original portugal contract

VIROTEC INTERNATIONAL LIMITED 2002-07-26 ASX-SIGNAL-G

HOMEX - Brisbane

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Virotec International Ltd (ASX/ AIM: VTI) announces that it has
signed its first contract for mine-site remediation work in Europe.
The contract calls for Virotec to treat an acid-mine-water body at
Agua Forte near Aljustrel in Southern Portugal, for "EXMIN"
(Companhia de Industria e Servicos Minieiros e Ambientais SA).

Executive Chairman, Mr Sheeran states, "Although this is a small
contract, the Company views it as significant as it allows us to
demonstrate that we can treat heavily contaminated water at a cost of
2,850 Euros ($AUD 5,250) per mega litre. We know of no other
technology that could, practically or economically, clean this water.
The contract is also significant because it completes an extensive
due diligence process undertaken by EXMIN and clearly demonstrates to
EXMIN, EDM (Empresa de Desenvolvimento Mineiro, SA), and the
Portuguese Government, the efficacy and appropriateness of Virotec's
technology for future remediation work.

Virotec believes that the successful completion of this contract will
open up further opportunities which should lead to the company
treating many significantly larger, abandoned water bodies in
Portugal. We believe there are excellent opportunities to convert
many millions of litres of dead water into living water and to supply
useable water for irrigation and other purposes in a country with
substantial water shortages."

Specialising in geosciences, engineering and environmental science,
EXMIN is the principal company responsible for rehabilitating
abandoned mine sites in Portugal under the auspices and leadership of
the Ministry of Environment (Rehabilitation Programme for Abandoned
Mining Sites - PRAAMA).

EXMIN is also part of EDM Group, the public company that represents
the interests of the Portuguese State in the mining sector. EDM was
established in September 1989 following the privatisation of the
Portuguese State owned sector and today EDM is the major shareholder
in, among others, SOMINCOR, PIRITES ALENTEJANAS and EMPRESA NACIONAL
DE URANIO, which are involved in copper, tin, zinc, lead, uranium and
industrial minerals mining operations in Portugal.

Portugal has a mining tradition going back thousands of years,
clearly substantiated by the existence of countless tailings dams,
mining ponds and remains of abandoned mining operations. Some of the
mining operations were developed during the industrial revolution,
from the last quarter of the 19th century to the middle of the 20th
century, and are characterised by the intensive development and
environmental neglect that was the practice at the time.

The Agua Forte water is the most highly contaminated AMD water
Virotec has ever analysed (see table below). Virotec has committed to
treat the 20,000 cubic metre water body to Portuguese wastewater
standards as defined in regulation DL 236/98, annex XVIII.

The treatment will involve the sequential use of three new ViroMine
reagents (Neutra B(TM), Acid B(TM) and Acid-B Extra(TM)), developed
by Virotec from Bauxsol(TM) technology for use in mine-site
remediation. The project will be conducted with TerraPlus Engenharia
do Ambiente e Fiscalizacao Lda ("TerraPlus")

Successful completion of the EXMIN contract will be worth
approximately 57,000 Euros (approximately $AUD 105,000).

The following analysis highlights the extreme degree of
contamination:

PARAMETER BEFORE TREATMENT TARGET AFTER
TREATMENT

pH 2.35 8.0 - 8.5

ALUMINIUM (mg/L) 990 <1.00
ARSENIC (mg/L) 9.6 <1.00
CADMIUM (mg/L) 1.4 <0.1
CHROMIUM (mg/L) 0.3 <0.02
COBALT (mg/L) 3.9 <0.02
COPPER (mg/L) 250 <0.2
IRON (mg/L) 4,620 <0.2
MANGANESE (mg/L) 84.1 <2.0
NICKEL (mg/L) 1.2 <0.2
LEAD (mg/L) 0.56 <0.05
ZINC (mg/L) 560 <5.0

For further information go to www.virotec.com