January 15, 2008 14:56 ET

MMX Executes Agreement for the Purchase of Minerminas

RIO DE JANEIRO, BRAZIL--(Marketwire - January 15, 2008) - MMX Mineração e Metálicos S.A. ("MMX" or the "Company") (BOVESPA: MMXM3) (TSX: XMM), pursuant to article 157 of Law 6404/76, and CVM Instruction No. 358/02, hereby makes the following announcement:

The Company has entered into an agreement with the shareholders of Minerminas - Mineradora Minas Gerais Ltda. ("Minerminas"), by which AVX Mineração Ltda. ("AVX"), its direct subsidiary, will, subject to certain conditions that are customary to this type of transaction, acquire 100% of the issued and outstanding shares of capital stock of Minerminas.

Consummation of the purchase of Minerminas by AVX should occur in the first quarter of 2008 upon fulfillment of the above-mentioned conditions. With the conclusion of the operation, AVX will pay as consideration for 100% of the shares of Minerminas the purchase price of US$125,000,000, payable in 7 semi-annual consecutive installments.

Minerminas operates an iron ore mine adjacent to the operations of AVG Mineração S.A. ("AVG"), an indirect subsidiary of the Company, and also owns other mining rights and leases in the Serra Azul region, in Minas Gerais.

According to information provided by Minerminas, the company produced approximately 700,000 tons of iron ore in 2007. Based on the Company's estimates, the Minerminas production may reach 2.6 million tons in 2008 with the following breakdown: 550,000 tons of lump, 1.9 million tons of sinter feed and 150,000 tons of pellet feed.

The Company, through its subsidiary AVX, should merge the operations of AVG with those of Minerminas in order to achieve synergies and efficiency gains. The Company estimates that the integrated operations of AVX will result in iron ore production of 6.1 million tons in 2008, while engineering studies will be carried out to increase production to 8 million tons in 2009. For this, the Company plans to invest US$ 8.1 million in 2008 to improve operations in Minerminas, in addition to the investments planned for the expansion of production at AVG.

For more information, please contact

Luiz Rodolfo Landim Machado
Executive President and Investor Relations Officer
MMX Mineração e Metálicos S.A.

FORWARD-LOOKING STATEMENTS: This material fact contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities laws concerning the proposed acquisition operation and the business plan, the operations and financial performance and condition of MMX, and estimated production and mine life of the acquired mineral project. Except for statements of historical fact relating to MMX, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate," "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are made taking into consideration a number of assumptions and, therefore are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Assumptions upon which such forward-looking statements are based include MMX and its subsidiaries being fully successful in acquiring 100% of the issued and outstanding shares of Minerminas, any eventual third party, regulatory or governmental approvals for the acquisition operation being obtained, all required environmental and other licenses being obtained and all other conditions to the completion of the acquisition transaction will be satisfied or waived. Many of these assumptions are based on factors and events that are not within the control of MMX and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, variations in ore grade or recovery rates, risks relating to international operations, fluctuating metal prices and currency exchange rates, changes in project parameters, the possibility of unanticipated costs and expenses, failure of plant, equipment or processes to operate as anticipated, the failure to obtain necessary licenses or permitting, the acquired mineral project not being integrated successfully or such integration proving more difficult, time consuming or costly than expected, and other risks of the mining industry. Although MMX has attempted to identify the important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. MMX undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

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