Simon Fraser University President Emeritus Dr. William Saywell to Join Palcan Board of Directors

VANCOUVER, British Columbia--July 26, 2004--The Board of Directors of Palcan Fuel Cells Ltd. (TSX VENTURE:PC) is pleased to announce that Dr. William G. Saywell has agreed to join the Board of Directors of the Company. His formal appointment is expected to occur in August 2004. Dr. Saywell's appointment will expand the Board of Directors to seven members.

Dr. Saywell is President Emeritus of Simon Fraser University and Vice-Chairman of Intercedent Ltd., a business development and management consulting firm with offices in Beijing and Singapore. He is currently a Director of the Tokyo Mitsubishi Bank of Canada, of vLinx. Inc and of Seashore Mineral Resources Ltd.

Dr. Saywell completed his Ph.D. in East Asian Studies at the University of Toronto. He served on the faculty of the University of Toronto including being seconded to the Canadian Embassy in Beijing to serve as its first Sinologist and cultural attache. From 1983 to 1993 he served as President and Vice-Chancellor of Simon Fraser University and from 1993 to 1999 he was President and CEO of the Asia Pacific Foundation of Canada. In the past he has served on the boards of directors of a number of companies including Westar Group, Westcoast Energy and Spar Aerospace.

Dr. Saywell brings to Palcan, extensive experience in managing complex relationships throughout Asia and in building successful multi-disciplinary teams.

"William Saywell will add increased depth to Palcan's Board of Directors in managing the interface between our North American business activities and the enormous opportunities that are available to us throughout Asia," said John Shen, Palcan's Chairman and Chief Executive Officer. "His skills in running and growing large, complex organizations will be highly beneficial to Palcan and its growth and development," he added.

"I am intensely interested in seeing our environment not deteriorate because of economic development. Asia, with its pressing need for development will require new technologies to support the advancement of over half of the world's population to western standards," said Dr. Saywell. "Palcan has a piece of the solution to this issue and I am pleased to be able to contribute both my knowledge of Asia and my experience in leading growing enterprises to the Company to help make it succeed both in Asia and here in Canada," he added.

About Palcan

The Company is a leading developer and manufacturer of metal hydride hydrogen storage products and proton exchange membrane (PEM) fuel cell systems under 5 kilowatts. The Company's proprietary and patent pending technologies form the core of the PalPacTM Power Products. A unique and integrated fuel cell power system aimed directly at low output applications where batteries and smaller internal combustion engines (ICE) are the power source. These include stationary, marine, military and portable power applications. The Company's manufacturing, research and development facilities are located in Burnaby, British Columbia and Jiaxing, China. The Company trades on the TSX Venture Exchange under the symbol "PC".

Certain matters discussed in this press release may contain forward-looking statements that may involve risk and uncertainties. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including but not limited to; product development delays, the ability to attract and retain business partners, competition from other fuel cell manufacturers, competition from existing power technologies, and the ability to provide the capital required for product development, operations and marketing. Investors are encouraged to review the Company's filings on SEDAR at www.sedar.com including Corporate Financials and Annual Information Form (AIF).

The TSX Venture Exchange has neither reviewed nor approved of the contents of this news release.