Patch Tapped to Participate in Next Stage of Bidding in Algeria

Patch International Inc. has been selected by Sonatrach, Algeria's state- owned oil and gas company to participate in the next stage of bidding on a liquefied natural gas ("LNG") project in Algeria. PTII will provide a full capabilities commitment following PTII's previously submitted technical bid as announced in a news release on April 1, 2005.

The bid is in association with Gas Liquids Engineering Ltd. ("GLE") of Calgary, Alberta. GLE has agreed to provide the engineering services and qualified staff to PTII to meet the requirements for this Algerian project with Sonatrach.

Commenting on the bid, David Stadnyk, PTII President & CEO said, "Arun Dey, our professional engineer has extensive experience in this area and will head the project on behalf of PTII. GLE has been selected as our associate because in our opinion they are the best qualified, most experienced company for this project. We have put forward an outstanding bid and we look forward to Sonatrach's final selection. Winning this bid will provide a tremendous short-term and long-term positive impact for PTII. Also, we are being presented with a number of other opportunities from Sonatrach in Algeria."

The company had tendered a technical bid on a LNG project as announced on April 1, 2005 and from this bid PTII was one of three companies selected to provide a capabilities commitment to Sonatrach for them to make their final selection. The project is situated in Skikda, a town situated on the Mediterranean coast of Algeria close to terminals of transportation of the LNG by pipeline or by boat to the final destination countries. Specifically the project involves Units 5 and 6 at the Glick plant in Skikda

The aim of the project is to remove the carbonic gas from the LNG to the level of international acceptable standards. This is performed by extracting the carbonic gas with amine which gets attached or linked to it. The amine is subsequently recycled and reused while the carbonic gas is eliminated into the air by its volatility. After qualification of the technical bid the economic submission will be presented and after being granted the schedule of the project will follow.