Rodinia Minerals Inc.

Rodinia Minerals Inc.

March 02, 2009 09:00 ET

Retransmission: Rodinia Minerals Inc.: Company Signs Agreement to Acquire 100% Interest in Nevada Property Adjacent to the Only Lithium Producer in the U.S.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2009) - Rodinia Minerals Inc. ("Rodinia") (TSX VENTURE:RM) is pleased to announce that it and its Wyoming subsidiary, Donnybrook Platinum Resources, Inc. ("Donnybrook"), have entered into a letter agreement (the "Agreement") with GeoXplor Corp. ("GeoXplor") in respect of 250 unpatented mining claims located in the Clayton Valley, Esmeralda County, Nevada (the "Property").

Clayton Valley is home to the only lithium producer in the United States. This plant extracts lithium from brines pumped from aquifiers below the valley and has been in production since 1967. The plant is designed to produce 1.2 million kg of lithium per year and to date has produced an estimated 50 million kg of lithium. Rodinia's property is adjacent to this production facility.

In 1975, I.A. Kunasz of the American Institute of Mining, estimated the mineral endowment of Clayton Valley to be 750 million kg of lithium. A more recent study by Price, Lechler, Lear and Giles in 2000, suggests that significantly more lithium was released into the Clayton Valley catchment by the weathering of high lithium bearing rocks. They suggest that as groundwater enters the basin, it appears to be dissolving lithium minerals accumulated in valley sediment and is partially recharging the lithium content of the brine, while mining operations have been ongoing.

In addition to the claims covered under the Option, Rodinia through its U.S. subsidiary has staked an additional 284 claims (45,440 acres) in Clayton Valley. These mining claims will form part of the Property under an area of mutual interest clause in the Agreement. When combined with the claims under option, Rodinia now has a total of 50,440 acres under its control, accounting for approximately 90% of the valley. Rodinia has planned an aggressive exploration program to target additional layers of lithium bearing brines which may exist throughout the property.

Don Morrison, president of Rodinia, commented that: "Several factors underscore the importance and relevance of our decision to undertake the challenge of Clayton Valley. Firstly, we believe that the aforementioned production and mineral endowment numbers illustrate an underexploited potential resource. Secondly, the demand for lithium is projected to increase significantly from the production of lithium-ion batteries; thirdly, the U.S. Government, through its Economic Stimulus Package, has committed to allocating $1 billion to the development of a lithium-ion battery to be manufactured in the U.S. This in turn, we believe, will enhance the importance of domestic sources of the raw material and, finally, extracting lithium from brines has proven to be the most cost efficient method of mining and the extraction process at Clayton Valley is further simplified due to the low level of magnesium. Rodinia intends on maximizing its exploration efforts in order to take full advantage of this unique opportunity."

The Agreement, which is subject to regulatory approval, gives Rodinia and Donnybrook the option (the "Option") to acquire a 100% interest in the Property, subject to a 3% royalty in respect of Lithium Carbonate production and all other ores or minerals mined or extracted from the Property (the "Royalty"). The Option is exercisable by paying GeoXplor an aggregate US$322,000 over four years (the "Cash Payments"); issuing to GeoXplor an aggregate 2,500,000 shares of Rodinia, as to 500,000 shares on regulatory approval and 500,000 shares each year thereafter for four years (the "Share Issuances"), and incurring expenditures on exploration of the Property of not less than an aggregate US$2,000,000 over 4 years (the "Expenditures"). Rodinia may, at any time, accelerate any of the Cash Payments, Share Issuances or Expenditures and can satisfy the Expenditures requirement by delivering a pre-feasibility study. The Royalty can be bought down at any time upon payment of US$1 million for each 1% of the Royalty. The Agreement also provides that if, at any time, (i) a positive feasibility study in respect of the Property is delivered, or (ii) Rodinia and Donnybrook dispose of their interest in the Property in any way, GeoXplor will be paid US$2,000,000 in cash, or, at the election of GeoXplor, in that number of shares of Rodinia as have an aggregate value of US$2,000,000 determined on the basis of the closing market price per share of Rodinia's shares on the day preceding GeoXplor's election.

Mr. John Harrop is the Company's qualified person on the project as required under NI 43-101 and has reviewed the technical information contained in this press release.

Rodinia has, until now, focused on acquiring uranium properties situated in the U.S. Its flagship property is its Workman Creek project in Arizona which has a 43-101 compliant inferred resource of 5.6 million pounds of U308. It has a number of other uranium projects, located on Arizona and Utah, which have historical uranium reserves but which are not 43-101 compliant.



Donald Morrison, President

Issued and O/S: 23,492,217 shares

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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