SOURCE: MMX Mineracao e Metalicos S.A.

MMX Mineracao e Metalicos S.A.

September 08, 2009 11:11 ET

MMX Announces the Execution of the Definitive Agreement for Sale of the Pig Iron Plant Located in Corumba

RIO DE JANEIRO, BRAZIL--(Marketwire - September 8, 2009) - Further to the Material Fact dated June 23, 2009, MMX Mineração e Metálicos S.A. ("MMX" or the "Company") (BOVESPA: MMXM3), pursuant to article 157 of Law 6404/76, and CVM Instruction No. 358/02, informs its shareholders and the market in general that the definitive agreement for sale of the pig iron plant, owned by MMX Metálicos Corumbá Ltda. and located in the Municipality of Corumbá, State of Mato Grosso do Sul, Brazil ("the Asset") to Vetorial Siderurgia Ltda. ("Vetorial") was executed.

The conclusion of the transaction is subject to the Parties to the agreement obtaining the approval by the relevant environmental agency to the unbinding of MMX Metálicos Corumbá Ltda.'s forest assets from the Sustainable Supply Plan related to the Asset involved in the sale and substitution of the planting schedule previously submitted by MMX Metálicos Corumbá Ltda. For a new planting schedule to be submitted by Vetorial.

Vetorial will pay R$ 100 million for the Asset, of which 84% will be paid up front, affecting MMX's cash-flow in the last quarter of 2009. Furthermore, MMX Corumbá Mineração Ltda., a subsidiary of MMX, entered into a long term iron ore supply agreement with Vetorial, with a term of 20 years, in an amount sufficient to guarantee production of up to 400 thousand tons per year of pig iron.

The pig iron plant owned by EBX Siderúrgica de Bolívia S.A. and located in the city of Puerto Suarez, Germán Busch Province, Bolivia, was also sold to Vetorial for R$ 26 million.

Thus, MMX will now focus its efforts in mining and confirms its purpose to continue strengthening its activities in the state of Mato Grosso do Sul.

Rio de Janeiro, September 08, 2009

Roger Downey
CEO and IR Officer
MMX Mineração e Metálicos S.A.

About Vetorial: Vetorial Siderurgia Ltda. and its affiliates constitute an economic group dedicated to pig iron production, with operations in forestry and mining. This group has pig iron plants in Mato Grosso do Sul with a total production capacity of 350 thousand tons per year, besides forestry and iron ore mining for its own consumption.

About MMX: MMX is a mining company which currently has two integrated systems in operation, MMX Corumbá and MMX Sudeste, representing a total installed capacity of 10.8 million tons per year of iron ore, which can be expanded to up to 40 million tons per year. MMX has a recognized differentiated status in Brazil in terms of the outstanding quality of its mineral assets and its ability to design integrated projects with ensured logistics. MMX has also mining rights in Chile through its subsidiary Minera MMX de Chile, with promising deposits of iron ore and logistics also ensured, through the port under development by the EBX group. In 2008 MMX sold to Anglo American group two integrated systems originally developed by the Company, Amapá and Minas-Rio, in a transaction evaluated at USD 5.5 billion.

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