Asian Mineral Resources Limited
TSX VENTURE : ASN

Asian Mineral Resources Limited

December 21, 2007 14:32 ET

Asian Mineral Resources Limited and Malaysia Smelting Corporation Berhad Announce Closing of $20 Million Private Placement

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2007) - Asian Mineral Resources Limited ("AMR" or the "Company") (TSX VENTURE:ASN) and Malaysia Smelting Corporation Berhad ("MSC") announced today that they have closed the previously announced private placement (AMR news release dated December 17, 2007) by AMR of 11,428,571 units to MSC, a company incorporated in Malaysia and listed on the Main Board of Bursa Malaysia. Each unit consists of one common share of the Company and 0.595 of a warrant, with each whole warrant exercisable for one common share of the Company. The gross proceeds from the closing of the offering of units is $20 million. The securities issued under the offering are subject to a hold period expiring on April 22, 2008.

The 6,799,999 warrants are exercisable until April 30, 2008 at an exercise price of Cdn $2.10 per share. MSC needs to obtain shareholders' approval in order to exercise the warrants in full. In the event MSC exercises the warrants in full, it will be entitled to nominate one member to AMR's Board of Directors. MSC also has the right for a period of up to 2 years to increase its ownership level to not more than 19.9% and to participate in future equity offerings in order to maintain such ownership position. Assuming full exercise of the warrants, MSC's total investment in AMR will be $34.3 million.

The proceeds from the sale of the units and from exercise of the warrants will be used for the development of AMR's Ban Phuc nickel project for which a mining license has been issued and for working capital purposes.

Dato' Dr. Mohd Ajib Anuar, the Group Chief Executive Officer and Executive Director of MSC commented; "This investment is part of MSC Group's strategic expansion into the mineral and metal resource sectors. The Group is confident that nickel is an attractive long term growth business and AMR is an excellent entry point".

Jim Askew, Chairman of the Board, commented; "The Board welcomes MSC as a long-term strategic shareholder and looks forward to working with them to further develop AMR into a premier base metals producer in Vietnam".

AMR also announced today that as a result of AMR obtaining a mining license for the Ban Phuc Nickel Project it has issued 4,666,666 common shares to an investor associated with the Santa Elena Group which owns an extensive portfolio of investments in a broad range of international resource properties. The issuance of the 4,666,666 common shares completes the second tranche of the private placement previously announced by AMR on October 11, 2007.

Company Profile: About AMR

Asian Mineral Resources Limited is currently engaged in the exploration and development of the Vietnamese located Ban Phuc Nickel Project in which it has a 90% interest.

For further details on the Company and its projects please refer to the website at www.asianminres.com.

About MSC

MSC Group is one of the world's largest integrated producers of tin metal and tin based products with interest in mining, smelting and downstream manufacturing of tin and tin based products. It has mining and smelting operations in Malaysia and Indonesia and exploration interests in gold and base metals in Australia.

For further details on MSC, please refer to its website at www.msmelt.com.

Forward-Looking Statements:

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Asian Mineral Resources Limited are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Asian Mineral Resources Limited's expectations are disclosed under the heading "Risk Factors" and elsewhere in Asian Mineral Resources Limited documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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