May 02, 2006 08:50 ET


Canada -- (MARKET WIRE) -- May 2, 2006 --

               Roche Bay Project Gains Support from Corus

Roche Bay plc ("Roche Bay" or "the Company") and Corus Group plc ("Corus") have signed a memorandum of agreement regarding the development of part of Roche Bay's magnetite deposits in northern Canada.

Under the memorandum of agreement, Corus has an option to buy between 2 and 3.5 million tonnes annually of iron ore concentrate/pellets from Roche Bay on a 10 year contract starting in 2010. The option is contingent on Roche Bay's feasibility plan and ore quality meeting specified levels. In terms of the agreement, Corus also has an option to acquire an interest in the project pending the results of the pre-feasibility and feasibility studies. Roche Bay expects to deliver the pre-feasibility study by spring of 2007.

The initial project will focus on the development of an iron ore mine with an annual production of up to 8 million tonnes of concentrate, which Roche Bay expects will lay the groundwork for expansion into pellet sales with the construction of a pellet plant. This project will use the Eastern Ore bodies owned by Roche Bay which the Roche Bay directors believe will combine a long mine life with low cost operation due to its immediate proximity to the coast, access to a natural deep water harbour and quality of magnetite ore.

Benjamin Cox, Chief Executive of Roche Bay, said: "We are delighted to be moving towards the development of this project with Corus' support. The directors believe Roche Bay potentially represents an asset of great strategic value to the European steel industry."

Scott MacDonald, Executive Director, Corus said: "Corus is pleased to be able to support this project from its early phase. We are keen to see the development of significant new iron ore projects that can become a strategic part of our iron ore requirements."

For more information contact:

For Roche Bay plc                        Corus Group plc

Millbrook Partnership                    Annanya Sarin

Tim Grey/ Sarah Ryle                     +44 (0) 20 7717 4532

+44 (0) 20 7520 9455   

Notes to Editors

About Roche Bay plc

Roche Bay (OTC: RCHBF) is an emerging iron ore company with a large resource base broken down into two groups of ore bodies, the East which is the current focus and the Western ore bodies which will support an intergenerational life of mine. Its ultimate majority shareholder is Borealis Exploration (OTC: BOREF).

On 28 April 2006, Roche Bay plc closed a £1.5 million investment round at 300 pence per new ordinary share with RAB Capital, the London-based investment management firm. Roche Bay expects to float on the AIM Market in the second half of 2006.

As part of the current reorganisation of the Company, Dr Rodney T. Cox, Iris Cox and Wayne Marshall have resigned from Roche Bay's Board of Directors. Peter Vanderwicken replaces Dr Rodney T. Cox as the chairman of the Company.

Please see the company website at for more details.

About Corus

Corus Group Plc (LSE/AEX: CS)(NYSE: CGA) is one of the world's largest metal producers with annual turnover of over £10 billion and major operating facilities in the U.K., the Netherlands, Germany, France, Norway and Belgium. Corus' four divisions comprising Strip Products, Long Products, Distribution & Building Systems and Aluminium provide innovative solutions to the construction, automotive, rail, general engineering and packaging markets worldwide. Corus has 47,300 employees in over 40 countries and sales offices and service centres worldwide.

                      This information is provided by RNS
            The company news service from the London Stock Exchange