Advanced Primary Minerals Corporation
TSX VENTURE : APD

Advanced Primary Minerals Corporation

October 13, 2009 09:30 ET

APM Opens Processing Plant to Develop High Quality Primary Kaolin

New processing plant key to APM becoming North America's leading specialized kaolin producer

HALIFAX, NOVA SCOTIA--(Marketwire - Oct. 13, 2009) - Advanced Primary Minerals Corp. ("APM" or the "Company") (TSX VENTURE:APD) today announced the grand opening of its Dearing, Georgia primary kaolin processing plant, which will enable APM to develop its high quality primary kaolin and help the company become North America's leading specialized kaolin producer.

"The opening of our processing plant marks the culmination of over 10 years of detailed evaluation, product development and testing of our high quality primary kaolin resource," said Ken MacDonald, APM President and CEO. "We are excited about unlocking APM's potential as the first processor of high quality primary kaolins in North America, which will enable us to replace the primary clays currently being imported from Europe by U.S. manufacturers and serve as an alternative to domestic sedimentary clays in certain specialty applications."

The opening was attended by the City of Dearing Mayor, Sean Kelley and City of Thomson Mayor, Kenneth Usry and a number of other public officials who have been supporters of this new operation. The APM board of directors, the executive of APM's controlling shareholder, Erdene Resource Development Corp, and members from the McDuffie County Chamber of Commerce also participated in the event.

Resource

APM owns or controls a number of high-quality primary kaolin deposits in Georgia with a total resource of 25.5 million tons (Measured and Indicated). APM properties located in McDuffie County, Georgia will provide the crude kaolin to support the APM business plan. McDuffie County properties contain just under 10 million tons of APM's highest quality primary kaolin resource.

The APM primary kaolin is a very coarse clay that has unique attributes, including:

  • the ability to achieve exceptionally high brightness;
  • its high aspect ratio enabling superior optical and coverage qualities;
  • the ability to meet a wide range of chemical specifications; and
  • the ability to provide high casting rates in sanitary-ware ceramic applications.

During its Phase one program, a Phase two feasibility program will also be completed with further product development and trials for an expanded wet process calcine and hydrous product line targeting the paint and coatings and catalyst industries as well as other specialty industrial applications. Product trials have shown that APM's primary kaolin products meet or exceed the quality of comparable domestic supply and foreign imports. The APM inherent kaolin quality, proximity to the U.S. domestic market and elimination of foreign exchange risk add a strong competitive advantage over foreign primary clay suppliers for securing sales to U.S. manufacturers.

Update on Primary Kaolin Operation

APM's goal is to become North America's leading specialized kaolin producer. Its new Dearing plant is ideally located along the Augusta Highway, adjacent to rail, with all required utilities. Extensive product development and testing has been carried out over the past five years and APM has advanced commercial trials currently underway to complement production commitments already in place from leading global sanitary-ware and ceramic tile manufacturers.

APM is targeting value-added products that benefit from the unique attributes of the Company's high quality primary kaolin resource under a two phase development program. Target markets under the current Phase One program are focused primarily on primary kaolin products for the North American ceramics and whitewares industries as well as conducting contract toll processing with minimum monthly production commitments. Final modifications to the kaolin circuit have been completed with the installation of a continuous feed hopper conveyor system and the integration of a multi-silo bagging and bulk shipping process.

APM Background

APM has been active in Georgia and South Carolina for over ten years and has spent over US$15 million exploring, evaluating, extensively testing and securing, high-quality primary kaolin resources. APM has also operated an industrial minerals laboratory in Eatonton, Georgia since 1998.

KaMin LLC, formerly J.M. Huber Corp., has been mining primary kaolin clays from APM's Lucky Strike property since 2003 (under a limited tonnage lease from APM) to produce their HuberPrimeTM LWC paper product for a major global paper company.

About APM

APM, through its wholly owned subsidiary, Erdene Materials Corp., has been active in Georgia and South Carolina for over 10 years exploring for, evaluating, extensively testing and securing high quality primary kaolin resources. APM has also operated an industrial minerals laboratory in Eatonton, Georgia since 1998. The Company is targeting value added products that benefit from the unique attributes of its high quality, primary kaolin resource. Target markets include ceramics, paint and coatings, catalysts and other specialty industrial applications. APM has a consolidated cash position of approximately $650,000 US, 117,667,382 shares issued and outstanding and a fully diluted share position of 121,467,382.

Forward-Looking Statements

Certain information regarding APM contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although APM believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. APM cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what APM currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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