Chap Mercantile Moves to Tier 1 From Tier 2

October 21, 2004

Chap Mercantile Inc (TSX-V:CPC)
Shares Issued 8,700,000
Last Close 10/20/2004 $0.69
Wednesday October 20 2004 - Miscellaneous

The TSX Venture Exchange has accepted for filing the company's reverse takeover (RTO) and related transactions, all as principally described in its filing statement dated Oct. 8, 2004. The RTO includes the following matter, which has been accepted by the exchange:

Tier reclassification

In accordance with Policy 2.5, upon completion of the reverse takeover (RTO) the company has met the requirements for a Tier 1 company. Therefore, effective at market open on Oct. 21, 2004, the company's tier classification will change from a Tier 2 mining issuer to Tier 1 mining issuer.

2004 Canjex Publishing Ltd.