Chemaphor Inc. announced today that it has been informed by the Atlantic Canada
Opportunities Agency ("ACOA") that ACOA intends to offer a contribution
of up to $2.1 million by way of a loan to fund a research and development project
proposal submitted by Chemaphor to ACOA in October, 2005. Minister of Foreign
Affairs and Minister of the Atlantic Canada Opportunities Agency, Peter MacKay,
publicly announced ACOA's intention to offer funding to Chemaphor this morning
at a press conference held in Charlottetown, Prince Edward Island.