating the global
 organic waste disposal problem through its proprietary technology that
 efficiently converts biodegradable waste into valuable end products.
     IBR is a publicly listed company trading on the Canadian Venture Exchange
 under the symbol IBR.
 
 
     On behalf of the Board,
 
 
     Frank Dixon,
     President & Chief Executive Officer
 
     The Canadian Venture Exchange has not reviewed and does not accept
 responsibility for the adequacy or accuracy of the content of this news
 release.
 
 SOURCE International Bio-Recovery Corporation