Montero Mining and Exploration Ltd.

Montero Mining and Exploration Ltd.

August 07, 2012 09:00 ET

Montero Provides a Corporate Update on Operations at the Wigu Hill Rare Earth Project, Tanzania

TORONTO, ONTARIO--(Marketwire - Aug. 7, 2012) - Montero Mining and Exploration Ltd. (TSX VENTURE:MON) ("Montero") provides a corporate update on operations at the Wigu Hill Rare Earth Project in Tanzania including the commencement of its Environmental Impact Assessment ("EIA"), Environmental and Social Impact Assessment ("ESIA") and the grant of an extension to the Prospecting License for the project area. The EIA and ESIAs are crucial steps in obtaining the Environmental Permit, required for the Mining License application and any mining operation at Wigu Hill.

Dr. Tony Harwood, President and Chief Executive Officer of Montero commented, "The commencement of the EIA and ESIA are instrumental in developing a mining operation at Wigu Hill. The results and submission of the EIA and ESIA will be required for the application of a mining license and contribute to the feasibility study. We are pleased to announce that a 2 year extension to our prospecting license has been awarded by the Commissioner for Minerals in Tanzania, in order to apply for a Mining License. Montero remains focused on de-risking the Wigu Hill project and targeting early production of rare earths."

Montero has engaged MTL Consulting Company Ltd., a Tanzanian company with skilled professionals in mining and environmental areas with local and international experience, to carry out the necessary studies. The Scoping Study and Terms of Reference examining the bio-physical environment and socio-economic environment of the project have been approved by the National Environment Management Council (NEMC) in Tanzania and the EIA and ESIA at Wigu Hill are underway.

Baseline studies that have previously been completed during the exploration period include: Fauna/Flora, Geophysical/Hydrology-hydrogeology and a Health Impact Assessment. The results of these studies have been included in the scope of work for the EIA and ESIA. Submission of the EIA and ESIA to NEMC is targeted for the end of August 2012, followed by the Environmental Impact Assessment Certificate expected to be received in October 2012.

The application for the extension of a prospecting license for the Wigu Hill project area for an additional two years has been approved by the Commissioner for Minerals in Tanzania. The extension of the Prospecting License is effective from 1st July 2012 to 30th June 2014 and will allow for the completion of the EIA, further exploration and feasibility studies.

Qualified Person's Statement

The technical information contained in this press release has been reviewed by Mr. Mike Evans, M.Sc. Pr.Sci.Nat. who is a qualified person for the purpose of National Instrument 43-101 and a consulting geologist to Montero.

About Montero Mining & Exploration

Montero Mining and Exploration Ltd. is a mineral exploration and development company engaged in its flagship Rare Earth Elements (REE) Project Wigu Hill in Tanzania and has phosphate assets in South Africa and uranium assets in Tanzania and Quebec, Canada. The flagship Wigu Hill REE Project is a high-grade, undeveloped Light Rare Earth Element deposit, where the current focus is on updating the initial NI 43-101 Mineral Resource Estimate and advancing the hydro-metallurgical testwork with Mintek. Montero has a fast-track strategy to advance a portion of the Wigu Hill deposit to the mining and production stage in the short-term while further defining a larger deposit. With China's control over export quotas, it is becoming imperative that the rest of the world develops new rare earth resources to meet the increasing demand from "green" technology and high-tech applications.

Montero's growth strategy is to develop and de-risk the Wigu Hill Rare Earth Element project and to bring this to account through eventual rare earth production and cash flow, while operating in an environmentally and socially responsible manner. Montero trades on the TSX Venture Exchange under the symbol MON.

Dr. Tony Harwood, President and CEO

CAUTIONARY STATEMENT: This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

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.

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