March 18, 2004

News Release: Palcan Fuel Cells Signs Letter of Intent with Singapore's CET Technologies Pte. Ltd.

Palcan Fuel Cells Ltd. (TSX VENTURE:PC) today announced that it has signed a Letter of Intent (LOI) with CET Technologies Pte. Ltd. ('CET') of Singapore, a division of Singapore Technologies. The LOI confirms that CET will test and evaluate Palcan's Palpac(TM) fuel cell system and backup power generator for use by the Singapore Armed Forces.

CET is a division Singapore Technologies Engineering who are an integrated engineering group specializing in aerospace, electronics, land weapon systems and marine industries whose parent Singapore Technologies has 2002 sales of $9 Billion U.S. The Singapore Armed Forces are seeking a replacement energy source for its current petrol fuelled power supply system with an additional goal to reduce environmental harm involved with existing dry cell batteries.

CET Technologies will provide test results to Palcan and anticipates that, subject to agreement on pricing, specifications and delivery schedules, it will purchase Palpac(TM) fuel cell systems and back up power generators from Palcan for resale to its customers including the Singapore Armed Forces.

The testing and evaluation will take place over a period of three to six months starting early in the second quarter of 2004.

This testing and evaluation of Palcan's technology reaffirms the worldwide interest in fuel cell technology of the caliber produced by companies like Palcan. Palcan's President &CEO was singled out by Fuel Cell Management magazine as one of the 'Fuel Cell 30', leading figures in fuel cell technology recognized as one of 30 persons having significant impact on the budding industry.

The list acknowledges the contributions made by these individuals toward the establishment of fuel cell technology as a reliable, clean alternative energy source. It also serves as the industry's 'Who's Who,'including representatives from private enterprise, government and academia.

Shen joins other Canadian Executives including the leadership of such prestigious fuel cell companies as Ballard Power Systems, Inc., Chrysalix Energy Management, Hydrogenics Corp., Fueling Technologies, Inc. and Fuel Cells Canada.

'This LOI is the beginning of what we believe will be a long term relationship between Palcan Fuel Cells and CET Technologies. CET Technologies provides Palcan with a firmly entrenched conduit to open up new markets for its products through its established distribution infrastructure given the strong connections that CET has with the Singapore Armed Forces, other government divisions and private companies. We firmly believe that Palcan's technology will perform and we will be successful in demonstrating the quality and capability of our products to this important technology partner.'

John Shen, Ph.D. President &CEO

Certain matters discussed in this press release may contain forward-looking statements that may involve risk and uncertainties. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including but not limited to; product development delays, the ability to attract and retain business partners, competition from other fuel cell manufacturers, competition from existing power technologies, and the ability to provide the capital required for product development, operations and marketing. Investors are encouraged to review the Company's filings on SEDAR at www.sedar.com

The TSX Venture Exchange has neither reviewed nor approved of the contents of this news release.

SOURCE: Palcan Fuel Cells Ltd.

Palcan Fuel Cells Ltd. Daniel Gallagher, 866-548-8868 or 604-422-8868 This email address is being protected from spambots. You need JavaScript enabled to view it. www.palcan.com

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