John S. and Christobel D. Rendall - Page 35

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               Mr. Rendall further testified that the patents were                    
          worthless without his knowledge “of how to make * * * [them]                
          work.”  But, assuming arguendo that the patents were useless                
          without Mr. Rendall’s knowhow in exploiting them, it is                     
          undisputed that, as of December 31, 1997, Mr. Rendall was still             
          the CEO of Solv-Ex, and that, in Mr. Rendall’s own words, he and            
          the patents were “united for [the] future.”                                 
               Another reason for at least cautious optimism, as of                   
          December 31, 1997, regarding Solv-Ex’s prospects for financial              
          recovery was the potential commercialization of Solv-Ex’s Ti02S             
          technology (a titanium dioxide substitute for whitening paper and           
          other materials, hereinafter included in the term “retained                 
          technology”).  Mr. Rendall testified that they “had” the                    
          “product” in January 1998, that “it was an excellent product”,              
          and that, in February 1998, he went to Venezuela, where, the                
          following April and May, he was able to enter into two MOU’s with           
          Venezuelan companies for the production and marketing of pigment            
          using the Ti02S technology.15                                               



               15  We infer from Mr. Rendall’s testimony and from the                 
          representation in the amended disclosure statement filed in the             
          U.S. bankruptcy proceeding on June 23, 1998, that aspects of the            
          Ti02S technology had been “demonstrated previously in the Solv-Ex           
          Research and Pilot Plant facility in Albuquerque” that the                  
          technology was either developed or in the final stages of                   
          development as of Dec. 31, 1997.                                            






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