Morgan McCutcheon of IMERYS Kaolin Mine, Sandersville, GA. First Anniversary Update - September 23, 2003

"First year net profits from operating the FLUMP at one of our kaolin lagoons were approximately twice our cost in the FLUMP. Current yield: 146 dry tons per day and 300,000 – 400,000 gallons per day of re-use water. We achieved 108% of our first year production goal. Our initial goal of 5% waste slurry into our “Blunger” blend is currently running well ahead at 15% and is only limited by the plant’s current filtering system. The factor is based on the residual salts created by 30 years of Alum flocculants."

"At the current rate of production the FLUMP Slurry Removal System will produce an annual dollar savings of approximately four times our cost in the FLUMP."

As reported to Brad M. Kaplan, Regional Sales Manager, October 1, 2003