Mindoro Resources Ltd.
TSX VENTURE : MIO
FRANKFURT : WKN 906167

Mindoro Resources Ltd.

April 10, 2015 14:29 ET

Mindoro JV Completes Three Nickel Laterite DSO Shipments in March for US$1.93 Million

EDMONTON, ALBERTA--(Marketwired - April 10, 2015) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(FRANKFURT:WKN 906167) today announced that Agata Mining Ventures Inc. ("AMVI"), a joint venture company in which Mindoro holds a 40% interest, completed three shipments of high-iron/low nickel direct shipping ore ("DSO") during March 2015, for expected gross proceeds of US$1.93 million, from the Agata nickel laterite project located in northern Mindanao, the Philippines.

AMVI expects to complete four DSO shipments in April, subject to weather conditions, consisting of two shipments of high iron/low nickel limonite and two shipments of higher grade nickel saprolite. The anticipated increase in shipments reflects the completion of production ramp up activities that included causeway expansion and stockpile area development work.

"We look forward to the anticipated increase in shipment capacity in April and to potentially realizing higher selling prices from the saprolite DSO, which has higher nickel content than the limonite ore," stated Penny Gould, CEO of Mindoro. "AMVI's plans to ramp up operations to ship over 2.5 million wet metric tonnes of nickel laterite in 2015 would make the Agata project one of the largest DSO operations in the Philippines and potentially add significant value to Mindoro's 40% interest in the project."

March Shipment Summary

The shipments of limonite ore completed in March 2015 represent the eighth through tenth shipments completed by AMVI since operations commenced in October 2014. Shipment details and expectations of gross revenues to be received (subject to final assays and price adjustments) are as follows:

  • Eighth shipment totalling 54,231 wet metric tonnes (wmt) of ore containing 0.92% nickel and 48.10% iron was completed on March 13, 2015, for expected gross revenue of US$678,000.
  • Ninth shipment totalling 48,961 wmt of ore containing 0.90% nickel and 48.01% iron was completed on March 20, 2015, for expected gross revenue of US$612,000.
  • Tenth shipment totalling 51,250 wmt of ore containing 0.90% nickel and 48.60% iron was completed on March 27, 2015, for expected gross revenue of US$641.

AMVI has now completed a total of 10 shipments containing 528,757 wmt of limonite DSO for total gross proceeds of US$7.04 million.

About the Agata DSO Project

The Agata DSO project is held by AMVI, a joint venture company owned 40% by Mindoro and 60% by TVI Resource Development (Phils.), Inc., who is operator of the project.

The Agata DSO Project is located in Agusan del Norte province, within the Surigao mining region on the island of Mindanao, Philippines. The Surigao region is a major lateritic nickel producing region providing ore to processing plants in Australia, China, Korea and Japan. The Agata DSO Project is well located and is expected to benefit from its deep protected seaport, the opportunity for year-round shipping and its proximity to main markets in Asia.

An initial offtake agreement was signed by AMVI in June 2014 with Tewoo Hoperay (Singapore) Pte. Ltd. ("Tewoo") for the sale of one million WMT of high-iron/low nickel limonite DSO, and a second agreement was signed in August 2014 to sell 500,000 WMT. Advance payments of US$3 million have been received by AMVI against both agreements to fund initial operating costs. These advance payments are being offset on a per WMT basis over time. A third offtake agreement was signed by AMVI with Tewoo on December 15, 2014, to make two 55,000 WMT shipments of saprolite DSO in 2015.

AMVI plans to continue to mine and make shipments of both low and high grade limonite and saprolite DSO in order to ensure that a blended higher selling price is obtained.

An NI 43-101 compliant mineral resource estimate released on April 10, 2013 shows the Agata DSO project to have reported Proven and Probable Reserves of 9.7 million wet metric tonnes with a grade of 48% Fe with 0.9% Ni. The report is available for viewing on http://www.sedar.com and www.mindoro.com.

ABOUT MINDORO

Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and Frankfurt Stock Exchange (WKN 906167). Mindoro has a 40% interest in the Agata Mining Joint Venture and a 22% interest, plus an option to acquire an additional 25%, in the Agata Processing Joint Venture. Mindoro also holds 75% interest in the Pan de Azucar Sulphur-Copper-Gold Project, Iloilo. TVI Resource Development (Phils.), Inc. ("TVIRD") has the option to earn up to a 60% interest in the Agata Processing and Pan de Azucar projects by meeting the earn-in requirements outlined in the June 24, 2013, press release, which include producing a definitive feasibility study for a nickel processing facility. Mindoro also holds 75% interest and an option to acquire an additional 25% in the Tapian San Francisco Copper-Gold Project, Mindanao.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe", "scheduled", "to be", "will be" and similar expressions. Forward-looking statements in this News Release are based upon the opinions and expectations of management of the Company as at the effective date of such statements. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties (known and unknown) that could cause actual outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include, but are not limited to, such things as inherent risks associated with the exploration and development of mining properties, ultimate recoverability of mineral reserves, timing, results and costs of exploration and development activities, availability of financial resources or third-party financing, new laws (domestic or foreign), changes in administrative practices, changes in exploration plans or budgets, and availability of equipment and personnel.

Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this News Release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes. Forward-looking information respecting cash flows anticipated from future production of high-iron/low nickel DSO at the Agata Mining Project, is based upon high-iron/low nickel DSO prices in effect as at the date of this News Release, management's forecasts of trends in prices of high-iron/low nickel DSO, current mining rates of high-iron/low nickel DSO from the Agata Mining Project, estimates of the size of the high-iron/low nickel DSO reserves at Agata Mining Project, the current development plan for Agata Mining Project, AMVI's current budget and overall strategy for Agata Mining Project, which plans, budget and strategy are all subject to change. Forward-looking information respecting the anticipated timing of future shipments of high-iron/low nickel DSO from the Agata Mining Project, is based upon current mining rates of high-iron/low nickel DSO from the Agata Mining Project, the terms of the third party offtake agreement for the purchase of high-iron/low nickel DSO produced at the Agata Mining Project, estimates of the size of the high-iron/low nickel DSO reserves at the Agata Mining Project, the current development plan for the Agata Mining Project, AMVI's current budget and overall strategy for the Agata Mining Project, which plans, budget and strategy are all subject to change. The forward-looking statements of the Company contained in this News Release are expressly qualified, in their entirety, by this cautionary statement. Various risks to which the Company is exposed in the conduct of its business (including mining activities) are described in detail in the Company's Annual Information Form for the year ended December 31, 2013, which was filed on SEDAR on March 31, 2014 and is available under the Company's profile at www.sedar.com. Subject to applicable securities laws, the Company does not undertake any obligation to publicly revise the forward-looking statements included in this News Release to reflect subsequent events or circumstances.

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