Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

August 20, 2008 09:32 ET

Amazon Discontinues Terra Branca Diamond Project

TORONTO, ONTARIO--(Marketwire - Aug. 20, 2008) -

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

Amazon Mining Holding plc ("Amazon" or the "Company") (TSX VENTURE:AMZ) has elected to discontinue Terra Branca Diamond Project ("Terra Branca") located in Minas Gerais state, Brazil.

Amazon's Board of Directors has determined that given adverse market conditions, the Company has chosen not to exercise its option to acquire Terra Branca. Amazon has ceased all ongoing property payments, returning control to the underlying owner. The Company reports that attempts to vend or joint venture Terra Branca to a third party have been significantly hampered by poor market conditions.

Under the terms of the Terra Branca option agreement, Amazon was due to pay $900,000 in August 2008 with a further $2,000,000 in subsequent staged payments. Prospective project economics have weakened markedly since commencement of the option agreement. The diamond market has seen little to no change in the US dollar price for small to medium sized diamonds whilst the currency (Brazilian Real) measured against the US dollar has appreciated considerably. In addition, continuing weak market acceptance of alluvial diamond projects deems it prudent to cease ongoing property payments further protecting shareholder funds at this time.

Amazon confirms that subsequent to this announcement, the Company will no longer hold any properties or exploration tenements requiring staged payment obligations. Amazon has staked its Madeira property and is the sole owner of those mineral rights.

Commenting, President & CEO Cristiano Veloso, said: "Despite our share price performance, Amazon retains a strong treasury and a demonstrable ability to identify noteworthy opportunities in Brazil. We view the Company as being in an advantageous position in the small capitalization exploration peer group. The continuation of challenging market conditions will afford new and exciting opportunities."

About Amazon

Amazon is a mineral exploration company listed on the TSX Venture Exchange engaged in acquiring and developing gold exploration properties in Brazil. Its strategic focus is to acquire projects with demonstrated potential for hosting economic gold deposits and to define resources through exploration and drilling campaigns. Amazon's current cash position is approximately C$9.3 million.

On behalf of the Board of Directors of Amazon Mining Holding Plc,

Cristiano Veloso, President & Chief Executive Officer

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.

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.

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
    (416) 866-2966
    (416) 867-9393(FAX)
    jed@amazonplc.com
    www.amazonplc.com