TORONTO, Nov. 9 /CNW/ - McVicar Resources Inc. ("McVicar") is pleased to announce that its Chinese subsidiary, Zhejiang Hongbo Chemical Co. Ltd. ("Hongbo") has reached a three year supply agreement with Tinci High-Tech. Materials Co. Ltd. ("Tinci") valued at RMB 200 million (~CDN $25 million). Under the terms of the agreement, Hongbo will supply Tinci with specialty chemicals used in personal care products and lithium batteries, beginning on January 1, 2008. Proportionately, the specialty chemicals used in personal care products represent approximately 80% of the order in terms of value, with
the remaining 20% being specialty chemicals used in lithium batteries. In addition, under the terms of the agreement, Hongbo agrees to sell and deliver, and Tinci agrees to purchase and accept a minimum of 90% of the annual orders.

    "I am extremely pleased with the signing of this major supply agreement by Hongbo, which follows a series of orders from major international companies in recent months. Hongbo's emphasis on innovation and product quality has helped to build the company's reputation, both domestically and internationally," commented Dr. Gang Chai, President & CEO of McVicar, "We are confident that our chemical business will continue to experience rapid growth."

    The Tinci Group is located in Guangzhou, Southern China, and has businesses involved in specialty chemistry, pharmaceutical and environmental engineering. Since 2003, Tinci has been marketing Hongbo's specialty chemicals, designed for application in personal care products, to the second largest shampoo manufacturer in China. Through Tinci's marketing efforts, Hongbo has previously sold between RMB 5 million to RMB 30 million to this shampoo manufacturer. Tinci was the largest customer to Hongbo before a DuPont order was recently received, valued at US $20 million. This new order represents the single largest order so far in the company's history.

    "We have been Hongbo's largest customer for the last four years," commented Mr. Jinfu Xu, Chairman of Tinci Group, "and we are very satisfied with the functionality and quality of the chemicals from Hongbo. The Tinci group understands the importance of securing a high quality and low cost supplier of specialty chemicals to partake in the rapid growth of China's shampoo market."

    Zhejiang Hongbo Chemical Co. Ltd. is the wholly owned Chinese subsidiary of McVicar (Hongkong) Advanced Material Co. Ltd., which is 51% owned by McVicar through an equity acquisition earlier this year. Hongbo actively engages in the research, production and marketing of specialty chemicals for the personal care, pharmaceutical and industrial markets.

    This press release contains forward-looking statements which reflect the Corporation's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize.

    The TSX Venture Exchange does not accept responsibility for the adequacy     or accuracy of this release.

     For further information: Dr. Gang Chai at: 55 University Avenue, Suite 605, Toronto, ON, M5J 2H7, Tel: (416) 366-7420, Fax (416) 366-7421, www.mcvicar.ca