Lysander Minerals Corporation
TSX VENTURE : LYM

Lysander Minerals Corporation

October 13, 2010 14:58 ET

Lysander Minerals Ramps Up Construction at Ukraine Coal Mine Following Completion of $11.5 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2010) - Lysander Minerals Corporation (TSX VENTURE:LYM) (the "Company") is pleased to announce the ramp-up of construction activities at its Verticalnaya North project. The project represents the first phase of redevelopment of the Verticalnaya anthracite mine in the Donbass coal basin of Southeastern Ukraine.

The site has been cleared, a waste tip established and excavation preparatory to the installation of portals for two inclined drifts has been completed. It is expected that the drifts will be completed in mid-2011 and that the first longwall will commence operation early in 2012.

The Executive Chairman of the Company, Mr. John Byrne, together with Mr. John Conlon, also a director of the Company, has been involved in the development of eight coal mines in recent years. Until recently, Mr. Byrne was Executive Chairman of Western Coal Corporation. Under his leadership that company quickly evolved from an early stage development company to a major producer with over $1 billion in market capitalization.

To facilitate the advancement of the project, the Company announced on October 8, 2010 that it has closed a private placement offering of units for gross proceeds of approximately $11,500,000. Additional funds of approximately $17,250,000 may be raised upon the exercise of the warrants issued under the offering. At that time, Mr. Byrne stated, "Lysander now has in place a structure for the financing of the re-opening of the Verticalnaya mine. We are confident that the warrants will be exercised in a timely manner so that the Company will fully equity fund the Verticalnaya North project in line with the NI 43-101 technical report for that project."

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.

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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