VIROTEC INTERNATIONAL LTD31 January 2006 UPDATE - I-99 Project,...

VIROTEC INTERNATIONAL LTD

31 January 2006


UPDATE - I-99 Project, Pennsylvania, USA

The Directors of Virotec International Ltd (Virotec) (AIM: VTI) provide the
following update to shareholders relating to the independent review of its Pilot
Test at the Interstate 99 project at Skytop Mountain, Pennsylvania ("I-99") by
MWH Americas, Inc. ("MWH").

The independent review by MWH details the background, conduct and results of the
pilot trial and concludes in its executive summary as follows:

"In summary and based on the data and observations, MWH concludes that the
pilot trial successfully treated approximately 50,000 cubic yards of acid-
producing rock raising the pH of surface-water runoff from acidic condition
(pH less than 3) to near-neutral conditions in contact springs and limestone
gallery discharge. There were also changes in the bedrock ground water. In
MWH's opinion the scale of the test was appropriate to the scale of the
problem to be addressed and yielded valid results.

In terms of the delivery system trialled:

1. The spray application of ViroMineTM to the high permeability fill
material in the upper portion of the Buttress was effective.

2. Surface application of the ViroMineTM slurry to the limestone
blanket via the drip system was effective

3. The pressure injection in the horizontal wells was effective at
adding ViroMineTM slurry to the fill materials under the highway and base
of the buttress fill."

The Company is satisfied that the independently verified results show, beyond
any doubt, that the BauxsolTM Technology can provide a high quality remediation
outcome for the Pennsylvanian Department of Transport ("PennDOT") at I-99.

Professor David McConchie, Virotec's Chief Scientific Officer, states that "the
I-99 site has many of the characteristics exhibited at the Gilt Edge mine site
in South Dakota (Superfund site) where BauxsolTM Technology was tested by USEPA
Region 8 and a single application of treatment reagents has continued to produce
outstanding water quality results over the five year period since the treatment
was carried out."

Virotec designed protocols and procedures for the application of its technology
at the Gilt Edge mine that were administered, applied and monitored by USEPA
contractors. This has not yet been the case at the I-99 site where it has become
apparent that there is not a complete understanding of the groundwater sources
or the geochemistry, permeability and homogeneity of the rock to be treated. To
steer the project to a successful outcome, a proper understanding of all aspects
of the I-99 site will need to be compiled and understood before any remediation
beyond the Virotec demonstration can be achieved.

The Executive Chairman, Brian Sheeran stated "The challenge for PennDOT is not
only a remediation outcome, it also has to satisfy the apparent political will
that exists to move part of the contaminated rock from the site. Notwithstanding
this we believe that Virotec can play a role in the cleanup of the site".

The earthmoving mentality and approach that caused the original problem cannot
solve it. Crushing contaminated rock and shifting it at enormous cost will
create a potentially similar problem at the dump site and both acid generation
and contaminated groundwater will still exist at the original site. Professor
McConchie explains "that the removal process will result in increased
fragmentation of the rock resulting in the exposure of more pyrite and
potentially more rapid oxidation and generation of acidic metal-contaminated
leachates. Removing the sulfidic waste rock will also expose bedrock, which
currently underlies the waste rock, to water and oxygen and potentially lead to
the continuing generation of acidic metal-contaminated water."

Mr Sheeran concludes "Virotec's technology has been successful at the Gilt Edge
Mine site over five years, and at more than twelve remediation sites in
Australia and Asia. This experience at site remediation supports our credentials
and we are now preparing a proposal to manage the whole remediation program at
I-99 to deliver a cost effective integrated program of predictable outcomes that
are achievable and sustainable".

The full report from MWH will be available on the Company's web site. If you
require further information please contact Virotec, on telephone +61755308014,
by email to [email protected] or visit our website at www.virotec.com. The report
was provided to the Pennsylvania Department of Transportation on 6 January 2006.




VIROTEC INTERNATIONAL LTD
ABN 81 004 801 398
PO Box 188
Sanctuary Cove QLD 4212
Australia
www.virotec.com