Palcan Announces $780,000 Private Placement

Palcan Fuel Cells Ltd. (Burnaby, BC) announced the closing of its previously announced private placement, dated January 26, 2004, consisting originally of 2,220,000 units at a price of $0.30 per share, which is now amended to 2,600,000 units for a total proceeds of $780,000.00.

Palcan's unit offering will consist of a total of 2,600,000 common shares being issued at a price of $0.30 per share. The investors will also be granted non-transferable warrants (at the rate of one half warrant per share purchased in the private placement) to purchase up to an additional 1,300,000 common shares for a period of one year at a price of $0.385 per share, and at $0.77 in the second year.