COMPANY PUSHING HEMP PLANT AS LAKE COWICHAN SOLUTION

Seeds of a fledgling hemp industry based in Lake Cowichan are being planted
with venture capital raised by TransGlobal Hemp Products Corporation.

President Brian Johnson says his Island company plans to build a $2-million
hempseed pressing and de-hulling mill near the former Teleglobe site off
Highway 18.

"We hope to turn soil in the next few months," he said.

TransGlobal's hempseed press mill can be used to process products such as
food, clothing, building materials and more.

The solar-shingled mill would be built from hemp wallboard, structural
beams and even hemp concrete.

The plant - complete with movie theatre, snack bar and gift shop - would
also educate locals and tourists about the hemp industry. Hemp would be
grown locally, imported from the Prairies or from countries such as China.
Johnson's trying to close a site deal with Lake Cowichan's Johel Brothers
Contracting that would give his firm a 99-year lease on 10 acres.

"That's Brian's request to us," said Dave Johel. "The ink's not in the
drying mode yet."

His lawyers are working on the deal that could be reached in a month or two.

"I think TransGlobal can make a go of it if they do things properly," he
said, noting forest-dependent communities like Lake Cowichan should have
branched into clean, alternative industries long ago.

Johnson had earlier pitched his hemp operation to Lake Cowichan council,
requesting land for his site in return for company shares, Mayor Jack Peake
said.

"We don't have any land," he said, adding Johnson also requested council
help TransGlobal apply for government grants.

"These commitments were too risky for our town. If there's such a good
risk, go to the private sector."

The lake project is the first of nine hemp mills TransGlobal plans to build
on the Island. Hemp crops would use the west coast's mild growing climate
and products could easily reach U.S. markets, he said.

Other operations would include a $15-million fibre-separation and textile
mill in North Cowichan, and a $5-million aquaculture fish feed/bait mill in
Cowichan Bay.

Johnson hopes to fund his project by attracting interested investors.

His third-party venture capital corporation has gained about $400,000 so
far toward the project.

"We hope to get the rest by Dec. 31," he said.

Duncan chartered accountant Dan Little confirmed Johnson's pitch that VCCs
have federal and provincial tax advantages.

"There are limited tax credits on contributions to a VCC," Little said.

"VCCs can also be eligible RRSP investments to provide a further deduction."