John S. and Christobel D. Rendall - Page 34

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               Although Solv-Ex was required to sell all of its Canadian              
          operating assets and leases in order to raise cash, it still                
          retained ownership of its hydrocarbon, mineral, and metal                   
          extraction technologies, numerous patents in the United States,             
          Canada, and elsewhere covering those technologies, both for oil             
          sands and oil shale (the retained technology), and land in                  
          Albuquerque, New Mexico containing a research facility, office              
          space, a pilot plant, an acid plant, and machinery and equipment.           
          It also continued to employ research engineers.  The existence of           
          those retained assets and personnel suggests that, as of the end            
          of 1997, Solv-Ex was in a position to continue its attempts to              
          become a successful operating company after it emerged from                 
          bankruptcy.                                                                 
               At trial, Mr. Rendall testified that the retained technology           
          was not marketable as of December 31, 1997, because of his loss             
          of credibility attributable to the SEC investigation.  Mr.                  
          Rendall also testified, however, that the retained technology               
          still had substantial intrinsic value which would become apparent           
          to the marketplace once his credibility was restored through                
          proven usefulness of the technology in extracting minerals.  We             
          interpret that testimony to be an acknowledgment by Mr. Rendall             
          that the retained technology had potential value to Solv-Ex                 
          sufficient to enable it to emerge from bankruptcy as a viable               
          company.                                                                    






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