Opta Minerals Inc.

Opta Minerals Inc.

September 04, 2007 07:30 ET

Opta Minerals Inc. Expands Into Eastern Europe

WATERDOWN, ONTARIO--(Marketwire - Sept. 4, 2007) - Opta Minerals Inc. (Opta) (TSX:OPM) announced today that it has acquired 100% of the outstanding common shares of Newco a.s. ("Newco") of Kosice, Slovakia. For fiscal 2006 Newco recorded revenues of approximately US $7.4 million selling its proprietary desulphurization and refractory products. Each product is produced to the specific requirements of the customers that Newco services within the European steel industry.

The acquisition expands Opta's business capabilities into Europe and complements existing operations which supply a wide range of desulphurization products in both the United States and Canada from operations in Indiana and Ontario.

Newco operates its production facility in Kosice, Slovakia. This profitable company employs approximately 22 people and maintains a very high level of customer specific technical service. The addition of Newco further increases Opta's position in the industrial minerals business and further expands its current position as a key service provider to the steel industry.

David Kruse, President and CEO of Opta Minerals Inc. commented "This transaction is a significant step towards the global expansion of Opta Minerals. Newco sells desulfurization products and services to integrated steel mills in Europe in the same manner as our North American operations do in Waterdown Ontario and Walkerton Indiana. We are very familiar with the desulphurization operations and will continue to provide unparalleled customer service and quality products to existing and new customers within Europe as we position ourselves for growth in both the industrial minerals and abrasive markets in that region".

The purchase price, net of cash acquired, was a combination of US $9.1 million in cash and one million common shares of Opta Minerals Inc. The acquisition is expected to be immediately accretive to Opta Minerals earnings.

About Opta Minerals Inc.

Opta Minerals Inc. is a vertically integrated producer, manufacturer, distributor and recycler of silica-free loose abrasives, roofing shingle granules, industrial minerals, specialty sands and related products for use primarily in the foundry, steel, marine/bridge cleaning, roofing shingle and municipal water filtration industries. With its head office in Waterdown, Ontario, the Company also has production and distribution facilities in Ontario, Quebec, Louisiana, South Carolina, Virginia, Maryland, Ohio, Indiana, Michigan, New York and Kosice Slovakia and one of the broadest product lines in the industry.

Forward-Looking Statements

Certain statements included in this press release may constitute "forward-looking statements". These forward-looking statements include, but are not limited to references to business strategies, competitive strengths, goals, capital expenditure plans, business and operational growth plans and references to the future growth of the business. These forward looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its interpretation of current conditions, historical trends and expected future developments as well as other factors that the Company believes are appropriate in the circumstance. However, whether actual results and developments will agree with expectations and predications of the Company is subject to many risks and uncertainties including, but not limited to; general economic, business or market risk conditions; competitive actions by other companies; changes in laws or regulations or policies of local governments, provinces and states as well as the governments of United States and Canada, many of which are beyond the control of the Company. Consequently all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized.

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