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Raytec Makes Strategic Investment in Sulphur Solutions Inc., Adds Director

VANCOUVER, BC (TSX-V: RAY) (FRANKFURT: XZT) (PINKSHEETS: RAYMF) is pleased to announce the strategic acquisition of a 15% interest in Sulphur Solutions Inc. (SSI), a privately held Alberta Company.
Sulphur Solutions Inc. is an emerging fertilizer company developing a state-of-the-art, patented technology for the production of micronized sulphur from elemental sulphur (a byproduct of gas production activities).
The micronized sulphur is then processed into a premium fertilizer product branded Rapid Release™. Rapid Release™ has been designed to be highly dispersible into an optimum particle size for effective time-release sulphate production throughout the season of application, designed to address general soil sulphur deficiencies and improve nutrient plant availability.
Located in Calgary, Alberta, SSI plans to introduce multiple elemental sulphur processing and sulphur fertilizer production plants over the next few years. The facilities will be portable and located at the site of elemental sulphur production to take advantage of reduced operating costs associated with transporting the sulphur to an off-site processing facility and existing permits for sulphur storage and handling.
SSI's president, Mr. Richard Knoll, has been working with sulphur for the past 10 years and is of the belief that the continuous increasing global demand for food, fiber, and various other agricultural commodities is not sustainable without replenishment of plant nutrients in a reasonably balanced manner. "That includes sulphur," says Knoll. Coinciding with this investment by Raytec, Mr. Knoll has agreed to join the Board of Directors of Raytec Metals.
Mr. Jim Beaton, SSI's agronomic advisor, states, "Fortunately, the need for and implementation of balanced fertilization have received much greater attention in recent years due largely to education by various fertilizer industry organizations. The balance between nitrogen and sulphur is particularly important since the full benefit of one is dependent upon an ample supply of the other." Based on nitrogen demand alone, SSI believes there is ample market for a sulphur product like Rapid Release™. The International Fertilizer Industry Association's forecast of world demand for fertilizer nitrogen in 2008 is 101,760,000 tonnes with an estimated increase to 107,000,000 tonnes by 2011. Assuming a nitrogen to sulphur ratio of 12 to1 is required by most crops, the global fertilizer sulphur requirement in 2008 is estimated to be 8,480,000 tonnes, increasing to 8,917,000 tonnes by 2011.
Cost of the acquisition is a total of C$1.5 million payable on or before September 12th, 2008 upon certain milestones being reached. The agreement also provides Raytec with the first right of refusal to participate in future private financings and that right is transferable.

On behalf of the Board,
RAYTEC METALS CORP.
Brian Thurston, President