Gemco’s subsidiary enters into Exclusive Supply Agreement

May 28, 2008

May 28 (PR Newswire) – Gemco Minerals Inc. is pleased to announce that through its wholly owned subsidiary company, Firstline Recovery Systems Inc. (Firstline), it has entered into an Exclusive Supply Agreement with A. Teichert and Son Inc., a California corporation doing business as Teichert Aggregates
(Teichert). This contract pertains to the exclusive distribution rights of the minerals known as Ilmenite and Magnetite. These rights allow Firstline to distribute and sell this product as a blast medium in the industrial
abrasive industry in both Western U.S. and Canada. Firstline has been working with Teichert for over a year to finalize this Agreement and is now satisfied with its terms.
Teichert produces Ilmenite and Magnetite as a by-product from its aggregate mining operations. Mr. Ron Stickel, Manager of Business Development and Geologic Services with Teichert, states there is currently
an estimated 25,000 tons of the minerals stored on-site at the plant in Sacramento, California.

The effective commencement date of production is dependent on Firstline first obtaining California Air Regulation Board (CARB) standard approval for the use of these products as a blast medium and then establishing a drying, screening and bagging plant at a nearby location. In conjunction with Teichert, Firstline has initiated the CARB test and Firstline management is negotiating with a U.S. company for a site on which to locate the screening, drying and bagging facility.

The Term of this Agreement is for a period of 5 years with an option for an additional 5 years, with mutual agreement of both parties. As part of the Agreement, Firstline has agreed to minimum tonnage conditions per contract year in order to maintain fixed pricing terms.


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