News Release

FOR IMMEDIATE RELEASE: December 21, 2005, 8:00 A.M. Eastern Standard Time

CONTACT:
John T. Day, President/CEO
Dennis P. Gauger, CFO
Nevada Chemicals, Inc.
801-984-0228

Nevada Chemicals’ Joint Venture Company, Cyanco, Considers Calcium Cyanide Production at Winnemucca, Nevada

SALT LAKE CITY—(BUSINESS WIRE)—December 21, 2005 – According to John T. Day, President and Chief Executive Officer of Nevada Chemicals, Inc. (NASDAQ/NMS:NCEM) in the December 19th issue of the Chemical Market Reporter, a widely-read, weekly chemical industry publication, the following was cited: “Cyanco is exploring the viability of producing liquid calcium cyanide at its facility near Winnemucca, Nevada, where it already produces liquid sodium cyanide. Citing the abrupt and sustained increase in raw materials, Cyanco said it is investigating possible ways to help the local mining community control cost increases for the chemical. For years, calcium cyanide has been used to leach gold in South Africa, with gold recoveries essentially equivalent to sodium cyanide. In addition, some within the gold mining community report that the use of calcium cyanide as a lixiviant, rather than sodium cyanide, reduces the cost of rinsing and decommissioning heap leach pads.”

Today the cost of caustic soda (sodium hydroxide), a principle raw material in sodium cyanide, is four to six times more expensive than lime used in calcium cyanide. The price of caustic soda is highly dependent on the cost of energy and therefore reflects the recent increases in electricity and natural gas. Day cautions that Cyanco has not made a decision regarding production of calcium cyanide but the on-going study looks promising.


Note: The foregoing contains “forward-looking” statements that are pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Editors and investors are cautioned that forward-looking statements involve risks and uncertainties that may affect the Company’s business prospects and performance. These include, but are not limited to, economic, competitive, governmental, technological and other factors discussed in the Company’s reports to shareholders and periodic filings with the Securities and Exchange Commission.


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