MDN Inc.
TSX : MDN

MDN Inc.

April 14, 2009 10:24 ET

MDN Acquires an Advanced Development Project in Quebec

MDN reaches agreement with Les Mineraux Crevier Shareholders

MONTREAL, QUEBEC--(Marketwire - April 14, 2009) - MDN Inc. (TSX:MDN) is pleased to announce an investment transaction with the shareholders of Les Mineraux Crevier Inc. ("MCI") including its 50% shareholder IAMGOLD Corporation ("IAMGOLD" or "IMG"), to acquire a majority interest in MCI. The transaction is subject to the completion of all related documentation and regulatory body approvals for an expected closing no later than May 15, 2009. The transaction provides MDN with an option to acquire, over a three (3) year period, a majority equity interest in MCI in return for funding the development and feasibility study of a 43-101 compliant niobium and tantalum resource (the "Resource"), located in Quebec's Lac St-Jean Region, 80 km North of St-Felicien.

Highlights of the Investment:

- MDN will invest $750,000 for the acquisition of 25% of MCI shares. In addition, it will assist in funding up to $1,500,000 to redeem an existing MCI convertible debenture.

- This initial investment of $2,250,000 by MDN will secure its right to increase its ownership in MCI over the next three years, the projected time at which the construction and ultimately the commercial phases of the project are slated to begin. This is a relatively short timeframe to potential commercial production and cash flow generation for MDN.

- MDN will fund the development costs including a feasibility study, and other costs to advance the Resource to construction and commercial production. In exchange for its investment, MDN shall earn the right to acquire up to 75% of MCI ownership upon milestone achievements. MCI's President Serge Bureau, P.Eng, will be responsible for the management of the feasibility study and the development process leading towards commercialization of the Resource.

- Following MDN's initial investment, IAMGOLD will have a 37.5% ownership interest in MCI. Each of IAMGOLD and MDN will have two representatives on MCI's Board of Directors. IAMGOLD owns and operates a nearby niobium mine and processing plant, Niobec, which produces ferro niobium.

- The niobium oxide to be produced will complement the existing ferro niobium markets, which is a steel alloying element providing increased strength and good weld capability. Tantalum is the metal with the highest capacitance known, essential in most electronic devices. Niobium and tantalum are called to play an ever-expanding role in view of their unique properties and are considered strategic metals by governments, in particular the United States.

- The in situ Resource amounts to 47,895,000 kg of niobium oxide and 5,124,250 kg of tantalum oxide in the indicated category as well as 27,345,600 kg of niobium oxide and 3,443,520 kg of tantalum oxide in the inferred category (see table below). A conceptual mining scenario based on 25.75 million metric tonnes indicated resources with approximately one (1) million tonnes per year production indicates a potential for a mine life of 17 to 20 years, with the first 6 years as an open pit operation.



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43-101 Values M tonnes Ta2O5 g/t Nb2O5 g/t Ta2O5 Kg Nb2O5 Kg
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Indicated (i) 25.75 199 1,860 5,124,250 47,895,000
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Inferred (i) 16.88 204 1,620 3,443,520 27,345,600
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(i) Cut-off grade of 0.1% niobium is included


- There is a growing worldwide demand for both metals and only a small number of producers. The development of the Resource will secure clients with stable supply sources which will assist further end product development and overall demand of the market.

Paul-A. Girard, President and CEO of MDN commented: "We believe that this investment will create significant value as we develop the Resource from a green field project into the construction of a mine and milling operation of two metals considered very strategic for the future of industrial development globally. We look forward to developing further synergies with IAMGOLD and initiate MDN's strategy of acquiring mining assets that it can control and operate for the long term. While we see MCI as an attractive asset, we remain focused on exploring and developing new gold deposits."

Serge Bureau, President of MCI stated: "We're delighted by MDN's investment in MCI which will maximize the development potential of a highly valuable mining resource and allow the contribution of a partner having a proven track record of success in exploration and project development."

DUE DILIGENCE

As part of MDN's initial assessment of this investment opportunity, the Resource was confirmed as a 43-101 compliant resource as reported on April 6, 2009 by SGS Geostat Ltd., which was reviewed and found to be acceptable by Marc Boisvert, P.Eng., Vice President of Exploration for MDN.

