McVicar announces $15 million private placement


    Trading Symbol: MCV

    TORONTO, Jan. 9 /CNW/ - McVicar Resources Inc. ("McVicar") is pleased to
announce that it has engaged Research Capital Corporation and CIBC World
Markets Inc. to act as co-lead agents of a syndicate that also includes GMP
Securities L.P., Desjardins Securities Inc. and Jennings Capital Inc. on a
private placement of CDN$15 million in units at an issue price of $2.30. Each
unit will be comprised of one common share and one-half of one common share
purchase warrant upon terms to be fixed prior to closing. Each whole warrant
will entitle the holder to purchase one additional common share. The financing
will be done on a best efforts basis. All securities issued pursuant to the
private placement will be subject to a four month hold period from the closing
of the financing.
    Proceeds of the offering will be used to fund the operations and
expansion of the Company's chemical divisions, Zhejiang Hongbo Chemical Co.
Ltd. and Hongzhou Changlong Chemical Co. Ltd., which are both located in
    The syndicate of investment firms will receive a 6.5% cash commission and
warrants to acquire an amount equal to 6.5% of the securities sold pursuant to
the transaction on closing. Closing of the private placement financing is
subject to TSX Venture Exchange approval.

    About McVicar

    Headquartered in Toronto, Canada, McVicar Resources Inc. is a diversified
holding company, having interests in companies operating in the People's
Republic of China. McVicar's operating companies include: Zhejiang Hongbo
Chemical Co. Ltd., Hongzhou Changlong Chemical Co. Ltd., and Sino Lion Nanjing
Ltd, all of which are specialty chemical companies serving the personal care,
pharmaceutical and industrial markets, and Jite Technologies Inc. (TSX Venture
Exchange: "JTI"), a manufacturer of electronic and electrical connection
devices for the security, industrial control, automation, telecommunication,
and power supply industries.

    This press release contains forward-looking statements which reflect the
Corporation's current expectations regarding future events. The
forward-looking statements involve risks and uncertainties. Actual results
could differ materially from those projected herein. Expectations are based on
reasonable assumptions and the company can give no assurance that our
expectations will materialize.

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

For further information:

For further information: Dr. Gang Chai, 55 University Ave., Suite 605,
Toronto, ON, M5J 2H7, Tel: (416) 366-7420, Fax: (416) 366-7421,

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