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July 20, 2004

PRESS RELEASE

AMERICAN ELEMENTS INTRODUCES NEW HIGH PURITY HEAVY GADOLINIUM NITRATETM THAT ENHANCES NUCLEAR REACTOR PERFORMANCE

[July 20, 2004, Los Angeles, CA] American Elements announced today the development of a new next generation ultra high purity gadolinium nitrate product. Gadolinium Nitrate has long been used in the maintenance of atomic energy generation facilities. However, the six molecules of water that are a natural part of the gadolinium nitrate molecular structure negatively impact reactor performance by contaminating the heavy water or deuterium in the reactor. American Elements has now developed Heavy Gadolinium Nitrate™, a new gadolinium nitrate molecule in which the six molecules of water (H20) have been replaced with six molecules of heavy water or deuterium (D2O), thus eliminating the dilution effect on reactor performance caused by the introduction of water.

American Elements is a Los Angeles based global manufacturer and developer of engineered and advanced materials with the world’s largest industrial catalogue of rare earth materials accessible electronically at www.americanelements.com. For further information on the new Chinese rare earth tax rates, please contact your local American Elements distributor or American Elements U.S. corporate headquarters at (1)310-208-0551, FAX (1)310-208-0351 or customerservice@americanelements.com.