Greenland Minerals and Energy Limited: Kvanefjeld Project-Major Technical Breakthrough: Atmospheric Leaching Extracts 90-95% of Uranium and Heavy Rare Earths

PERTH, WESTERN AUSTRALIA--(Marketwire - Feb. 23, 2012) -

See this news release in its entirety

Greenland Minerals and Energy Limited (ASX:GGG) ("GMEL" or "the Company") is pleased to provide an update on metallurgical developments that continue to enhance the Kvanefjeld multi-element project ( uranium rare earth elements, zinc). Kvanefjeld is recognised as one of the world's largest resources of rare earth elements and uranium, and is favourably located near existing infrastructure in southern Greenland.

In June 2011, GMEL announced that it had identified a means to effectively beneficiate the Kvanefjeld REE-U mineralisation utilising froth flotation. This method was then piloted successfully under continuous operation to produce bulk mineral concentrates (announced October, 2011). Hydro-metallurgical leach studies on the mineral concentrates have now been completed.

Key outcomes:

- Beneficiation through froth flotation has now been well-tested, and reveals industry-leading upgrade ratios from ore to mineral concentrate representing <15% of the original mass.

- Leach studies on the mineral concentrates demonstrate that the REE-uranium bearing minerals are highly amenable to conventional acid leach/solvent extraction.

- Mineral concentrates can be leached under atmospheric conditions to yield extractions of 90-95% for uranium and heavy REEs.

- Favourable leach solution chemistry allows for the generation of both heavy and light rare earth products.

- Major advances in beneficiation and atmospheric leaching allow for the development of an enhanced, efficient flowsheet utilising conventional methods with low technical risk.

- Developments eliminate the need for whole-of-ore pressure leaching and significantly reduce the scale of leach circuits, leading to a substantial reduction in capital expenditure.

- The Company is looking to finalise its preferred flowsheet and development scenario through Q1 2012, before finalising pre-feasibility work on the Kvanefjeld project.

For the complete ASX announcement, go to
http://www.ggg.gl/docs/ASX-announcements/Technical-Breakthrough-Atmospheric-Leaching.pdf.

Also see recent coverage in the Wall Street Journal "Asian, European Firms Circle Greenland Uranium and Rare Earth Element Mining Project"

ABOUT GREENLAND MINERALS AND ENERGY LTD.

Greenland Minerals and Energy Ltd (ASX:GGG) is an exploration and development company focused on developing high-quality mineral projects in Greenland. The Company's flagship project is the Kvanefjeld multi-element deposit (Rare Earth Elements, Uranium, Zinc), that is rapidly emerging as a premier specialty metals project. An interim report on pre-feasibility studies has demonstrated the potential for a large-scale multi-element mining operation.

Greenland Minerals and Energy Ltd will continue to advance the Kvanefjeld project in a manner that is in accord with both Greenlandic Government and local community expectations, and looks forward to being part of continued community discussions on the social and economic benefits associated with the development of the Kvanefjeld Project.

The information in this report that relates to exploration results, geological interpretations, appropriateness of cut-off grades, and reasonable expectation of potential viability of quoted rare earth element, uranium, and zinc resources is based on information compiled by Jeremy Whybrow. Mr Whybrow is a director of the Company and a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Whybrow has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Whybrow consents to the reporting of this information in the form and context in which it appears.

The geological model and geostatistical estimation for the Kvanefjeld deposit were prepared by Robin Simpson of SRK Consulting. Mr Simpson is a Member of the Australian Institute of Geoscientists (AIG), and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Simpson consents to the reporting of information relating to the geological model and geostatistical estimation in the form and context in which it appears.

ABN 85 118 463 004