Augyva Announces Positive Preliminary Economic Assessment for the Duncan Lake Iron Project

MONTREAL, QUEBEC--(Marketwire - March 22, 2013) - Augyva Mining Resources Inc. ("Augyva or the Company") (TSX VENTURE:AUV) is pleased to announce that it has received the results of a Preliminary Economic Assessment ("PEA") prepared by Met-Chem Canada Inc. ("Met-Chem") for the Company's 35% owned Duncan Lake Iron Project (the "Duncan Lake Project") in northern Québec. Augyva and Century Iron Mines Corporation (TSX:FER) ("Century") are joint venture partners on the Duncan Lake Project.

DUNCAN LAKE PROJECT PEA KEY ESTIMATED RESULTS BASED ON 100% OWNERSHIP OF THE PROJECT:

• Net Present Value ("NPV") of $4.1 billion (pre-tax) at 8% discount;
• Internal Rate of Return ("IRR") of 20.1% (pre-tax);
• Payback 4.2 years
• Mine life 20 years at 12 million tonnes per year ("Mtpy") pellet production
• Initial project capital $3.8 billion
• Average site operating cost $59.17/tonne of pellet
• Accuracy of the estimate +/- 35%

SUMMARY

The PEA is based on the production of 12 Mtpy of acid pellets (66.3% Fe, 5.1% SiO₂) year-round from the Duncan Lake deposits 3 and 4 (see Augyva news release dated August 27, 2012 for greater details). Mined resources will be transported to the concentrator located near deposit 3. Concentrate will be pumped from the concentrator 135 km by pipeline to the pellet plant close to the town of Chisasibi on the shore of James Bay, near Stromness Island. Pellets will be stored close to the pellet plant and the Duncan Lake dedicated port, and then shipped to ports in Europe and China, during the 4 month ice-free period. The project is planned as a mixed local and fly-in/fly-out operation, with camps in Radisson and at the proposed pellet and port facilities near Chisasibi.

Peter R. Jones CEO of Augyva said, "The mining plan produces 12 million tonnes/annum of seasonally shipped pellets generating an attractive project NPV and IRR". He also said, "This project is independent of the complexities of existing rail lines and ports and I look forward to the next phases of evaluation and development".

Mining

In-pit resources were estimated from the optimal economic pits that were defined using the operating cost and sales prices (defined below) and based on the August 2012 Met-Chem resource models. The in-pit resources include measured, indicated and inferred resource categories. A total of 800 Mt of resources will be mined over a 20 year period from deposits 3 and 4 using 400 short ton haul trucks and 37 m³ hydraulic excavators. Other mining highlights include:

• Average annual resource production, 41 Mt grading 24.8% T Fe;
• Average stripping ratio, 1.8:1 (1.3:1 for the first five years);
• Average open pit haulage distance, 4.0 km to crusher, 3.8 km to waste stockpiles.

Metallurgical Testing

Mineral processing estimates were based on metallurgical test work performed on representative samples of the Duncan Lake Project by SGS Lakefield facilities and COREM Laboratory. Results from the following tests were used as the basis for the PEA:

• JK Drop-weight;
• Bond Low-energy impact and Bond abrasion tests;
• SAG Mill Comminution conducted on seven different lithologies;
• Bond rod mill and Bond ball mill grindability tests conducted on seven different lithologies;
• Coarse cobbing with a dry magnetic drum;
• Davis tube tests.

Concentrating

The Duncan Lake concentrator will be located adjacent to Deposit 3. Mined mineralized material will be crushed using gyratory crushers before being conveyed to three concentrator process lines. Each process line will consist of:

• SAG Mill grinding circuit that produces a P₁₀₀ of 3,360 um;
• Cobber magnetic separators;
• Secondary grinding stage using two (2) ball mills per line operating in a closed loop with cyclones (P₈₅ product of 75 um/200 mesh);
• Magnetic separators (cleaner/finisher magnetic separators).

Concentrate will be thickened to 65% solids prior to pumping to the pellet plant. Tailings are also thickened before being pumped to the tailings ponds. Final concentrate will grade 67.6% Fe and 5% SiO₂.

Pelletizing and Pellet Storage

The pellet plant located near the port facilities of Stromness Island will process concentrate in two (2) 6 Mtpy pellet production lines. Each pelletizing line consists of:

• Vacuum disc filters (to dewater the concentrate);
• Mixing units for the bentonite and concentrate;
• Balling units to produce green pellets;
• Induration machine to produce the final pellets.

Water from the vacuum disc filters will be reclaimed and returned to the concentrator in a return water pipeline.

Final pellet grade will be 66.3% Fe and 5.1% SiO₂.

The pellet storage area will be designed to store up to eight months of pellet production. The project will thus be able to support shipping 12 months of pellet production during the 4 month ice-free shipping season. The storage area will be close to the pellet plant and the dedicated Duncan Lake port.

Port Facilities and Pellet Shipping

Century engaged Portha Inc., a firm specializing in port and shipping studies, to determine shipping alternatives for Duncan Lake production. Portha selected Stromness Island, north of Chisasibi as the best port location, with water depths allowing access for 185,000 dwt cape-size vessels. Based on historical data Portha also estimated that the ice-free season would be from June through September inclusive.

