Borealis Completes Chorus Motor Rights Deal

14 January 2000

Borealis Completes Chorus Motor Rights Deal

    GIBRALTAR--Jan. 14, 2000--Borealis Motor Manufacturing Limited has completed a transaction with Electro Windings Ltd., George and Karin Muhr of Sudbury Ontario concerning licensing rights in the Chorus Motor(TM) technology.
    Electro-Windings Ltd. has been a supporter of the Chorus Motor(TM), which uses new windings and controllers to greatly increase the efficiency of AC motors, since the early development phase. For more information about Chorus(TM) see the Borealis web site at www.chorusmotor.com. A recent feature on Chorus(TM) can be found at www.borealis.com/recent.htm
    Under the agreement, Electro-Windings Ltd., George and Karin Muhr, obtain licensing interests including the Canadian Chorus(TM) rewind market, the Canadian Chorus(TM) controller market for rewound motors, and the Canadian Chorus(TM) manufacturing rights for the Motors and Controllers of the Electric Haul Vehicle market including the underground locomotive market, subject to royalty payments to Borealis Motor Manufacturing Limited. A provision of the agreement allows Borealis Motor Manufacturing Limited to buy back these licensing interests before 2004.
    Borealis Motor Manufacturing Limited has been assigned all intellectual property rights in the Chorus Motor(TM) Technology previously owned by George Muhr.
    Isaiah W. Cox, President of Borealis Motor Manufacturing Limited, comments, "This agreement is a significant step forward in bringing the benefits of Chorus(TM) technology to the marketplace. Electro Windings has unrivalled expertise in motor rewind technology, and we are pleased that George can now share in the success of the motor he has helped to build."
    George Muhr says, "I have always had faith in the Chorus(TM) Technology and am delighted to see it brought to market."
    Borealis Motor Manufacturing Limited is a majority-owned subsidiary of Borealis Exploration Limited (NASD: BOREF, CDN: BSXC). Borealis Exploration Limited has 5,000,000 shares outstanding.

    Disclaimer: The disclaimer can be found at http://www.borealis.com/corporate/reports/1999/letter99.html