Afri-Can Marine Minerals Corporation

Afri-Can Marine Minerals Corporation

March 16, 2005 11:08 ET

Afri-Can and Deep South Restructure Their Agreement Over the Haib Copper Deposit in Namibia




MARCH 16, 2005 - 11:08 ET

Afri-Can and Deep South Restructure Their Agreement
Over the Haib Copper Deposit in Namibia

MONTREAL, QUEBEC--(CCNMatthews - March 16, 2005) - Afri-Can Marine
Minerals Corp. ("Afri-Can") (TSX VENTURE:AFA), is pleased to announce
that it has signed an amended agreement with Deep South Mining (PTY)
Ltd. ("Deep South"), regarding the Option to acquire a 70% undivided
interest in the Haib Copper deposit in Namibia. The Haib Exclusive
Prospecting License is located in the south of Namibia near the South
African border.

The previous agreement, announced last year, contemplated completion of
a revised feasibility study. The amended agreement reflects the reality
of Haib's status as an advanced exploration project. During its due
diligence, Afri-Can determined that the feasibility study completed by
the previous owners of Haib was insufficient to support either the scale
of production or financing of the type contemplated in the previous
agreement. Afri-Can has discovered, however, that higher-grade sulfide
and oxide portions of the Haib deposit had not been separately
delineated, and that the development potential of these higher-grade
portions of the deposit is substantial. The project is now being
redesigned to delineate these specific portions of the deposit. Details
of the exploration programme will be disclosed when the planning process
has been completed.

Material terms of the amended agreement are as follows (all amounts are
expressed in Canadian dollars):

- A cash payment to Deep South of $200,000 and $50,000 of Afri-Can
shares upon signature of the amended agreement;
- A cash payment of $250,000 to Deep South upon completion of the
Phase I drilling programmeme;
- Cash payments to Deep South of $200,000 per annum, for five years,
with the first such payment on the one-year anniversary of the
second $250,000 payment noted above;
- Exploration expenditures to a minimum of $3.0 million. Upon the
satisfaction of this condition, Afri-Can will be deemed to have
acquired an undivided interest of 55% in Haib;
- Upon completion of a positive feasibility study, Afri-Can will make
an additional cash payment of $1 million to Deep South. Afri-Can
will be deemed to have acquired an additional undivided interest of
15% in Haib. The total undivided interest of Afri-Can shall then be
70%. Funding thereafter will be on a pro-rata basis;
- Upon the commencement of mining operations, Afri-Can shall make a
further cash payment of $1 million to Deep South;
- Afri-Can shall have a call option on 20% of Deep South's remaining
30% interest(i.e. two-thirds of Deep South's holdings) for a cash
payment of $2 million and a 1% net smelter royalty, such option
being exercisable for a period of up to 36 months following
completion of the feasibility study.

For comparison, the material terms of the original agreement were as

To acquire the Option on the Haib project, Afri-Can would have
incurred the following payments:
- A cash payment of $100,000 upon regulatory approval of the
agreement; and
- A cash payment of $500,000 upon completion of favorable due
diligence within 120 days of regulatory approval.

To exercise its Option, Afri-Can would have incurred the following
exploration expenses and made the following payments:

- Within 2 years following the completion of its due diligence, Afri-
Can would have incurred expenditures to a minimum of $2 million in
exploration activities in order to prepare an updated bankable
feasibility study;
- No later than 30 days after completion of a bankable feasibility
study, Afri-Can would have issued $5.5 million of its common shares
to Deep South, at a market discount of 10%, and 2 million warrants
exercisable at a market premium of 30%, exercisable for a period of
3 years;
- Upon completion of production financing for the project, Afri-Can
would have made a final cash payment of $5 million;
- Further to the acquisition of 70% by Afri-Can, Deep South would
have had an option to sell its remaining 30% for a cash payment of
$5 million and a 2% net smelter royalty.

The amended agreement is subject to the approval of Canadian regulatory

Pierre Leveille, President and Chief Executive Officer of Afri-Can,
stated, "We are pleased with this amended agreement as it reflects
better the more prospective status of the project and the project is
economically more attractive."

The Haib copper deposit is an Exclusive Prospecting License (EPL # 3140)
covering 74,563 hectares and is located in the Karas region, 8 km from
the Orange River in the south of Namibia. The project contains a large
porphyry copper-molybdenum deposit hosted within quartz-felspar
porphyry. The NI 43-101 Technical Report completed on October 22, 2004,
confirms that the indicated resource in the higher grade section of the
deposit totals 292 million tonnes grading 0.46% copper, equivalent to in
excess of 2.9 billion pounds of copper in situ.

Afri-Can is a Canadian company, actively involved in the acquisition,
exploration and development of major mineral properties in Namibia.
Afri-Can's large and prospective license holdings, together with its
growth strategy, place it as the partner of choice for Namibian
Empowerment Groups.

The TSX Venture Exchange (TSX) does not accept responsibility for the
adequacy or accuracy of this release.

This press release contains certain "forward-looking statements", as
identified in Afri-Can's periodic fillings with Canadian Securities
Regulators that involve a number of 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.

Shares outstanding: 85,215,975


Contact Information

    Pierre Leveille
    President & CEO
    Bernard J. Tourillon
    Executive V.P. and CFO
    John Stella
    Investor Relations
    (514) 846-2133
    (514) 846-1435 (FAX)