Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

September 23, 2009 09:11 ET

ArcelorMittal Agrees to Fund Trials of Amazon Mining's ThermoPotash Fertilizer

TORONTO, ONTARIO--(Marketwire - Sept. 23, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Amazon Mining Holding Plc (TSX VENTURE:AMZ)
("Amazon" or the "Company"), is pleased to announce that the Company has entered into an agreement with ArcelorMittal Bioenergia Ltda. (An ArcelorMittal Group company)(NYSE:MT) ("ArcelorMittal") to fund agronomic tests using Amazon Mining's proposed ThermoPotash product, derived from the Cerrado Verde project.

Cerrado Verde is a source of potash rich rock from which Amazon plans to produce a slow-release, non- chloride, multi-nutrient, fertilizer product.

ArcelorMittal Bioenergia produces charcoal for steel production from renewable eucalyptus forests, a substitute for mined metallurgical coal. Their plantations cover 170,000 hectares (656 square miles) in the Minas Gerais and Bahia states of Brazil. Eucalyptus was introduced to Brazil in 1910, for timber substitution and the charcoal industry. It has thrived in the local environment, and today there are around 5 million hectares planted (19,000 square miles). The wood is highly valued by the pulp and paper, and the charcoal industries. Typically wood can be harvested every 5-7 years, helping to preserve the native forests from logging. The slow release and multinutrient characteristics of ThermoPotash could make it an ideal fertilizer for Eucalyptus.

The memorandum of understanding between Amazon Mining and ArcelorMittal governs testing of ThermoPotash product from a proposed pilot plant production. Under the terms of the agreement Amazon will provide ThermoPotash to ArcelorMittal for use in planting Eucalyptus forests. ArcelorMittal will designate a test plot and fund all costs associated with testing. ArcelorMittal's investments will include yield comparisons and chemical analysis,of nutrient behaviour in the soil and in the eucalyptus. The companies will jointly define the period in which the fertilizer is employed, and the stages of study. Data from the studies will be jointly owned by Amazon and ArcelorMittal to be used for development of the product, product marketing and project financing. ArcelorMittal will have pre-emptive right to the acquisition of 15% of potential ThermoPotash production at market price for a period of 24 months, in the event of successful commissioning of a ThermoPotash production facility by Amazon Mining.

Commenting, President & CEO Cristiano Veloso said, "This agreement represents a significant step in developing corporate demand for our proposed product. We are pleased to enlist the help of such an esteemed partner. Together we hope to develop a fertilizer alternative for Brazil's world leading biofuel and cultivated forests industries that will reduce dependence on imported potash salts."

About Amazon

Amazon Mining is a mineral exploration and development company founded by Brazilians in 2005. The company is focused on the development of Cerrado Verde project. Cerrado Verde is source of a potash rich rock from which Amazon plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product. Amazon Mining is a UK public company with shares listed on the TSX Venture Exchange since November 2007.

On behalf of the Board of Directors of Amazon Mining Holding Plc, Jed Richardson, Vice President of Corporate Development

Cautionary Language and Forward Looking Statements

THIS PRESS RELEASE CONTAINS CERTAIN "FORWARD LOOKING STATEMENTS", WHICH INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH RESPECT TO THE FUTURE FINANCIAL OR OPERATING PERFORMANCE OF THE COMPANY, ITS SUBSIDIARIES AND ITS PROJECTS, STATEMENTS REGARDING USE OF PROCEEDS, EXPLORATION PROSPECTS, IDENTIFICATION OF MINERAL RESERVES, COSTS OF AND CAPITAL FOR EXPLORATION PROJECTS, EXPLORATION EXPENDITURES, TIMING OF FUTURE EXPLORATION AND PERMITTING, REQUIREMENTS FOR ADDITIONAL CAPITAL, GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL RISKS, RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, AND LIMITATIONS OF INSURANCE COVERAGE. FORWARD LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED BY THE USE OF WORDS SUCH AS "PLANS", "EXPECTS", OR "DOES NOT EXPECT" OR "IS EXPECTED", "ANTICIPATES" OR "DOES NOT ANTICIPATE", OR "BELIEVES", "INTENDS", "FORECASTS", "BUDGET", "SCHEDULED", "ESTIMATES" OR VARIATIONS OF SUCH WORDS OR PHRASES OR STATE THAT CERTAIN ACTIONS, EVENT, OR RESULTS "MAY", "COULD", "WOULD", "MIGHT", OR "WILL BE TAKEN", "OCCUR" OR "BE ACHIEVED". FORWARD LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SAID STATEMENTS. THERE CAN BE NO ASSURANCES THAT FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SAID STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.

The potential grades detailed in this release are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the targets being delineated as a mineral resource.

Readers are cautioned not to rely solely on the summary of such information contained in this release and are directed to the complete set of drill results posted on Amazon's website (www.amazonplc.com) and filed on SEDAR (www.sedar.com) and any future amendments to such. Readers are also directed to the cautionary notices and disclaimers contained herein.

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.

Contact Information

  • Amazon Mining Holding Plc
    Cristiano Veloso
    President & Chief Executive Officer
    +44 (0) 20 8133 7607
    +44(0)20 7405 7773 (FAX)
    cv@amazonplc.com
    or
    Amazon Mining Holding Plc
    Jed Richardson
    VP Corporate Development
    +1 (416) 866-2966
    +1 (416) 866-8829 (FAX)
    jed@amazonplc.com
    www.amazonplc.com