Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

January 20, 2011 08:00 ET

Amazon Provides Key Milestones for 2011 and Issues New Stock Options

TORONTO, ONTARIO--(Marketwire - Jan. 20, 2011) - Amazon Mining Holding Plc (TSX VENTURE:AMZ) ("Amazon" or the "Company") is pleased to provide a corporate update outlining some of the milestones targeted for 2011. The Company is currently developing the Cerrado Verde Potash Project ("Cerrado Verde") and Apatita Phosphate Project ("Apatita").

Amazon has over $17 Million in cash after successfully completing financings recently announced. The two largest new shareholders are based in Latin America and both have significant expertise in the region's fertilizer and farming sectors.

The Company expects to be fully funded up to the plant construction phase and will target achieving the following key milestones in 2011:

Cerrado Verde Potash Deposit ("Cerrado Verde")

Cerrado Verde has the potential to host billions of tons of potash rock (see NI 43-101 technical report filed with SEDAR on December 13, 2010). The Company will undertake a wide-spaced drilling campaign aimed at producing a NI 43-101 compliant resource estimate for the whole deposit extension which exceeds the length of 100km. The target is to complete the drilling campaign by Q3/2011. In addition, the Company will conduct further drilling to upgrade the current 43-101 compliant resource to measured and indicated level by the end of Q2/2011.

ThermoPotash ("TK"), Sulphate of Potash ("SOP") and Potassium Chloride ("KCl")

TK Scoping Study prepared by SRK Consulting demonstrated strong project economics (see release dated October 28, 2010). In addition, the processing route developed at the University of Cambridge ("Cambridge Process') for which the company has filed patents (see release dated December 2, 2010), has potential to economically produce conventional potash fertilizers, namely SOP and KCl, from our extensive potash rock resources.

The Company will continue to focus on advancing the development of TK. Amazon expects to register TK with the Ministry of Agriculture in Q3/2011. Concurrently, Amazon plans to continue studying the viability of the Cambridge Process of producing conventional potash fertilizer as a possible phase two development initiative. If successful, the Company plans to issue a scoping study by Q3/2011.

Apatita Phosphate Project ("Apatita")

Drilling at Apatita has proved the Nau de Guerra and Alto da Serra are two highly promising prospects. The Company will continue drilling with a view of producing NI 43-101 compliant resources in Q2/2011. In addition, the Company will drill another 5 prospects in a trend over 30km long with P2O5 results as high as 29%. About 95% of Brazil's phosphate production takes place less than 200km from Apatita.

Corporate

Amazon intends to change its name to Verde Potash Plc. The name change will need to be approved at the Company's next Annual Shareholder's Meeting to take place Q2/2011. If approved, the name will better reflect the Company's business and focus.

Cristiano Veloso, President and CEO said: "In 2010, Amazon followed a simple, but effective plan to realize value for our ThermoPotash project; drilling out an initial resource, defining a route for production, testing the product's effectiveness, and presenting the market with third party validated economics. In 2011, we endeavour to repeat that formula for the Apatita phosphate project and the ground breaking Cambridge SOP/KCl process, while we continue to advance our ThermoPotash project towards production."

Other Matters

Amazon has issued 75,078 additional share purchase options to Officers of the company and 65,723 additional share purchase options to the CEO. Both sets of options are exercisable at $8.30, expiring January 19th, 2016 and pending TSX regulatory approval.

About Amazon

Amazon Mining is a mineral exploration and development company founded by Brazilians in 2005. The company is focused on the development of the Cerrado Verde project. Cerrado Verde is a source of a potash rich rock from which Amazon plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product. Amazon Mining is a UK public company with shares listed on the Toronto Stock Exchange since November 2007.

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

Jed Richardson, Vice President of Corporate Development

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.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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
    +1 (416) 866-2966
    +1 (416) 866-8829 (FAX)
    jed@amazonplc.com
    www.amazonplc.com