Ecometals Limited
FRANKFURT : GDQ
BERLIN : GDQ
TSX VENTURE : EC

Ecometals Limited

May 25, 2010 09:15 ET

Brazil Court Decision-A Major Step Forward in Ecometals' Stockpiled Manganese Mineralised Material Project

TORONTO, ONTARIO--(Marketwire - May 25, 2010) - Ecometals Limited (TSX VENTURE:EC)(BERLIN:GDQ)(FRANKFURT:GDQ)

Ecometals Limited (the "Company") is pleased to announce that on May 14th, 2010 the State Judge of the 4th Civil Court of the District Court of Macapa, State of Amapa, Brazil ruled that the responsibility for any environmental liabilities arising out of the former mining activities carried out by ICOMI at the Serra do Navio mine belongs exclusively to Alto Tocantins Mineracao Ltda (Tocantins). This court decision removes Ecometals from any potential claim in respect of any historical environmental liabilities or rehabilitation associated with the former mining activities at the Serro do Navio manganese mine.

The environmental legacy from the former ICOMI mine at Serra do Navio involves rehabilitation of the site, which was initiated but never completed by Tocantins. The State Judge has ordered that Tocantins must present a Plan for Recovery of Degraded Areas (PRAD) within 90 days, to be reviewed and approved by the Public Prosecution Service of the State of Amapa. ATML are then legally bound to complete the PRAD to the satisfaction of Regulatory authorities.

This judicial decision removes an obstacle that has been until now delaying the issuance of environmental permits to Ecometals, which are required before the Company can begin to commercialize the 3.3 million tonnes of stockpiled manganese mineralized material at Serro do Navio. Prior to this decision, the Environmental Agency of the State of Amapa, which is responsible for issuing the permits, had requested the Company to present a PRAD for the Serra do Navio mine, based on its misunderstanding that the Company had joint obligation with Tocantins for any historical liabilities and/or rehabilitation work arising out of the former mining activities at the Serro do Navio manganese mine.

Ecometals has independently prepared an Environmental Management Plan for the processing and shipping of the stockpiled manganese mineralized material, which is considered a low impact activity. The stockpiled manganese mineralized material at Serro do Navio is owned by Ecometals Manganese do Amapa Ltda, whose shares are 66% owned by Ecometals, with the balance of the shares owned by Tocantins.

CEO Fran Scola said, "With the clarification of this issue we are of the opinion that the issuance of the required Environmental Permits to start this project has now moved a good step forward. Development of the manganese project will be a positive result for all stakeholders."

About Ecometals

Ecometals Limited is a Canadian TSX Venture Exchange listed mineral exploration and development company focused on mineral resources in Latin America. Apart from its gold exploration projects in Ecuador, Ecometals also has significant manganese, gold and iron projects in Brazil at grass roots and development planning stages.

Safe Harbour Statement:

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes statements regarding the issuing of environmental permits and the start of the manganese project, and consequent potentially positive results to stakeholders. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, either delay, or non issuance, of environmental permits. Although Ecometals believes that the assumptions and factors used in submitting the forward-looking information in this news release is reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Ecometals disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

"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."

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