G4G Resources Ltd.
TSX VENTURE : GXG

G4G Resources Ltd.

July 07, 2008 09:00 ET

G4G Resources and IMBS (Pty) Ltd Sign Joint Venture Agreement for the Conversion of Iron Ore Fines Into Hot Briquetted Iron

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2008) - G4G Resources Ltd. (TSX VENTURE:GXG) ("G4G") and Iron Mineral Beneficiation Services (Pty) Ltd (IMBS) announce the signing of a joint venture agreement for the use of the Finesmelt™ technology developed by IMBS. G4G will joint venture with IMBS to deploy the patented technology in North, Central and South America and by agreement in other global jurisdictions.

The basis of the joint venture agreement is for G4G to secure suitable resources and complete due diligence studies, whereby IMBS will determine the suitability of the iron ore resources through the laboratory scale Finesmelt™ test plant in South Africa. When the suitability of a resource is confirmed, G4G and IMBS will form a joint venture company on an equal participation interest and license the technology therein. All future costs and expenses will be shared equally in the preparation of a bankable feasibility study (BFS) and any and all future development costs.

"The agreement with IMBS fits very well with G4G's strategic objectives to produce iron ore and saleable iron units. Finesmelt™ is a unique process that converts otherwise waste iron ore fines into hot briquetted iron and pig iron. The IMBS technology utilizes thermal coal in the reduction process whereas other processes use higher priced coking coal," stated Peter Arendt, President and CEO of G4G resources Ltd. "The joint venture with IMBS is a strategic relationship which compliments G4G's iron ore projects in Sweden and adds additional value to shareholders."

IMBS has developed and is the beneficial owner of intellectual property for the conversion of iron ore fines and super fines (hematite and magnetite) into metallic iron units (hot briquetted iron) without agglomeration. It is the intention of G4G to acquire iron ore resources in North, Central and South America. The G4G management team is well equipped with all the necessary skills to determine the suitability and viability of these projects and bring them into production.

G4G also intends to evaluate the suitability of Finesmelt™ on iron ore from mineral properties being developed in Sweden. G4G plans to drill a total of 3,000 metres during 2008 on properties under option from Teck Cominco Limited's wholly owned subsidiary TCL Sweden Ltd. ("TCL Sweden"), located in the Norrbotten District of northern Sweden. (Refer to news releases of March 31, 2008 and June 10, 2008). Norrbotten is a world-class mining district which hosts the Kiruna and Malmberget iron ore mines.

The Geological Survey of Sweden (SGU) estimates that three of the properties under option (Masugnsbyn, Vittangi and Vathanvaara) have a combined resource of 134.2 million tonnes of iron ore grading between 25% and 39.7% Fe. (Note: The historical resource numbers for the properties have not been verified by a Qualified Person under NI 43-101).

The largest historical resource reported by the SGU is 60 million tonnes of near surface skarn ore at 25% to 30% Fe at the Junosuando occurrence on the Masugnsbyn property. The primary objective of the 2008 exploration program is to upgrade the Junosuando resource to the NI 43-101 compliant category. Following the confirmation of the NI 43-101 resource, G4G intends to immediately begin work on evaluating the suitability of Junosuando ore as feedstock for the Finesmelt™ process, as well as associated engineering studies.

"With the iron ore resource in Sweden and the strategic partnership with IMBS, G4G has the potential to confirm a sizeable iron ore resource and produce hot briquetted iron and pig iron within a relatively short period," continued Mr. Arendt. "This is a major objective and the Company is focusing its efforts on confirming the viability of producing iron ore and saleable iron units as quickly as possible."

The exploration program described in this news release is being conducted under the supervision of Mr. Christopher K. Hutchings, P. Geo., who is the qualified person as specified in National Instrument 43-101 for technical disclosure. Mr. Hutchings has reviewed and approved the technical information contained in this news release.

Cautionary Statement

Work performed on the properties has been insufficient to classify historical estimates as current resources. Historical resource tonnage and grades for Masugnbyn, Vittangi and Vathanvaara iron occurrences have not been verified by a Qualified Person under NI 43-101 requirements. The Company, therefore, is not treating historical resource estimates as current estimates and investors are cautioned not to rely upon historical estimations.

About G4G Resources

G4G Resources is a Canadian-based mineral exploration and development company focused on iron ore and iron production projects. On March 31, 2008, the Company announced the signing of an agreement with TCL Sweden Ltd., a wholly owned subsidiary of Teck Cominco Limited, for G4G to option eight mineral properties in the Norrbotten iron ore mining district of Sweden. G4G has also entered into an agreement with IMBS to establish joint venture companies which will produce high quality iron units from iron ore fines utilizing Finesmelt™ technology. Additionally, G4G is evaluating a number of other strategic growth opportunities to create and enhance shareholder value.

Forward-Looking Statement

This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties, as it relates to G4G Resources Ltd., please refer to the Company's 2006 Annual Report filed with SEDAR on April 23, 2008.

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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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