Request for NASDAQ Listing Review

March 11, 1997
Perry Peregoy
Vice President
National Association of Securities Dealers
NASDAQ Issuer Services
1735 K Street N.W.
3rd Floor
Washington, D.C. 20006-1506

Dear Mr. Peregoy:

 We believe Solv-Ex Corporation ("Solv-Ex") has failed to meet its minimum stockholder’s equity requirement for listing on NASDAQ SmallCap Market.

Solv-Ex’s Unaudited Balance Sheet included in Form 10Q for its second quarter ended December 31, 1996 filed with the Securities and Exchange Commission on February 14, 1996 showed that Solv-Ex valued certain assets titled "Net property, plant and equipment" at $64,554,929 and other intangible assets at $4,514,985. Solv-Ex’s total stockholder equity was $37,054,293. The NASD’s NASDAQ SmallCap Market minimum maintenance listing requirement requires Solv-Ex to maintain at least $1 million in stockholders equity.

Solv-Ex and its chairman have been accused by the U.S. Securities and Exchange Commission and certain of its shareholders of numerous fraudulent activities. We have shown that Solv-Ex has issued completely false, totally untrue statements about its plant’s capacity and condition. Last year, Solv-Ex obtained approximately $70 million from a money manager who misappropriated the funds for personal gain. We do not believe that Solv-Ex has spent $67 million on its plant. We believe that Solv-Ex has grossly overstated the expenditures that qualify to be capitalized to create this asset. These expenditures have never been independently audited. The Solv-Ex plant can not be used to economically produce any marketable product. Therefore, it has no going concern value. The Solv-Ex plant’s market value can only be estimated by appraising the NASDAQ Issuer Services used market price of its individual components, less needed repairs, transaction cost and transportation expenses.


Manuel P. Asensio
Chairman, President and
Chief Executive Officer