Diversified Industries Ltd.

Diversified Industries Ltd.

December 13, 2007 08:30 ET

Diversified to Acquire Additional Ownership of CFR Chemicals Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 13, 2007) - Diversified Industries Ltd. ("Diversified") (TSX VENTURE:DVS) is pleased to announce the closing on the first of two option agreements between Diversified and No. 321 Cathedral Ventures Ltd. (Cathedral). Prior to this purchase, Diversified owned 40% and Cathedral owned 60% of CFR Chemicals Inc. ("CFR"). Diversified has exercised its right to purchase an additional 10% of CFR from Cathedral. This gives Diversified a 50% share in CFR. It's the Company's intention to exercise its second option to acquire the remaining 50% of CFR from Cathedral, which would result in Diversified holding 100% ownership of CFR (exercisable on or before February 28, 2010).

CFR Revenue Up 70%

Diversified President / CEO Darren Lamothe commented: "With our first quarter recently completed we are pleased to announce our revenues will be approximately $5 million, up 70% from the same period last year. A continuing strong second quarter is anticipated as many of our customers are optimistic of increased oil and gas activity in the New Year. We have implemented our long term growth strategy and are pleased to see our goals and objectives being met."

CFR Highlights

CFR is a supplier of specialty chemical products primarily to the oil and gas industry. Additional services provided by CFR include custom blending, storage of chemical products and third party logistics. CFR's growth is generated from management's ability to capitalize on opportunities in the chemical market and to provide competitive advantages to its clients. An integral part of this strategy is an ongoing program in R & D of new and unique chemical products.

- CFR is solidly financed and with substantial financial reserves to allow it to grow its revenues over the foreseeable future.

- CFR owns 22 acres in central Alberta on which its main bulk storage and manufacturing facility is located.

- CFR owns in excess of 6.5 million liters of bulk chemical storage at its various locations within Alberta.

- CFR owns approximately 3,000 feet of rail siding on a CN track which is capable of handling up to 35 tank cars. The siding is serviced by CN Rail three times per week.

- CFR has a custom blending facility used to manufacture its own specialty chemicals as well as contract blending for customers.

- CFR generates revenue from custom blending, bulk chemical storage and rail transloading to third party clients and chemical distribution to the oil and gas industries as well as to other industrial markets.

- CFR has over 30 different chemical products that are currently sold in Canada, the United States and abroad.

- CFR has a very experienced core management team operating from Head Office located in Central Alberta.

Diversified currently owns 50% with the option to own 100% of CFR Chemicals Inc. For more information visit www.cfrchemicals.com.

On behalf of the Board of Directors:

Darren J. Lamothe, President/CEO

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 has in no way passed upon the merits of the proposed acquisition and has neither approved nor disapproved the content of this press release.

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