MISSISSAUGA AND SUDBURY, ON--Hy-Drive Technologies Ltd. (TSX-V: HGS; "Hy-Drive") today announced that it entered into a definitive marketing, distribution and manufacturing agreement with Canadian-based Mining Technologies International Inc. (MTI). Under the terms of the agreement MTI will adopt the HGS(TM) technology for use on selected underground and above ground mining equipment. The work will include sales, marketing and manufacturing by MTI as well as ongoing research and development to enhance HGS features and make them more suitable for the mining market. With hundreds of years of mining history and one of Canada's most significant mining communities MTI has chosen Sudbury, Ontario for the manufacturing and research facility.

The significance of this agreement and the benefits that it could bring to the mining community was further underscored by the presence of the Honorable Rick Bartolucci, Ontario's Minister of Northern Development and Mines at the singing of the agreement. Mr. Bartolucci stated that "I believe this partnership that was struck here today sets such a high standard for the industry to follow, and not only the mining industry but others as well."

Based in Sudbury, Ontario, MTI is a leading manufacturer of mining equipment including trucks, loaders, underground utility vehicles as well as drilling equipment. Hy-Drive will provide MTI with core component parts of the HGS technology and MTI will then manufacture a finished commercial product to specifically suit the vast array of sizes and number of fuel burning equipment and vehicles that operate throughout the mining industry. Ongoing research and value added enhancement work will also take place at MTI's Sudbury facility.

"We are very excited about the opportunity to market Hy-Drive's HGS technology to the mining industry," stated Robert Lipic, President and CEO of MTI. "We found tremendous improvements in emissions and specifically, particulate matter when we measured it and compared it to the original tests, it was almost eliminated down to 0.02% and the NOx and CO gases were reduced substantially. We believe this technology will substantially change the way we think about the air quality and the conditions of the air and health and safety for people underground as well as on the surface. Today, the mining industry is facing significant pressure from regulators and mining employees to reduce harmful emissions. Products that can help improve the quality of air for miners working below the surface are in very high demand. With mines in danger of being shut down because of emission concerns, losses to mine owners and shareholders could number in the hundreds of millions. The industry is looking at all options to help reduce harmful emissions and Hy-Drive's HGS represents to us and to our customers a viable solution to help address this growing problem", continued Mr. Lipic.

"Having purchased and tested 20 HGS units earlier this year, we saw very quickly the enormous benefit that can be achieved from the installation of the technology on diesel burning mining equipment. While the fuel-saving levels of approximately 27% were very impressive and surpassed our expectation, we were much more focused on the emission reduction possibilities that the HGS presented. Having already worked with Hy-Drive for some time we have already begun discussions with some of our customers to quickly adopt the technology for their respective operations including a very well known large Iron Ore producer. Some of these discussions have already presented immediate results as we are presently finalizing agreements to deploy the HGS at four (4) different mine locations. As we move forward, we are confident this technology will be readily accepted by the mining community with its remarkable ability to create a healthier work environment while at the same time save our customers money from greater fuel efficiency," concluded Mr. Lipic.

"Our agreement with MTI will greatly enhance our immediate addressable market for our HGS technology," stated Tom Brown, Hy-Drive's President and Chief Executive Officer. "While always looking for ways to reduce fuel costs, the mining industry's chief concern is air quality. Our HGS technology is ideally suited to address this concern as it dramatically reduces exhaust emissions while enhancing fuel efficiency."

"We have already started to scale our business in the trucking market following the commercialization of our G2 truck unit and the Conditional Purchase program launched earlier this year," Mr. Brown continued. "Now in partnership with MTI, we will be able to make a substantial contribution for greater fuel efficiency and reduced emissions in the mining sector, one of the world's fastest growing and one of its most dependent industries. MTI's market leading position as an equipment supplier to this industry group adds instant credibility for our HGS technology. The MTI/Hy-Drive collaboration holds great promise, for the two companies, the region, and the Province. We should also recognize the achievement to date has largely been a product of the efforts of the young people in both of our companies. We are championing a technology that is both economically valuable and environmentally useful, which under the stewardship of people who represent the future of our country. They deserve to be recognized for their outstanding contributions," concluded Mr. Brown.

The Hy-Drive system works by injecting small amounts of hydrogen gas into the combustion chamber of a regular internal combustion engine. This creates an enriched air mixture and a more complete and faster burn which results in reduced emissions, improved fuel efficiency and more engine torque. The product is simple to install and can be readily adapted to a variety of internal combustion engines and fuel-air mixtures.

About Mining Technologies International (MTI)

Canadian owned Mining Technologies International Inc. (MTI) is a major manufacturer and supplier of quality mining systems. MTI services underground and surface operations around the globe from a network of state of the art manufacturing facilities on three continents plus sales and service centers worldwide. MTI operates four manufacturing facilities producing a wide range of advanced mining equipment including: hydraulic drill jumbos, LHD loaders, dump trucks, shaft drilling jumbos, long hole jumbos, in-the-hole (ITH) drilling rigs, computerized drill rigs, automated ITH drills with rod handlers, rail haulage systems (chutes, rail cars and dump stations), mine locomotives, buckets, bucket lip assemblies, bucket wear parts and low profile crushing plants as well as custom designed equipment for specific underground requirements. MTI's head office is located in Sudbury, Ontario and for further information can be viewed on their web site http://www.mti.ca

About Hy-Drive

Hy-Drive is an energy technology firm that has developed a proprietary, patented hydrogen generating system. The Hy-Drive system generates and injects hydrogen gas into a regular internal combustion engine, enhancing the combustion process by allowing fuel to burn more efficiently and completely. In previous extensive customer trials and tests, the Hy-Drive system has demonstrated significant performance enhancements, including reduced emissions, increased torque/horsepower, fuel savings and extended engine life. These benefits, specifically fuel economy and reduced emissions, provide customers with greater productivity overall, as their engines operate more efficiently, with improved cycle times and less carbon build-up. For further information, visit http://www.hy-drive.com.