Oriel Resources plc

Oriel Resources plc

July 17, 2007 10:13 ET

Oriel Resources Generates First Revenue and Signs Chrome Ore Off Take Agreement

LONDON, UNITED KINGDOM--(Marketwire - July 17, 2007) - The Directors of Oriel Resources Plc (TSX:ORL)(AIM:ORI) ("Oriel" or "the Company"), the London-based chrome and nickel mining and processing company, are pleased to announce the initial sale of high carbon ferrochrome ("HC FeCr") product from the Tikhvin smelter plant, Russia ("Tikhvin") and the signing of a long term off take contract for the purchase of chrome ore product from the Voskhod chrome project, Kazakhstan.

Tikhvin's initial batch of saleable HC FeCr product has successfully been sold at approximately US$1.30 per pound, representing Oriel's first revenue from current working projects.

Oriel recently completed a long term off take contract with Glencore International AG ("Glencore") to market a significant proportion of Voskhod's annual 900,000t of beneficiated chromite ore product, commencing Q3 2008.

Dr Sergey V Kurzin, Executive Chairman of Oriel commented:

"In addition, we are pleased to report that a number of major international metal traders have confirmed their interest in our high carbon ferrochrome product. These initial ferrochrome sales from Tikhvin are a significant milestone in the Company's development as a vertically integrated supplier to the stainless steel industry. We are also pleased to have Glencore join us as an off taker of our Voskhod chrome ore."

Notes to Editors:

Oriel Resources was formed in July 2003 with Dr Sergey V. Kurzin as Executive Chairman and CEO and is a London-based chrome and nickel mining and processing company with its Ordinary Shares and Warrants admitted to trading on the Alternative Investment Market (AIM) and its Ordinary Shares listed on the TSX Stock Exchange.

Its primary focus is on the identification, acquisition, exploration and development of advanced chrome, nickel, and other alloying opportunities in the countries of the FSU, including The Republic of Kazakhstan and The Russian Federation. The Oriel group currently has three projects, namely the Tikhvin smelter project, Russia and the Voskhod chrome and Shevchenko nickel projects, both situated in north western Kazakhstan. Following the results of recent feasibility studies for the Russia and Kazakh-based projects and given the current high demand for chrome and nickel products, the directors are fast-tracking the Voskhod chrome and Tikhvin smelter projects into production while further developing the Shevchenko nickel project.

Contact Information

  • Oriel Resources plc
    Dr Sergey V Kurzin
    Executive Chairman
    +44 (0) 20 7514 0590
    Oriel Resources plc
    Nick Clarke
    Managing Director
    +44 (0) 20 7514 0590
    Oriel Resources plc
    Gavin Dallas
    Marketing and PR
    +44 (0) 20 7514 0590
    Email: info@orielresources.com
    Website: www.orielresources.com
    Bankside Consultants
    Michael Padley / Michael Spriggs
    +44 (0) 20 7367 8888
    Vanguard Shareholder Solutions
    Keith Schaefer
    (604) 608-0824
    Canaccord Adams Limited
    Robin Birchall / Ryan Gaffney
    +44 (0) 20 7050 6500