New Millennium Capital Corp.
TSX VENTURE : NML

New Millennium Capital Corp.

September 14, 2010 09:10 ET

New Millennium Capital Corp. Announces a Positive DSO Investment Decision by Tata Steel

CALGARY, ALBERTA--(Marketwire - Sept. 14, 2010) -

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New Millennium Capital Corp. ("NML" or "the Corporation") (TSX VENTURE:NML) announced today that Tata Steel has made a positive investment decision by exercising its option to acquire an 80% interest in the Corporation's Schefferville Direct Shipping Ore ("DSO") Project.

As part of the Joint Venture ("JV") agreement, Tata Steel will reimburse NML for 80% of NML's cost to date on the DSO Project; arrange funding for up to CDN $300 million of capital costs for the Project to earn its 80% share of the JV and commit to take 100% of the DSO project's iron ore products of specified quality, at world market prices, for the life of the mining operation. It is expected that the JV will produce 4 million dry tonnes per year of iron ore products commencing in 2012.

Robert Martin, President and CEO of NML, stated "We are delighted that Tata Steel has made a positive investment decision to advance the DSO Project to production. This is the most important event for New Millennium and its shareholders in the history of the company. It will also result in a significant increase in the company's cash position, provide capital to build the requisite infrastructure and ensure a sales outlet for all of the mines' output. Now that we have set a course for DSO production, we can look forward to working with Tata Steel on the much larger Taconite Project."

Mr. H.M. Nerurkar, Managing Director of Tata Steel, said "We are pleased to take the investment decision to develop the DSO Project. The project's location, infrastructure and ore quality ensure reliable and consistent source of supply for Tata Steel. This agreement with New Millennium is a clear demonstration of our strategy and we continue to analyse opportunities to increase the percentage of raw material security. We are hopeful that along with our partner, we would be able to move forward on various aspects of the project including training activities, and commence construction with a view to commissioning the Project in 2012."

About New Millennium

New Millennium controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation is also advancing to near term production its DSO (Direct Shipping Ore) Project. Tata Steel, one of the top 10 steel producers of the world, owns 27.4% of New Millennium and is the Corporation's largest shareholder and strategic partner. Tata has exercised its exclusive option to participate in the DSO Project and has a commitment to take the resulting production, and has an exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project and the KeMag Project (see news release 08-17, October 1, 2008 and news release 09-11, June 30, 2009). The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of Proven and Probable reserves at a grade of 29.6% Fe plus 1.0 billion tonnes of Measured and Indicated resources at an average grade of 29.5% Fe and 1.2 billion tonnes of Inferred resources at an average grade of 29.3% Fe (see news release 06-13, July 5 2006 and 07-11, July 17, 2007); KeMag contains 2.1 billion tonnes of Proven and Probable reserves at an average grade of 31.3% Fe, 0.3 billion tonnes of Measured and Indicated resources at an average grade of 31.3 % Fe and 1.0 billion tonnes of Inferred resources at an average grade of 31.2% Fe (see news release 09-01, January 15, 2009).

The Corporation's DSO project contains 64.1 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.8%Fe, 8.1 million tonnes of Measured and Indicated Mineral Resources at an average grade of 58.8% Fe, 7.2 million tonnes of Inferred Resources at an average grade of 56.8% Fe and about 40.0 - 45.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03, February 11, 2009 and news release 09-05, March 4, 2009, news release 09-16, December 9, 2009 and news release 10-12 dated July 8, 2010). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources and the historical estimate should not be relied upon.

The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials for the world's iron and steel industries. For further information, please visit www.nmlresources.com, www.tatasteel.com and www.corusgroup.com.

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