Lysander Minerals Corporation
TSX VENTURE : LYM

Lysander Minerals Corporation

October 20, 2010 12:13 ET

Lysander Minerals Corporation: Construction Moves Underground at Ukraine Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 20, 2010) - Lysander Minerals Corporation (TSX VENTURE:LYM)(the "Company") is pleased to report that rapid progress is being made at the Verticalnaya North (VNP) project. Concreting of the two portals is in process, following completion of the portal excavations. The conveyor drift portal will be 33 metres in length, having separate entrances, one for the conveyor belt and the other for men and materials. The Auxiliary drift portal will be 21 metres in length, with separate entrances for materials and ventilation. 

The Company will make every effort to accelerate production and will also examine other opportunities in Ukraine. It is the Company's aim to become a major Ukrainian coal mining company.

Further, pursuant to its stock option plan and subject to shareholder ratification at the next general meeting of shareholders of an amendment to the Plan to increase the number of shares awardable for option and approval of the amended Plan and grant by the TSX Venture Exchange, Lysander has granted 250,000 options to a consultant. These options will have an exercise price of $0.32 per share and will expire on October 19, 2015. The securities represented by this grant will be subject to a four-month hold period.

By Order of the Board,

Bryce M.A. Porter
President

About Lysander

Using high standards of safety and efficiency, it is planned to develop the Verticalnaya mine in stages and lead developments by western companies in the Donbass coal basin.

Verticalnaya North is described in the March 2010 NI 43-101 technical report available on Sedar (www.sedar.com) and the Company's website (www.lysanderminerals.com). It represents the first phase in the redevelopment of the Verticalnaya mine, for which a NI 43-101 technical report was prepared in September 2008 and is also available on Sedar and the Company's website. Key indicators include:

Net present value @12% US$ 352.1 million
Internal rate of return 35.2%
Average cash operating cost per saleable tonne US$ 31.19/tonne
Proven reserves 16,200,000 tonnes
Probable reserves  11,000,000 tonnes
Measured resources   57,300,000 tonnes
Indicated resources  18,900,000 tonnes
Total resources   76,200,000 tonnes
Resources are inclusive of reserves.

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