NORAC SIGNS LETTER OF INTENT FOR AMALGAMATION WITH VIREXX.

Dr. Tyrrell, a virologist of international repute, is Dean of the Faculty of Medicine and Dentistry at the University of Alberta and the Director of the Glaxo Heritage Research Institute. His exceptional contributions to medical research have been recognized by his peers through awards such as the ASTech Award for Innovation and Science in Alberta, the Rutherford Award as "Outstanding Teacher for Undergraduate Students", the Kaplin Award for Excellence in Research, and the Prix Galien Canada Medal for Research for his groundbreaking work on antiviral drugs for Hepatitis B. In 2000, Dr. Tyrrell was awarded the gold medal by the Canadian Liver Foundation (CLF) and the Canadian Association for the Study of Liver (CASL), and the Alberta Order of Excellence from the Province of Alberta. In 2002, he was appointed an officer of the Order of Canada by the Government of Canada. In addition to authoring over 200 publications, he played a pivotal role in the development of the antiviral agent Lamivudine presently marketed by Glaxo as Epivir=AE for the treatment of HBV and HIV.

Rob Salmon, CA, Chief Financial Officer

Salmon was a partner with KPMG from 1981 until his retirement from the practice in 2000. At KPMG, his practice focused on taxation and corporate finance. Salmon was lead partner on a number of major engagements related to refinancings, "going public" transactions, acquisitions, mergers, structuring of international operations and technology transfers.

Reverse Takeover

The Proposed Amalgamation with ViRexx will constitute a reverse takeover and change of Business under the policies of the TSX Venture Exchange and as a result, is subject to both shareholder and regulatory approval. Upon completion of the Proposed Amalgamation, Amalco intends to continue business as a research and development company. As part of the regulatory approval process, Norac anticipates convening an annual and special meeting of shareholders as soon as practicable.

A general policy of the TSX Venture Exchange requires that a sponsor be retained to prepare a sponsor report in compliance with policy 2.2. Norac is of the view that based on the extent of experience of Amalco's directors and senior officers, a waiver of this policy will be requested by Norac from the TSX Venture Exchange.

Norac Industries Inc.

Over the past year Norac has not had any active operations. Its corporate strategy is to produce value for its shareholders through the acquisition of company that has substantial opportunity for growth. Norac is currently classified as an inactive company by the TSX Venture in accordance with Policy 2.6.

Completion of the above transaction is subject to a number of conditions, including but not limited to, acceptance of the TSX Venture Exchange and disinterested shareholder approval, as well as approval by the Board of Directors of Norac and ViRexx. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

For more information, call 780/989-6707