Argosy Minerals Inc.

Argosy Minerals Inc.

March 08, 2005 13:49 ET

Argosy Terminates Agreement Over Albetros Diamond Project




MARCH 8, 2005 - 13:49 ET

Argosy Terminates Agreement Over Albetros Diamond

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 8, 2005) - Argosy
Minerals Inc. ("Argosy")(ASX:AGY), trading on the Australian Stock
Exchange under the symbol AGY, has advised Albetros Inland Diamond
Exploration Pty Ltd ("Albetros") of its intention to terminate the
Agreement over prospecting rights originally granted to Albetros by the
South African government over three farms in Namaqualand, South Africa.

The Agreement and subsequent amendments gave Argosy until August 31,
2004 to evaluate the diamond potential of the Albetros Project. However,
since the expiry of the original prospecting permit on March 15, 2004
the application for a new prospecting permit over the Albetros Diamond
Project has not yet been approved by the South African Department of
Mines and Energy ("DME"), and consequently no work has been performed on
the project since that date. Efforts to obtain a temporary permit from
the DME, under which exploration could continue, were not successful.

In terms of complying with the new Mineral and Petroleum Resources
Development Act, Argosy had been proactive with its long term
empowerment partner Umnotho weSizwe Diamond Company Pty Ltd. ("Umnotho")
and had previously entered into Black Economic Empowerment ("BEE")
transactions with that entity's holding company. As part of its
agreement for the acquisition of Albetros, Argosy had negotiated the
right to introduce Umnotho which acquired an immediate 15% interest in
Albetros. The acquisition of this interest in Albetros by Umnotho
resulted in Albetros meeting the initial Charter requirements as an
empowered company.

However the Department of Minerals and Energy recently issued a formal
clarification on the application of the Mineral and Petroleum Resources
Development Act and the BEE Charter. This clarification has
fundamentally changed the BEE requirements for pending applications for
prospecting rights for former state owned rights, such as for diamonds,
and requires BEE participation of not less than 51% during a one year
transitional period.

Given that the permit application was submitted fifteen months ago, in
good time ahead of its expiry, but as yet has not been granted, and
coupled with the fact that the original Agreement catered for an initial
15% BEE participation, Argosy cannot see its way forward to comply with
the clarification which is now a requirement for the granting of the

Consequently Argosy has terminated the Agreement with Albetros with
immediate effect.


Peter Lloyd, Chairman


This News Release includes certain "forward-looking statements" within
the meaning of Section 21E of the U.S. Securities and Exchange Act of
1934, as amended. All statements, other than statements of historical
fact, included in this release, including, without limitation,
statements regarding potential mineralization and reserves, exploration
results, and future plans and objectives of Argosy, are forward-looking
statements that involve various 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. Important factors that could cause actual results to
differ materially from Argosy's expectations are disclosed under the
heading "Risk Factors" and elsewhere in Argosy's documents filed from
time to time with the Australian Stock Exchange, the United States
Securities and Exchange Commission and other regulatory authorities. All
subsequent written and oral forward-looking statements attributable to
Argosy or persons acting on its behalf are expressly qualified in their
entirety by this notice.


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