Poly-Pacific International Inc. is a junior industrial company that was first listed in Canada on September 25, 1995 and trades as a Tier 1 company on the TSX Canadian Venture Exchange (TSX-V:PMB). Poly-Pacific was also listed on the USA on December 30, 2005, on the NASDAQ Over The Counter Bulletin Board (OTCBB: PLYPF), on the German Stock Exchange in January 2007 (POZ), and the Berlin Stock Exchange (AOLGDN) also in January 2007.

Since its inception, the Company has worked to refine its MultiCut ™ plastic blasting media by developing the technology to provide consistent, high quality products for military, commercial and industrial customers.

During the previous four years, worldwide demand for plastic blast media has declined. This is due in large part to the high cost of plastics, which are largely petroleum based, combined with other less expensive competing products that have entered the market, such as starches, that are gaining in popularity. Starches are less abrasive than plastic blast media, allowing them to become a preferred method in the removal of paint on the aluminum fuselages in the airline and aerospace industries. Starches are also deemed to be more environmentally friendly than plastic. In addition to this, one of the largest consumer’s of blast media, the U.S. Military, has demanded ever increasing standards on the product.

Complying with these military specifications (“Mil-Spec”) is a very costly venture. Currently in North America, there are too many plastic blast media manufacturers competing in a shrinking market.

Management at Poly-Pacific has concluded that being a manufacturer of plastic blast media is no longer economically viable. Recognizing this, they have made the decision to redirect the company from being a buyer of plastics to being a provider of the commodity. Poly-Pacific has a long history in recycled plastics, purchasing the majority of its scrap plastic from China. As such, it has identified the worldwide shortage in certain types of plastics, specifically petroleum based polymers. As a result of this decision, the company is now focusing its efforts in the reclamation of polymers, specifically nylon, that have strategically been buried in landfill sites around the world.

Utilizing its expertise in the recycling of plastics, Poly-Pacific has sought out several landfill sites in North America that contain vast quantities commercial grade of nylon. These nylon deposits were as a result of over-production by the various manufactures during the 1950’s, 60’s and 70’s. Nylon, being a synthetic fibre, takes hundreds of years to decompose. Nylon which was deposited underground thirty to forty years ago will still retain most of its virgin commercial value. As a commodity, nylon is one of the most popular polymers in use today. When first invented in the 1940’s, nylon was mainly used for parachutes, toothbrushes and stockings. Nylon was also a principle component in the manufacturing of automotive tires up until the 1960’s. Today, nylons largest market, motor vehicles, accounted for 45% of total demand. Other major markets include electrical and electronics, consumer and institutional goods, packaging and industrial products. Advances in the motor vehicle market will fuel gains, as nylon will continue to penetrate new applications in engine and mechanical areas. Electrical and electronic markets will be bolstered by gains in wire, cable and electronic component uses. Worldwide nylon demand is estimated to increase by 40% by 2015.

We have long standing experience in the recycling industry and have built a reputation on manufacturing and distributing environmentally safe and technologically advanced alternatives used in the paint stripping industry. With growing landfill sites becoming a worldwide problem, landfill reclamation projects provide Poly-Pacific with a unique opportunity to assist in cleaning our environment, while earning revenue for the Company and enhancing shareholder value. The Company will continue to pursue its business model to include the reclamation of landfill sites and industrial polymer fibre throughout North America.

We were introduced to the opportunity to bid on a Request for Proposal by the City of Kingston, Ontario in the spring of 2006 for a landfill site (McAdoo), which is purported to contain up to 350 million pounds of Nylon Type 6/6. In February 2007, the City of Kingston awarded Poly-Pacific the right to conduct an assessment of this property to determine the viability of this operation.

To capitalize on this opportunity, Poly-Pacific plans to utilize its expertise as a recycler to reclaim the McAdoo Site, along with other landfill sites containing nylon throughout North America. The company has well established connections into the Chinese market for which the nylon will be sold into.