The conceptual work plan was prepared by MCI's President Serge Bureau, P.Eng. Mr. Bureau was formerly with Barrick Gold Corporation, where he was a key member of the team responsible for the evaluation, planning and development of mines in South and Central America as well as Russia. The work plan and related documents were reviewed by Marc Boisvert, P. Eng., and also reviewed in detail by Met-Chem. The final Met-Chem report was issued March 11, 2009 and concurred with the SGS Geostat resource estimation and conclusions. The Met-Chem due diligence findings indicated the project's initial plan was reasonable, and recommended completion of a pre feasibility study.

MDN's investment over a three year period is to be made on a progressive basis, each further advance linked and supported by evidence of the commercial viability of a niobium and tantalum mining operation. Further investments will be directed at funding the feasibility study, further exploration expenses as required, an open pit and underground mine design and planning and all ensuing expenses leading to the construction of the mine.

NIOBIUM AND TANTALUM

MDN and MCI plan to produce niobium pentoxide (Nb2O5) and tantalum pentoxide (Ta2O5) to be sold in various markets, especially as enhancing elements in super alloys and other markets. Niobium is an additive in the production of specialty steel which is alloyed in to increase strength and improve corrosion resistance. A 2% alloy of niobium has the ability to triple the tensile strength of steel from 40,000 psi (pounds per square inch) to 120,000 psi. Niobium-alloyed steel is used in construction, oil and gas pipelines, nuclear plant pipelines, the automotive industry and aerospace.

Tantalum is the metal with the highest known specific capacitance, which is the ability to hold and instantaneously release electrical charge. As such, tantalum is essential to most electronic devices. Tantalum is a good conductor of heat and electricity, resists corrosion by acids and has a very high melting point (approximately 3,000 degrees C). As a metal powder, tantalum is used primarily in the production of electronic components, mainly tantalum capacitors, where its ability to form stable oxide films creates highly efficient, highly reliable and environmentally versatile components. Capacitors are used in desktop and laptop computers, mobile phones, digital cameras, pagers, PDA's, handheld games, automotive applications and a number of other areas in the electronics industry. Tantalum, which is biocompatible, is also used in implant materials in humans.

About MDN

MDN Inc. (TSX:MDN) is a mining exploration company with its head office in Montreal, Quebec, Canada. Its main assets and exploration activities are in Tanzania, through a 30% interest in the producing Tulawaka gold mine and majority interest in 35 mineral licenses surrounding Tulawaka. MDN recently reported 2008 net earnings of $22.1 million or $0.24 per share from its share of the gold producing Tulawaka mine in Tanzania and has a cash reserve of $24 million. For more information, please visit www.mdn-mines.com

About Les Mineraux Crevier Inc. (MCI) and the niobium and tantalum resource
MCI is a privately-held company whose major shareholder is IAMGOLD Corporation (50%). The management team and key shareholders include Messrs. Serge Bureau, Jacques Bonneau and Claude Dufresne. The mineralized zone was originally discovered by SOQUEM in 1975, which conducted several phases of exploration from 1975 to 1986. During this period, SOQUEM conducted 6 drilling campaigns totalling 72 holes. The property was subsequently transferred to Cambior during the privatization of SOQUEM's productive assets. The property remained more or less dormant until 2002 when Cambior conducted a drilling program of 33 holes totalling over 6,000 metres. In 2006, Cambior was bought by IAMGOLD which became the owner of the property. In April 2008, Les Mineraux Crevier Inc. bought 100% of the property from IAMGOLD.

All technical information in this press release was reviewed by Marc Boisvert, P. Eng.,Vice President Exploration, who is a Qualified Person as defined in National Instrument 43-101.

Forward-looking statements

Certain statements contained in this Press Release express management's estimates of MDN's future performance and constitute "forward- looking statements" on future events or on MDN's future results or performance. All statements, other than statements of historical fact, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These risk factors are discussed in greater detail in MDN's most recent Annual Information Form filed on SEDAR.

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