SOURCE: MMX Mineragco e Metalicos S.A.

March 03, 2008 18:13 ET

MMX Confirms Investment Plan for AVX With the Conclusion of the Acquisition of Minerminas

RIO DE JANEIRO, BRAZIL--(Marketwire - March 3, 2008) - MMX Mineração e Metálicos S.A. ("MMX" or the "Company") (BOVESPA: MMXM3) (TSX: XMM), pursuant to article 157 of Law 6404/76, and CVM Instruction No. 358/02, hereby makes the following announcement:

Further to the Public Announcement made on January 15, 2008 ("Original Public Announcement"), we hereby inform that AVX Mineração e Participações Ltda. ("AVX"), a subsidiary of the Company, has concluded the acquisition of Minerminas - Mineradora Minas Gerais Ltda. ("Minerminas").

For the purchase of 100% of Minerminas shares, AVX will pay a total of US$115,625,000.00, payable in 7 semi-annual consecutive installments, which represents a saving of almost US$10 million from the amount announced in the Original Public Announcement. The first installment of US$16,517,857.00 has already been paid and the six remaining installments of equal amount will be paid in the months of July and January of each year, with the last installment due in January 2011.

Through AVX, the Company is merging the operations of AVG and Minerminas in order to obtain synergies and economies of scale. The Company estimates that the integrated operations of AVX should produce 6.1 million tonnes of iron ore in 2008 and 6.6 million tonnes of iron ore in 2009. In this regard, the Company has approved investments of nearly US$40.1 million to improve operations over these two years, which alone will enable AVX to reach production capacity of 8 million tonnes in 2010.

Meanwhile, MMX plans to increase investments for the second stage of expansion of the operating capacity of AVX and, for this purpose, is conducting engineering studies in order to reach production capacity of 10 million tonnes in 2010.

For additional information, please contact ri@mmx.com.br.

Rio de Janeiro, March 3, 2008.

Luiz Rodolfo Landim Machado
Executive President and Investor Relations Officer
MMX Mineração e Metálicos S.A.

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 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.

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