SOURCE: MPX Energia S.A.


September 15, 2009 10:48 ET

First Mineral Resource Technical Report for Colombian Concessions Identifies 110 Million Tons of Thermal Coal

Report Shows Potential for Open-Pit Mining

RIO DE JANEIRO, BRAZIL--(Marketwire - September 15, 2009) - MPX Energia S.A. ("MPX") (BOVESPA: MPXE3) (GDR I: MPXEY), announces that it has obtained the first CIM-compliant Mineral Resource Technical Report for its concession areas in the La Guajira district in Colombia ("Report"). Indicated and inferred mineral coal resources exceed 110 million tons, with high potential for open-pit mining. The resource estimate was based on a drilling campaign that covered 320 hectars (ha). MPX Colombia S.A., a wholly-owned subsidiary of MPX, holds mining rights over a total of 65,000 ha in the La Guajira district.

The Report was prepared by John T. Boyd -- an independent certifying company specialized in geology and mining -- in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards. John T. Boyd has worked in Colombia since the 80s, when it supported other large mining companies in the development of resources in the country.

The resources are classified as shown in the table below:

     Resources in La Guajira (Mt)
     Indicated        91.3
     Inferred         19.2
     TOTAL (Mt)      110.5

A total of 140 boreholes, of which 75 were positive, were drilled amounting to approximately 50,000 meters. Ongoing geological survey and drilling efforts should allow MPX to release a second report with new resource estimates as well as to reclassify part of the original indicated resources into reserves in 1Q10.

Additionally, deeper boreholes are being carried out in the region to evaluate the potential for underground mining. Initial results were quite promising. This first Report has not yet considered these results.


MPX has signed a Memorandum of Understanding with Construtora Norberto Odebrecht (CNO), aiming to jointly develop a port in Colombia, in an area close to MPX's mines in La Guajira. Moffatt & Nichol, a US company, was engaged to carry out location studies and develop the conceptual project for the future port. The estimated capacity for the project's first phase is 5MM tons/year.

MPX is also part of a group of companies in charge of the development of a port project called "Puerto Nuevo," in the Ciénaga region, and holds rights over a handling capacity of up to 4.8 MM tons/year. The "Puerto Nuevo" project has already obtained environmental license for the ground portion and is in ongoing discussions for the licensing of the maritime portion, aside from the development of the final feasibility study.

Moreover, MPX is seeking existing port solutions, trying to match coal needs foreseen for the enterprises under construction and future coal production.

In parallel, MPX has signed a Letter of Intent with Transportes Sánchez Pólo S.A. aiming to secure truck transportation from the mines to the port. Sanchez Pólo is one of the main coal transportation companies in Colombia, with over 30 years of experience.

Eduardo Karrer
CEO an IR Officer

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