Hydromet Environmental Recovery Ltd. Announces Negotiations For Additional $1,260,00 In A Second Round Of Financing

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For Immediate Release

Hydromet Environmental Recovery Ltd. Announces Negotiations For Additional $1,260,00 In A Second Round Of Financing

CANADA, Jun. 11 -/E-Wire/-- HYDROMET ENVIRONMENTAL RECOVERY LTD. (Company) (CDNX: YHM.A) is pleased to announce that it is in the final stages of completing the first round of financing, scheduled to close in June 2001. Under the terms of this convertible debenture financing, the Company shall receive a minimum amount of $ 1,570,000, and up to a maximum amount of $ 2,500,000. The terms and conditions of these convertible debentures were announced in the Press Release of April 18, 2001.

Under the terms of the first round of financing, Hydromet has the right to request additional funding on a best efforts basis. Hydromet is currently negotiating several new private placements with arms length parties for a total of $1,260,000 of convertible debentures of Hydromet. The debentures shall be for a term of three years, and are convertible into 9,000,000 Units of Hydromet.

Each Unit of Hydromet consists of one (1) common share of Hydromet and a two thirds (2/3) share purchase warrant. The Unit is priced at $0.14 for the first two years and at $ 0.19 for the third year. Each full warrant entitles the holder to acquire one additional share of Hydromet at a price of $0.17 per share for a term of two years following the closing of the transaction. The placements are expected to close upon the receipt of conditional approval from the Canadian Venture Exchange.

Hydromet is preparing to commence operations at its 66,000 square foot hazardous waste facility at Newman, Illinois, to recover tin, selenium, platinum, and palladium metals from waste materials to be shipped to the company from various steel companies, circuit board manufacturers and mining company byproducts. Subsequent to the first round of financing, Hydromet has been approached, and is in confidential negotiations, with potential suppliers of additional materials recently mandated to be treated only at hazardous waste facilities. To be able to accommodate these new prospective contracts, Hydromet would need to make additional capital expenditures at the Newman Illinois facility. Hydromet would use the proceeds of this proposed $ 1,260,000 convertible debenture financing to pay for the required capital expenditures at the Newman, Illinois plant, as well as expanding the ship loading facilities at the Company's Santa Rosalia, Mexico operations.

Hydromet Environmental Recovery Ltd.

http:// www.hydrometcanada.com

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