SOURCE: Hidalgo Mining International

October 16, 2007 09:00 ET

Hidalgo Mining (HMIT) Enters Into LOI to Acquire Advanced Industrial Minerals LTD.

NEW YORK, NY--(Marketwire - October 16, 2007) - Hidalgo Mining International (PINKSHEETS: HMIT), an innovative mining company headquartered in Port Washington, N.Y., announced today that the company has successfully entered into a Letter of Intent to acquire Advanced Industrial Minerals LTD. in Sierra Leone, West Africa.

Mark Daniel Klok, President of HMIT, stated: "Acquiring Advanced Industrial Minerals LTD. would position the company to enter production within days of consummating a final agreement. This proposed acquisition would give HMIT almost immediate revenue, all the necessary equipment to operate on a commercial scale, and the platform to increase the existing operations output while continuing to define the gold and mineral resources throughout the entire property. We expect to see very profitable results from the production of Tantalum, Titanium Oxide and Gold throughout this entire region.


Advanced Industrial Minerals (AIM) is an exploration and mining company dedicated to the commercial development of the strategic mineral resources of Sierra Leone, West Africa. Currently, the Company is focused on the exploration and mining of ores containing titanium oxide and tantalum -- a rare, strategic metallic element used to produce tantalum powder, a key high-tech component in the electronics, medical, telecommunications and aerospace industries. With exclusive licenses to extensive alluvial lands rich in tantalum-containing ore deposits, the Company is well positioned to benefit from the rapidly growing global demand for tantalum oxide, titanium dioxide and tantalum metal powder. Acting under its Exclusive Prospecting License (EPL), the company has conducted preliminary geological testing on a 7.5 square mile segment within its primary concession area in the Mawuru Drainage Basin. Currently, the company has all the necessary equipment on location to produce at a rate of 30 cubic yards per hour.


Previous testing, along with pre-existing geological survey data from previous ilmenorutile and gold mining entities, revealed large alluvial deposits of tantalite/columbite and ilmenorutile ores containing concentrations of tantalum oxides, along with concentrations of niobium and titanium dioxide. Tantalum alluvial ores were uncovered at an average of 5 to over 15 pounds per cubic yard. The tantalum grades found in these alluvial materials ranged from 5.75% to higher than 22% contained Ta2O5. As a result of these exploratory operations, the company extracted a bulk sample of 20 MT of ilmenorutile ore. This ore was subsequently shipped to Cabot Performance Materials of Cabot Corporation, Boyerstown, Pennsylvania, one of the two leading tantalum refiners in the world. Pursuant to a purchase order with the Company, Cabot assayed and refined the ore at its expense, and purchased all extracted tantalum pentoxide on a per pound basis. The puchaser successfully received the shipment and after assay purchased the ore and subsequently issued a purchase order for further delivery of the materials. This established conclusively the commercial viability of the company ores.


Tantalum (Ta) is a refractory metal that is ductile, easily fabricated, highly resistant to corrosion by acids, a good conductor of heat and electricity, and has an extremely high melting point.

The major use for tantalum is in the production of electronic components, mainly in tantalum capacitors for use in personal electronics, such as mobile phones, and computers. In 2001, more than 60% of total tantalum consumed was in the electronics industry. Applications for tantalum capacitors include computers, communication systems, instruments and controls for aircraft, missiles, ships and weapon systems. In its own way, tantalum is as essential as platinum or palladium to the modern industrial economy. It is a key driver of the entire global electronics industry and also makes space flight possible. It is considered a critical material to the United States because of its use in the defense industry, and is regularly stockpiled -- sometimes at great cost to the taxpayers -- by the United States Defense Logistics Agency.

The management of (AIM) is quoted as saying, "We are extremely excited about the prospect of this amalgamation and the notion that our companies can benefit from the synergy of our assets. Hidalgo has several advanced stage exploration projects with potential of production in the near future and our (AIM) project in Sierra Leone will enjoy its first full year of production this year. Our current production rates for this season are 30 metric tons of tantalum-concentrate per month, and our plans are to increase our production quantities over this season. Any revenues generated from our operation will certainly buttress our companies' growth strategies and the diversification of our resource base will help to add value to the group."

Mark Klok went on to state, "With AIM's anticipated revenue of $3.5 million for the coming year, combined with HMIT's anticipated revenue from their existing projects, HMIT could generate well over $10 million in their first year of production, obviously not including the additional acquisitions HMIT anticipates closing in the near future."


Hidalgo Mining International (PINKSHEETS: HMIT), an innovative mining company located in Port Washington, N.Y., strives to increase its shareholders while implementing an aggressive rollup plan to achieve mining production on a global scale. HMIT's management and directors feel they have the vision, drive and experience to become a highly successful, major multi-national producing mining company.


The described potential acquisition cannot be guaranteed. The acquisition of AIM by HMIT is contingent upon multiple criteria that must be approved by both organizations as well as governing agencies. This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this news release other than statements of historical fact are "forward-looking statements" that are based on current expectations and assumptions. These expectations and assumptions are subject to risks and uncertainty, which could affect Hidalgo Mining Internationals' future.

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