October 29, 2002

News Release: Participating in Integrated Fuel Cell & Solar Power Project

Palcan Fuel Cells (PC TSX-V) is pleased to announce it has been selected to supply the fuel cell power module and overall control system for a joint development project with Goodings Environmental Inc. to be funded by the federal Western Diversification Program through Fuel Cells Canada.
The purpose of this project is to design and demonstrate a grid independent regenerative power system, incorporating a photovoltaic ('PV') collection array, electrolyser, hydrogen storage, Palcan's PalPac( fuel cell power system and power and control electronics. The system will also be capable of operating with wind energy. A portion of the solar energy will be stored in the form of hydrogen to allow 24 hour operation by producing power with the fuel cell at night. In support of the current push towards global sustainable development, the integration of renewable energies such as photovoltaic, and wind power with a fuel cell based system form an independent, emission free power system for small homes or commercial applications.

Palcan's system will be based on its newest water cooled stack and standard 2 kW PalPac( Power Module. 'This is both an exciting application and a validation of Palcan's strategy of developing PalPac( Power Modules with applications in multiple markets. The PalPac( for this project is also being used for markets such as scooters and auxiliary power'stated Palcan CEO Jim McBeth.

Initial system demonstrations will occur at the National Research Council Innovation Centre in Vancouver.

About Palcan

Palcan is a leading developer and manufacturer of proton exchange membrane (PEM) fuel cells and systems in the power range 100W to 5 kW. Palcan's proprietary and patent pending technologies form the core of the PalPac( Power Products, a unique and integrated line of fuel cell power systems. Palcan's PalPac( fuel cell systems are a reliable and clean environmental alternative to replace batteries and small internal combustion engines in global consumer and commercial products such as

electric bikes, scooters, personal neighbourhood vehicles and many portable power products. The company's manufacturing and research and development facilities are located in Burnaby, British Columbia.

About Goodings Environmental

Goodings Environmental Inc. is a developer of fuel cell integration and hydrogen infrastructure technologies. Combining its proprietary components with related fuel cell systems, Goodings Environmental delivers complete hydrogen based power solutions for the off grid power market. Goodings Environmental is based in Vancouver, Canada, the world-renowned centre of excellence in fuel cell technologies

'Signed'

Jim McBeth

President and 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

CONTACT: TEL: 1-866-548-8868 Palcan Fuel Cells Ltd.

TEL: (604) 422-8868 Daniel Gallagher, Corporate Communications

FAX: (604) 422-8869

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Internet: http://www.palcan.com

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