AGRI-FOOD EQUITY FUND INVESTS IN BIG QUILL RESOURCES INC.

Released on May 12, 1999

Premier Roy Romanow and Agriculture and Food Minister Eric Upshall

today announced the Agri-Food Equity Fund (AFEF) has invested $1

million to assist in the expansion of Big Quill Resources Inc., a

potassium sulphate producer located near Wynyard.



The announcement was made at the official opening of a major expansion

of Big Quill's plant. The plant has a workforce of nearly 50,

including an additional eight required due to the expansion. It also

provides an additional 30 jobs indirectly through the goods and

services it purchases locally.



The Premier said Big Quill is a success story that is a model of how

successful enterprises in the hands of local investors and

entrepreneurs can be conceived, initiated and developed into

successful maturity. "The people of this community saw an opportunity

and you were willing to work to make that dream come true," Romanow

said. "You have built this business the Saskatchewan way with

enterprise, courage and optimism. And by working together.



The expansion is the fourth since a group of employees purchased the

facility from the Potash Corporation of Saskatchewan in 1991 and

established Big Quill Resources Inc. The addition opened today brings

Big Quill's annual capacity to 50,000 tonnes a year, compared with the

initial capacity of 7,000 tonnes a year in 1991.

The company expects further expansions will bring its capacity to

200,000 tonnes a year within five years. That would make Big

Quill one of the largest producers of potassium sulphate in the

world. It is already the largest in Canada and the second

largest in North America.



Big Quill's product is marketed throughout North America and

overseas for use in gypsum wallboard, as fertilizer and as a

chemical feedstock. A byproduct of the manufacturing process is

high-grade salt that will be sold as a water softener grade

product.



The Agri-Food Equity Fund in syndication with CUCORP Financial

Services, the commercial lending arm of Credit Union Central,

have financed the expansion of Big Quill Resources. "The fact

that AFEF and CUCORP were able to work together to develop a

made-in-Saskatchewan financial package for Big Quill illustrates

how AFEF can work to create economic development," Upshall said.



Upshall said that AFEF's involvement is an investment not a grant

or loan and that a return is expected from the investment. AFEF

assists innovative small to medium-sized companies that add value

to Saskatchewan agriculture. Since it was established in 1994,

AFEF has made 24 investments totaling $13 million in 19

companies. Of the companies invested in by AFEF, 14 are located

in rural Saskatchewan.



"We think that is an extremely important factor because it

indicates the program is helping rural communities to grow and

prosper," Upshall said.



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For more information, contact:



Kim Lonsdale

Agri-Food Equity Fund

Saskatchewan Agriculture and Food

Regina

Phone: (306) 787-0838