Diversified Industries Ltd.

Diversified Industries Ltd.

November 08, 2007 13:06 ET

Diversified/CFR Chemicals Complete Second Phase of Expansion

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 8, 2007) - Diversified Industries Ltd. ("Diversified") (TSX VENTURE:DVS) is pleased to announce that CFR Chemicals Inc. ("CFR") has completed the second phase of its tank farm expansion. CFR's central tank farm is located west of Red Deer, Alberta on a 22-acre parcel of industrial-zoned land purchased in March 2007. CFR has a unique advantage as the property is serviced by 2,900 feet of single track CN railway siding, upgraded to handle dangerous goods. In addition, two of CFR's satellite locations within the province also offer the distinctive benefit of rail car service to its customers.

The initial tank farm was built in 2005 with a capacity of 11,000 bbls of bulk chemical storage. A significant portion of the revenue for the recently completed 2007 year end was generated from this initial capacity.

The recent completion of the Phase 2 expansion has added an additional 24,000 bbls of bulk chemical capacity which will have a significant impact on revenues for this coming year. In addition management is currently conducting a feasibility study for a third and further subsequent expansion of 24,000 bbls to meet ongoing customer demand.

CFR Chemicals leases additional lands on which it has built tank storage and distribution facilities in High Level, Alberta and Grand Prairie, Alberta. CFR has recently completed its expansion of its Grand Prairie distribution site / tank farm to allow for better tank storage and rail transloading capabilities providing a total of 42,000 bbls of chemical storage province wide.

CFR intends to continue expansion of its storage sites to provide even more efficient distribution to a variety of regions throughout Alberta and north-eastern British Columbia, building on its strategic advantages in the market place.

Diversified and CFR President / CEO Darren Lamothe commented: "The Company's vision is to create winning partnerships with our customers and we really take this seriously. This has been accomplished by listening to their needs and identifying innovative and creative ways to meet these needs. Our investments in better logistics and infrastructure at our Red Deer operations as well as Grande Prairie and High Level have been crucial for the past and future success of the company."

CFR is a supplier of both commodity and specialty chemical products primarily to the oil and gas industry. In addition, CFR's services include custom blending of various chemicals, storage of chemical products in its 42,000 bbls tank storage facilities, and a third party logistic customer management system. As part of CFR's growth strategy, management searches for and capitalizes on opportunities in the chemicals market that provide competitive advantages. An integral and necessary part of this strategy is an ongoing program in research and development of new and unique chemical products.



On behalf of the Board of Directors:

Stephen L. Davis, Director

Statements made in this news release that relate to future plans, expectations, events or performances are forward-looking statements. Such statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

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

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