Hedman Resources Limited

Hedman Resources Limited

September 21, 2005 09:58 ET

Hedman Uncovers Significant Added Insurance Coverage

TORONTO, ONTARIO--(CCNMatthews - Sept. 21, 2005) - HEDMAN RESOURCES LIMITED (TSX VENTURE:HDM) announced today that up to $35.9 million USD in additional excess liability coverage has been identified to be applied, if and when necessary, in the continuing defence of asbestos litigation lawsuits.

As reflected in its financial disclosures, Hedman is a defendant in numerous legal actions in the United States. It is alleged that in the 1970s, Hedman sold a mineral filler known as hedmanite and that this posed health hazards similar to asbestos. Hedman disputes these allegations, aggressively defends such lawsuits and has been resolving them at an average of under $2,000 per claim.

Stephen A. Edell, Hedman's President and CEO, recently completed an archival search and forensic analysis of historical company records to determine the extent of potentially available, and previously unknown, insurance. Based on Mr. Edell's findings, Hedman retained Proskauer Rose, a prominent New York law firm, to pursue newly discovered leads into additional insurance coverage. It has been determined that up to $35.9 million USD in excess liability coverage is available for these purposes. The respective carriers were put on written notice by its solicitors of Hedman's right to coverage in July of 2005, as to $35 million USD of this total. To date, no carrier has objected to these notices.

"This is a significant development for the Company," commented David Berman, Hedman's Chief Financial Officer. "Our 2004 audit disclosed that (then known) available insurance coverage amounted to approximately $9.7 million. That sum equated to, subject to represented auditing adjustment factors, the total of all current claims if resolved based on historical settlement averages. That placed us in a precarious position going forward. This added layer of substantial coverage is significant and ought to provide greater comfort to our shareholders and increase our attractiveness to potential financiers, investors and prospective industry joint venture partners."

Historical information on the company, including earlier news releases and financial disclosure, may be viewed at www.sedar.com and at www.hedmanresources.com.

This news release may contain forward-looking statements, which are not historical facts, but are based on certain assumptions and reflect the company's current information and expectations. The forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. The company disclaims any intention or obligation to update or revise forward-looking statements. Investors should not place undue reliance on forward-looking statements as a prediction of actual events.

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