SOURCE: Leader Mining International Inc.

November 23, 2005 17:25 ET

Cogburn Magnesium Project

Project Progress Report

CALGARY, AB -- (MARKET WIRE) -- November 23, 2005 -- Leader Mining International Inc. (TSX-V: LMN) management is pleased to report the results to date of the ongoing advancement of the Cogburn Magnesium Project located near Hope, British Columbia, Canada. Since September 10, 2004 all work has been conducted through the Company's wholly owned subsidiary, North Pacific Alloys Limited ("NPAL").

Hatch Associates Ltd., a full-service metals engineering firm, is the lead consultant on all process and technical aspects of the Project. Hatch Associates Ltd., produced the Production Feasibility Study in 2003 and the latest Project Report in 2005.

On October 18, 2005, NPAL filed its Draft Terms of Reference for the Cogburn Magnesium Project to the BC Environmental Assessment Office. The Project is described as a US$1.3 billion integrated quarry and magnesium reduction plant, producing 131,000 metric tons of high-purity magnesium alloys per annum.

Following are the principal Project activities:

Production Feasibility Study

On May 7, 2003 LMN received a Production Feasibility Study for the Project from its consulting engineer. The Feasibility Study indicated that the Project, at that time, was considered technically feasible and economically viable. During 2004 and 2005 engineering work on the Project progressed as the following work-scope items were completed: (1) simulation modeling for optimization of: (a) process operations, (b) plant capital, and (c) start-up and ramp-up, (2) assessment of potential environmental and health risks, and (3) quantification of emissions to the atmosphere. This work, which was required for defining Terms of Reference for the Environmental Assessment, is contained in a Summary Report dated October 20, 2005.

Process Technology

On May 16, 2002 LMN signed a Technology Transfer Agreement with the State Research and Design Titanium Institute of Zaprozhye, Ukraine ("STI") and the joint stock company VAMI of St. Petersburg, Russia to transfer technology related to the key process areas for the Cogburn Magnesium Project. The STI/VAMI technology for production of magnesium metal is a commercially proven technology that was recommended by LMN's consulting engineer, as the world's leading magnesium reduction technology. The agreement between LMN and STI/VAMI provides for LMN to acquire a STI/VAMI technology license for the Cogburn Magnesium Project and it includes technology performance guarantees by STI/VAMI. Representatives of STI/VAMI had input to the crystallization, dehydration, electrolyses and casting sections of the 2005 Summary Review recently completed.

Environmental and Permitting

LMN filed a Preliminary Project Environmental Application with the British Columbia Environmental Assessment Office in mid 2002. Comments on the application from provincial and federal government agencies facilitated scoping of the environmental and socio-economic aspects of the Feasibility Study to accommodate the necessary activities and to address the defined parameters. In 2005 further field work on flora/fauna studies (Keystone Wildlife Research Ltd.) and dispersion modeling of potential emissions to the atmosphere have been ongoing (Levelton Consultants Ltd.).

On October 18, 2005, NPAL filed its Draft Terms of Reference for the Cogburn Magnesium Project to the BC Environmental Assessment Office.

Lorax Environmental Services Ltd. is the lead consultant on all of the environmental and permitting aspects of the Cogburn Project.

BC Hydro Interconnection Study

NPAL signed an Interconnect Study agreement with BC Hydro in October 2004 for providing 250MWs of electrical energy capacity to the Project. The Interconnect Study was completed April 2005 showing the viability of constructing a 500kV substation adjacent to the proposed Cogburn plant at Ruby Creek. In addition, it was determined that the footprint of the substation allowed surplus land owned by BC Hydro to be available for lease to NPAL for some Cogburn plant infrastructure. BC Hydro still needs to complete a full BC power system grid study to determine the impact of the proposed 250MW load at Cogburn.

Ian Hayward International Ltd. is the lead consultant regarding Cogburn Project electrical demand and system design to the proposed plant.

Water Supply

Negotiations are continuing with Terasen Utility Services toward signing a contract for providing process water, domestic water and domestic waste wash water management. One of the conditions in the negotiations is that Terasen will form a joint venture with local First Nations to provide service to the Project under the terms of the operating agreement being negotiated with NPAL.

AMEC Earth & Environmental have provided a proposal for development, testing and assessment of environmental impacts associated with the proposed production well to be located in the alluvial gravels near the Fraser River. NPAL intends to undertake this test work once the EA Terms of Reference review is concluded.

Securing of Special Use Permit on Access Roads

On October 3, 2005 the BC Ministry of Forests granted NPAL a Special Use Permit for the Garnet and Talc road system. This 26 km road system connects the Emory Zone magnesium deposit and the proposed processing plant site at Ruby Creek.

Surface Land Assembly

In addition to the BC Hydro lands available to NPAL for lease, the Company has purchased, in November 2005, 16.2 hectares of additional surface lands in the proposed plant area. Negotiations are continuing with other land owners.

Signing of Operating Contract

On September 7, 2004 a 15 year operating agreement was signed with Emil Anderson Construction Inc. for quarrying, ore transportation and residue management. As a part of the agreement, Emil Anderson is continuing negotiations with local First Nations to form a 50/50 joint venture to serve the operating agreement with NPAL.

Marketing and Off-Take Contracts

Since completion of the Feasibility Study in 2003 the magnesium price has recently been in the US$1.50 to US$1.60 per pound range. The Feasibility Study, at that time, indicated that the Project was considered technically feasible and economically viable at a magnesium price of US$1.27 per pound.

Mr. Herbert Roach, an experienced magnesium marketing and sales expert, has been retained by NPAL and he has contacted major magnesium users in the aluminum and automotive industries. Interest in Cogburn has been shown by the North American aluminum industry. However, with the economic challenges faced by the major North American auto makers, potentially one of the biggest magnesium users, there have been no meaningful discussions to date.

In recent months two technical advances have been announced that could be of significance to the magnesium industry. They are: (1) the October 8, 2005 issue of The Economist reports on the development of magnesium silicate nanopowder for use in internal combustion engines to "repair" tiny cracks and abrasions in the cylinders and pistons thereby improving combustion efficiency, and (2) the October 2005, Volume 1 of AZojomo Journal of Materials Online reports on new alloys, dispersed with magnesium silicate particles, that improve wear resistance and demonstrate a low friction coefficient.

Mr. Derrick Webb, Norsk Hydro ASA (leading global magnesium provider) presented a paper titled, "Magnesium Supply and Demand 2004," at the International Magnesium Conference in Berlin in May 2005. The paper listed the reported electrolytic magnesium projects and Cogburn was shown as the largest of six projects that are advancing toward development.

Seeking Major Participant to Develop the Project

NPAL management continues to search for a major company with the capability and the capacity to become the operator and/or major owner of the Project.

Main Areas of Concern

There are two areas of concern, they are: (1) marketing continues to represent the most challenging aspect to the Project, and (2) the present "heated" business cycle in Western Canada, because of the Oil Sands developments and the 2010 Olympics, has caused a serious shortage of skilled trades and materials.

The technical information contained in this release was prepared by John Chapman, B.Sc., P.Eng., FCIM., a "qualified person" within the meaning of National Instrument 43-101 for the Cogburn Project.

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