The port design will include the capability to load two ships simultaneously. A conveyor would transfer pellets from storage near the pellet plant to the ship loaders at the port.

Portha estimates the shipping costs from Chisasibi to China at US$35/tonne pellet. A previous study commissioned by Century estimated shipping costs to Europe (Rotterdam) at US$15/tonne pellet.

The PEA assumes 70% of annual pellet production is shipped to China, and 30% to Europe, at an average shipping cost of US$29/tonne pellet.

Pellet Sales Price and Market Study

Century engaged an independent market study to estimate long term selling price for its Duncan Lake pellet production. The results are listed below and were used in the PEA:

• US$125/tonne 62% Fe Concentrate, CFR China as long term iron ore price
• US$134/tonne for 66.3% Fe grade of Duncan Lake Pellet
• US$35/tonne pellet premium (historial average)
• US$169/tonne Duncan Lake Pellet, CFR China (basis for PEA)

Operating Cost Summary

The PEA operating costs were estimated based on first-principles, economic assumptions shown below and estimates of consumable prices from suppliers. Average life-of-mine operating costs were estimated as:

Operating Costs	$/tonne of pellet
Mine production	24.02
Concentration and slurry transportation	16.86
Pellet production and handling	11.45
G&A and site services	4.84
Ship loading	2.00
Total	$59.17

Capital Cost Summary

PEA capital costs were estimated using supplier quotes where available and Met-Chem's cost database.

Capital Description	Initial Capital $ Millions
Mine	71
Crusher and ore storage	94
Concentrator	524
Mine and concentrator area infrastructure	67
Pipeline and water reclaim	311
Pellet plant and infrastructure	1,107
Pellet storage and Infrastructure	309
Port and ship loading	250
Power and communication	180
Service vehicles and equipment	14
Tailings storage and water treatment	40
Indirect costs	363
Contingency	503
Total Initial Capital	$3,833

Other Economic Assumptions

• Exchange rate: at par for 2013-2017, $0.95 CDN to US for 2018 and beyond
• Fuel price: $1.05 per litre for diesel, $0.62 per litre for Bunker C (pellet plant)
• Electricity rate: $0.09/kWh for mine and concentrator (primary transformation), $0.045/kWh for pellet plant (secondary transformation)
• Mine mobile production, auxiliary equipment and camp facilities are leased
• Sustaining capital costs: $665M, including $156M for closure costs

The preliminary assessment includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.

The mineral resource estimates discussed herein may be affected by subsequent assessments of mining, environmental, processing, permitting, taxation, socio-economic, legal, political and other factors. There is insufficient information available to assess the extent to which the potential development of the mineral resources described herein may be affected by these risk factors.

Technical Report

An NI 43-101 Technical Report entitled "NI 43-101 Technical Report - Preliminary Economic Assessment of the Duncan Lake Iron Property, James Bay, Québec, Canada," will be filed on SEDAR at www.sedar.com and on Century's website within 45 days of the date of this news release. The report will include a summary of the Preliminary Economic Analysis. The report is being prepared under the supervision of Daniel M. Gagnon, Eng. of Met-Chem, a Qualified Person as defined by NI 43-101 with contributions from Yves A. Buro, Eng., Schadrac Ibrango, P.Geo, PhD, Stephane Rivard, Eng., Charles Cauchon, Eng., Michel Bilodeau, Eng., Daniel Houde, Eng. Raymond, Gaudreault, Eng.

Qualified Persons

The PEA was prepared under the supervision of Daniel M. Gagnon, Eng. of Met-Chem. Mr. Gagnon is a Qualified Person as defined by NI 43-101 and Mr. Gagnon is independent of Century. Mr. Gagnon has reviewed and is responsible for the technical information contained in this news release. Mr. Gagnon has verified all the data disclosed in this news release.

The Duncan Lake Property

The Duncan Lake Property is an advanced exploration stage property comprised of approximately 534 mining claims covering approximately 25,602 hectares in the western part of the La Grande Greenstone Belt in the James Bay region of Québec located approximately 130 kilometres from the East coast of James Bay. The Duncan Lake Property is the subject of a joint venture agreement between Augyva and Century. The Company has a 35% interest in the Duncan Lake Property. Century holds a 65% interest.

About Augyva Mining Resources Inc.

Augyva Mining Resources Inc. (TSX VENTURE:AUV) is an exploration and development company. Its major project is its interest in the Duncan Lake Iron Project in the western part of the La Grande Greenstone Belt in Quebec.

In addition to the Duncan Lake Iron Project, Augyva holds a 100% interest in four other mineral properties, namely: Yasinski and Kali in the James Bay region and Senneville and Malartic in the Abitibi region. At these mineral properties, the exploration focus is for other than iron.

About Met-Chem

Met-Chem is an internationally renowned consulting engineering firm established in 1969 to provide all phases of geology, mining, mineral processing and engineering services throughout the world. From its headquarters in Montreal, Met-Chem offers the mining industry professional expertise that covers scoping, pre-feasibility and feasibility studies, basic and detailed engineering, procurement and construction management, training, start-up, commissioning and operations assistance.

Cautionary Statement

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Augyva's disclosure documents on the SEDAR website at www.sedar.com. Augyva does not undertake to update any forward looking information except in accordance with applicable securities laws.