December 2, 2003

News Release: Canico Resource Corp.: Hatch to Prepare Onca-Puma Feasibility Study

Canico Resource Corp. has commissioned Hatch Ltd. of Mississauga, Ontario, Canada, to undertake a Feasibility Study (FS) of the development of the Onca-Puma Nickel Project in Para State, Brazil. The FS will advance the level of project assessment beyond the recently completed Onca-Puma Scoping Study, and will establish the economic and technical viability of the project.

The scope of the feasibility includes the deposit geology, resource estimation, reserves and mine production scheduling, process plant design, all infrastructure requirements and project economic analysis. The process plant will be a pyrometallurgical facility for the production of ferronickel, and will be based on the conventional rotary kiln-electric furnace (RKEF) technology as employed by other operating smelters such as Cerro Matoso, Loma de Niquel, SLN and Pamco. The feasibility study will be based on the initial construction of a single RKEF line, with the addition of a second line once the first is fully commissioned.

The infrastructure component of the feasibility study will include configuration and routing of a power transmission line, the upgrading of public roads and the utilization and modification of existing rail and port facilities (if required) for the transportation of consumables supplies and ferronickel product.

The FS will be carried out by a team comprising Hatch in association with Minerconsult Engenharia Ltda., a Brazilian engineering firm and Construtora Norberto Odebrecht S.A., a major Brazilian construction company. Each company will bring unique experience to the team that will be instrumental in successful execution of the feasibility study:

- Hatch, which has over 40 years of experience with nickel process technology and has completed several major nickel laterite smelter projects, including the Cerro Matoso Expansion Project in Colombia, the Falcondo Project in the Dominican Republic as well as several furnace assignments at PT Inco in Indonesia, will provide the mining and process plant design along with overall project management.

- Minerconsult, which has extensive project experience in Northern Brazil and Para State in particular, including, nickel, copper and iron projects for CVRD and major kaolin and bauxite projects, will provide the necessary local input to the capital and operating cost estimates, as well as definition and design of the logistics, infrastructure and yard services requirements.

- Odebrecht, which has constructed numerous major transportation, infrastructure and metallurgical facilities in Brazil and other locations in South America, the United States and Africa, will contribute their direct construction experience in the region to ensure that the implementation and construction issues are properly reflected in the study.

The feasibility study is expected to be completed in the fourth quarter, 2004.

CANICO RESOURCE CORP.

J. Michael Kenyon, President &CEO

Cautionary Notices

This News Release includes certain 'forward-looking statements'within the meaning of the Private Securities Litigation Reform Act of 1995 of the United States. Other than statements of historical fact, all statements in this release, including, without limitation, statements regarding potential mineralization and resources, estimated or potential future production, potential ranking amongst nickel producers, and future plans and objectives of the Company, are forward-looking statements that involve various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this announcement. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the ongoing results of current exploration activities, conclusions of any other scoping studies, pre-feasibility or feasibility studies, changes in project parameters, and future metal prices, as well as those factors discussed under the heading 'Risk Factors'and elsewhere in the Company's documents filed from time to time with the Toronto Stock Exchange, the TSX Venture Exchange, Canadian securities regulators and other regulatory authorities. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.

Canico Resource Corp. J. Michael Kenyon President &CEO (604)669-9446 (604)669-9447 (FAX) Website: www.canico.com

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