MR3 Systems, Inc. And MRD Holdings, Inc. Announce First Joint Project And Define Terms Of Their Royalty And Profit Sharing Arrangements

SAN FRANCISCO – JULY 6, 2005 / BUSINESS WIRE

MR3 Systems, Inc. (“MR3" or the "Company”) (OTCBB:MRMR), is pleased to announce it has commenced its first metals recovery project with its new lead investor, MRD Holdings, Inc. (“MRD”), a Delaware corporation. In connection with the commencement of this first joint project, MR3 and MRD have also further defined the terms of their global Strategic Partnership.

The first MR3/MRD project involves the extraction and purification of Cobalt (Co), Nickel (Ni), Tungsten (W) and Tantalum (Ta) from a large industrial slag pile located in Austria, and the construction of a central Research & Development Processing Center (the “Center”) in Europe, which will process this first slag pile. Charles K. C. Chan, Director of MRD, commented, “Our goal is to develop and construct the first metals processing center, outside the United States, using MR3 Technology to evaluate various precious and base metals extraction opportunities. The Center will include a five (5) tons per day pilot plant and a fifty (50) tons per day toll processing facility, which will work in conjunction with the MR3 R&D Facility located in Denver, Colorado. We plan to implement a similar Center with larger capacity in Asia to process mineral assets from that region in early 2006.”

William C. Tao, Ph.D., CEO of MR3, stated, “The metals recovery market in Europe is primed for application and implementation of MR3 Technology. With MRD and Swift Capital as our financial and global strategic partners, MR3 will be able to accelerate the execution of its domestic and global business strategy. We intend to complete our Phase 1 - evaluation of the Ta/Ni/Co/W extraction project by the end of August, 2005, and move to Phase 2 - pilot scale-up, shortly thereafter.”

Since the execution of the Stock Purchase and Loan Option Agreement (“Agreement”) announced last month, MR3 and MRD have defined the mechanics for their joint operations, as follows:

1. MRD has been granted exclusive right of first refusal to finance, and jointly develop and implement, MR3 projects in all territories outside of North America. If MRD elects to finance a project, it will exclusively engage MR3 to build and operate the project, with a to-be-agreed-upon MR3 profit, plus a 5% net profit royalty to MR3. Should MRD decline to finance any project, MR3 will be free to pursue the project on its own terms as long as it does not conflict with other MRD activities.

2. MR3 and MRD agreed to amend the territorial designations to expand MR3’s to all of North America and MRD’s to all of Europe.

Randall S. Reis, Chairman of MR3, stated, “It became apparent as we began to execute our joint business plan with MRD, under this first project, that the terms of our original Agreement needed further clarification. This joint partnership with MRD offers MR3 the unique opportunity to join with a very strong financial partner for the projects they elect to finance, or to seek independent financing for opportunities MRD elects not to fund. All early indications are that this will be a highly successful partnership.”

Corporate Profile:

MR3 Systems, Inc. provides custom technology solutions for metals-related problem applications and precious metal opportunities in the mining industry and environmental remediation markets. For more information, visit the Company’s website www.mr3systems.com.

Certain statements contained in this press release are forward-looking statements within the meaning of federal securities laws. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties, some of which are beyond the Company's control. These include changes in the prevailing prices of the metals that we produce in addition to the unforeseen difficulties and uncertainties in the businesses in which we operate.

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