Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

November 26, 2010 16:10 ET

Amazon Provides Third Quarter 2010 Corporate Update

TORONTO, ONTARIO--(Marketwire - Nov. 26, 2010) - Amazon Mining Holding Plc (TSX VENTURE:AMZ) ("Amazon" or the "Company") reported its unaudited interim consolidated financial statements for the three month period ended September 30, 2010 and provides the following corporate update.

During the three-month period ended September 30, 2010, Amazon incurred a net loss of $539,180 compared to a net profit of $330,505 for the three-month period ended September 30, 2009. The increased loss in the third quarter of 2010 was primarily due to reduced exchange rate gains and increased consultancy expenses. Amazon currently has a working capital position of approximately $4.5MM. The Company maintains a strong cash position and continues to progress with Cerrado Verde.

Subsequent Events

  • Management Additions: Pedro Ladeira, Vice President Engineering and Eduardo Spolidorio, Marketing Manager, have joined the company to add plant construction and agronomic marketing skills to the management team, as Cerrado Verde is advancing towards feasibility study stage (see release dated October 13, 2010).
  • Preliminary Economic Assessment ("PEA"): Amazon reported a summary of PEA, prepared by SRK Consulting and ECM Projetos Industrias. Two scenarios were examined, a 1.1MM tpa operation and a 2.2MM tpa, both showed very low capital cost as expected and robust economics boasting internal rates of return of 32.9% and 40.2% respectively (see release dated October 28, 2010).
  • Apatita Phosphate Project: Reported promising drilling results on 2 of 3 prospects in the first round of drilling on the new project. The Company plans to drill 5 additional prospects and seek to establish 43-101 compliant resource estimates on the two prospects that have already shown promising results (see release dated November 22, 2010).
  • University of Cambridge Technology Development: University of Cambridge, United Kingdom led by Professor Dr. Derek Fray continues to evaluate new routes capable of producing Muriate of Potash (KCl) and Sulphate of Potash (SOP) from Cerrado Verde's potash rock. The Company will provide a comprehensive update when further progress is achieved and considered to be material.

Cristiano Veloso, President and CEO, said: "Amazon continues to focus on its exciting Potash project. At the same time, we congratulate our team on the excellent results achieved at the Apatita Phosphate project which represents another significant potential source of shareholder value".

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