Nevada Chemicals, Inc. Announces 2nd Quarter 2008 Earnings

SALT LAKE CITY--(Business Wire)--
John T. Day, President and Chief Executive Officer of Nevada
Chemicals, Inc. (NASDAQ:NCEM), today announced earnings for the second
quarter ended June 30, 2008. The Company had net income of $1,377,000
or $0.20 per share compared to $976,000 or $0.14 per share in the
second quarter of 2007. For the six months ended June 30, 2008, the
Company had net income of $2,326,000 or $0.33 per share, compared to
net income of $1,753,000, or $0.25 per share, for the six months ended
June 30, 2007.

The Company's net income for the three months ended June 30, 2008
increased $401,000 or 41% to $1,377,000 as compared to $976,000 during
the same period in 2007. The increase in income is due primarily to
the reduction of the Canadian and U.S. tax accrual reserves and, to a
lesser extent, the increased net income of our joint venture, Cyanco.

"We are encouraged by our results and accomplishments this
quarter," said Day. "During this past quarter we announced the major
expansion of our joint venture Cyanco, as a result of additional
secured business. We increased our dividend to the shareholders 11% to
$0.10, and we received positive notification on our U.S. and Canadian
tax appeals which allowed us to reduce the liability we had accrued."

The Company continues its research and development on engineered
solutions that can enhance the production process at its joint
venture. These engineered solutions are being incorporated into the
new expansion facility which will reduce the consumption of our raw
materials and increase the overall throughput of the facility. The
Company anticipates continued volatility in the cost of raw materials
as the price of energy continues to vary. Cyanco continues to see
increases in its spot or short-term contract sales, which seem to be a
result of the strong gold prices.

Cyanco is a 50/50 joint venture company of Nevada Chemicals, Inc.
and CyPlus Corporation. Cyanco has produced and marketed liquid sodium
cyanide to the western United States gold mining region for the past
18 years.

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NEVADA CHEMICALS, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
AND BALANCE SHEET DATA (UNAUDITED)

Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
------------------------------------------------

Revenues and Equity
in Earnings of
Joint Venture $ 1,913,000 $ 1,643,000 $ 3,517,000 $ 2,739,000

Income before
provision for
income taxes $ 2,111,000 $ 1,472,000 $ 3,560,000 $ 2,434,000

Net income $ 1,377,000 $ 976,000 $ 2,326,000 $ 1,753,000

Earnings per Common
Share Assuming
Dilution $ 0.20 $ 0.14 $ 0.33 $ 0.25

Stockholders' Equity $26,808,000 $23,676,000 $26,808,000 $ 23,676,000

Total Assets $28,858,000 $26,339,000 $28,858,000 $ 26,339,000

Weighted Average
Common Shares
Outstanding - Fully
Diluted 6,998,000 7,004,000 6,994,000 7,002,000
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Note: The foregoing contains "forward-looking" statements that are
pursuant to the safe harbor provisions of the Private Securities
Reform Act of 1995. Editors and investors are cautioned that
forward-looking statements involve risks and uncertainties that may
affect the Company's business prospects and performance. These
include, but are not limited to, economic, competitive, governmental,
technological and other factors discussed in the Company's reports to
shareholders and periodic filings with the Securities and Exchange
Commission.

Nevada Chemicals, Inc., Salt Lake City
John T. Day, President/CEO
Kevin Davis, CFO
801-984-0228

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