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Polaris enters into a long-term strategic alliance with Cemex

Thursday, September 27th, 2007

Cemex Inc. and Polaris Minerals Corporation announce that they have entered into a long-term supply and distribution agreement for marine transported construction aggregates in the states of California, Oregon and Washington. For this three state area, the parties have agreed that CEMEX will be the exclusive marketer for Polaris and Polaris will be the exclusive supplier to CEMEX of marine transported construction aggregates for CEMEX’s internal use and for sales by CEMEX to third parties. Polaris has already commenced sand and gravel shipments from the Orca Quarry to the two existing CEMEX terminals in San Francisco Bay. In addition, the two companies have entered into an alliance for the development of future construction aggregates import terminals in the same territory.
Included in the strategic alliance is an expectation that Polaris will develop its 70 percent owned Eagle Rock Quarry at a time to be determined by market demand. The parties have agreed to cooperate in the pursuit of markets and terminal capacity for Eagle Rock crushed granite products. The existing Polaris construction aggregate supply and distribution agreement covering the four northern California counties of Marin, Sonoma, Mendocino and Napa is unaffected by this alliance.
“In a market where the long-term availability of construction aggregates is not assured, the realization of this transaction with Polaris secures the availability of high quality aggregates for our customers as well as our affiliate ready-mix operations for many years ahead,” said Gilberto Perez, President of CEMEX USA.
Commenting on this new relationship, Marco Romero, President & CEO, Polaris Minerals Corporation, said, “Since the creation of Polaris, we have focused on three principal elements in order to achieve our business plan: the ownership of high quality and long-term aggregate resources, the securing of cost effective shipping capacity, and the establishment of gateways into the market through strategically located port terminals. Through this landmark agreement with CEMEX, we have made a quantum leap in the third vital component. As a result, we now expect that the anticipated volume of sales through existing terminals, coupled with the expectation of new terminal development in southern California and sales to existing customers, should exceed our earlier sales projections for the Orca Quarry, all at market prices. Additionally, we are closer to making the Eagle Rock Quarry a reality.” He continued, “CEMEX is a leading consumer, producer and distributor of construction aggregates in California and, in common with other major companies in the aggregate industry, relies on the availability of long-term high quality aggregate resources to best serve its customers. At a stroke, both Polaris and CEMEX have achieved many strategic objectives and we look forward to a long and mutually rewarding relationship with our new partner.”

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