SOURCE: MMX Mineracao e Metalicos S.A.

July 01, 2008 19:27 ET

MMX Celebrates Agreement for the Acquisition of a Mining Right

RIO DE JANEIRO, BRAZIL--(Marketwire - July 1, 2008) - MMX Mineração e Metálicos S.A. ("MMX" or "Company") (BOVESPA: MMXM3) (TSX: XMM), in compliance with article 157 of Law 6,404/76, and CVM Instruction 358/02, hereby makes the following announcement:

The Company, through an indirect subsidiary of MMX Sudeste Ltda., AVG Mineração S/A ("AVG"), and LGA - Mineração e Siderurgia Ltda ("LGA") agreed to the terms and conditions of the legal procedures ("the Contract") for the acquisition of a mining right owned by LGA, located in a 755.65-hectares area in the Municipality of Bom Sucesso, Minas Gerais State ("Mining Right" or "Bom Sucesso Mine").

The Mining Right is located 200 km away from Belo Horizonte, 250 km from LLX Port Sudeste, and around 40 km from the railway operated by MRS.

For the acquisition of the Mining Right, the Company will pay LGA an amount equivalent to US$ 193,300,109.60, in four installments, with maturity on 01/05/2010. Complementary disbursements may be done depending on the results of the drilling campaign of a geological research program to be carried out by the Company in the Mining Right area, in an 18-months period. Therefore, in case the mineral resources volume, according to the conditions specified in the Contract, is greater than 241.6 million tons, AVG will pay LGA US$0.80 per additional measured ton.

Along with the drilling campaign, the Company will carry out engineering studies to determine the amount of investments required to develop the Bom Sucesso Mine. Operations are expected to commence in 2012 with an estimated production of up to 10 million annual tons of high-quality iron ore for the export market. MMX plans to transport the production by railway to LLX Port Sudeste, in Rio de Janeiro State.

After the closing of the above mentioned Contract, which shall occur by July 7, 2008, the MMX Sudeste System will be composed of the Serra Azul Unit -- composed of AVG and Minerminas mines -- and the Bom Sucesso Mine, and may reach an annual capacity of 25 to 30 million tons as of 2012.

For additional information, please contact

MMX Mineração e Metálicos S.A.

Nelson José Guitti Guimarães
Chief Financial and Investor Relations Officer

FORWARD-LOOKING STATEMENTS: This material fact contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities laws concerning the acquisition operation and the business plan, the operations and financial performance and condition of MMX, and estimated production and mine life of the acquired mineral project. Except for statements of historical fact relating to MMX, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate," "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are made taking into consideration a number of assumptions and, therefore are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Assumptions upon which such forward-looking statements are based on expectations yet to be confirmed by the research program to be conducted by the Company, mentioned herein, and are also subject to the eventual licenses and necessary approvals to develop said mining project. Assumptions upon which such forward-looking statements are based on factors and events that are not within the control of MMX and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, variations in ore grade or recovery rates, risks relating to international operations, fluctuating metal prices and currency exchange rates, changes in project parameters, the possibility of unanticipated costs and expenses, failure of plant, equipment or processes to operate as anticipated, the failure to obtain necessary licenses or permitting, the acquired mineral project not being integrated successfully or such integration proving more difficult, time consuming or costly than expected, and other risks of the mining industry. Although MMX has attempted to identify the important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. MMX undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.