RELEASE 21 JANUARY 2010 SECOND TRIAL SHIPMENT OF ANT HILL MANGANESE ORE DEPARTS PORT HEDLAND Mesa is pleased to announce that the vessel carrying the second trial shipment of manganese ore from Ant Hill sailed from Port Hedland early this morning. The Opal Amber, which is carrying the 18,006 tonne cargo, is scheduled to arrive in northern China early in February. (Mesa has a 50% several but undivided interest in this cargo.) This second trial shipment, which is of medium manganese and relatively high iron content, is similar to what we would anticipate to be our medium grade product offering. It was keenly sought after by a wide range of customers, confirming our view that the market will welcome both our high and medium grade products. (The first trial shipment, which was sold into southern China, was of high manganese content and more closely analogous to what we would anticipate to be our high grade product offering.) The geographical spread of these two cargo destinations within China is indicative of the wide spread of potential buyers who wish to establish regular ore supply relationships with Mesa. The interest expressed in both trial shipments is in part due to their excellent handling characteristics (ie, the manganite ore being hard and lumpy); in part due to smelting performance (ie, the very low phosphorous content and the potential savings in electricity and coke that are again derived from the manganite ores chemical makeup); and in part due to the process innovations developed by many Chinese customers to efficiently smelt high iron manganese ores. The two trial shipments have effectively completed the export ore dimension of the trial mining exercise carried out at Ant Hill, with remaining ore stocks earmarked for beneficiation or secondary processing at a later date. The completion of the trial mining exercise represents another significant step forward in Mesas efforts to attain a sustainable income stream from the export of metallurgical grade manganese ores into the steel sector. Importantly, it also advances Mesas efforts to establish a second sustainable income stream from the domestic processing of low grade manganese ores mined in the Pilbara, into high grade manganese products consumed in other industry sectors, utilising the Companys patented hydrometallurgical technologies. Given that all regulatory hurdles in the way of opening a new mine have now been overcome, our attention can now be focused upon the commercial decisions that are before us, if we are to see the great potential of this mining venture fulfilled. In this regard, Mesa believes that it is possible to move the Ant Hill mine from its present mothballed state, to a fully operating mine site, in a relatively short period of time. Alan Scott Managing Director
MAS Price at posting:
5.2¢ Sentiment: Buy Disclosure: Held
