5N Plus Converts Debenture to Sylarus Technologes on Majority Interest

5N Plus Inc. announced that it has agreed to convert the $3 million debenture provided to Sylarus Technologies, LLC of Saint George, UT on June 21, 2010 into a 66.67% majority interest. 5N Plus has also agreed to provide additional funding of $766,000 in the form of secured debt to enable the repayment of short term debt contracted by Sylarus. In addition, 5N Plus intends to support Sylarus capital expenditures, working capital requirements and development expenses as needed.

Sylarus is a leading producer of germanium substrates for solar cells and an important customer of 5N Plus’ subsidiary Firebird Technologies. 5N Plus’ Jean Bernier will act as general manager of Sylarus until further notice.

“We are excited by the opportunities that Sylarus brings to the group through their unique product offeringJacques L’Écuyer, 5N Plus president and CEO, said.“They are one of the very few germanium substrate manufacturers qualified for space applications and are well positioned to take advantage of the anticipated growth in concentrator photovoltaics for terrestrial applications. 5N Plus is now one of the leading producers of germanium with a full range of related products for the infrared optics, LED and photovoltaic markets as a result of Firebird’s product portfolio and supply agreements with Teck Metals. Although the acquisition of Sylarus is not expected to be immediately accretive, as Sylarus gradually ramps up production and completes its development work, we expect that within a 24 month period it will have a positive impact on the earnings of the group. We welcome the Sylarus employees into the 5N Plus group and assure them of our support as they strive to bring Sylarus to the next level.”