Mano River Severstal JV announces 1 billion tonne iron ore at Putu in Liberia

Tuesday, 04 Aug 2009

Mano River Resources Inc announced an initial Independent Mineral Resource estimate of 1.08 billion tonnes of iron ore at the Company's 38.5% owned Putu Range iron ore project in Liberia.

Highlights

1. Independent Mineral Resource of 1.08 billion tonnes of iron ore at 37.6% total iron (Fe) at Putu in Liberia

2. Mineral Resource covers only a 2.6 kilometres section of 12 kilometer ridge

3. Potential for the Putu resource to grow as exploration program advances

4. Best drill results to date of 91 meter at 61.3% Fe oxidised BIF haematite and 232 meter at 40.8% Fe magnetite

5. 61.5% project partner Severstal Resources investing USD 30 million and working with the company towards a pre feasibility study during 2010

Mr Luis da Silva president & CEO of Mano said "We are delighted to announce this initial 1 billion tonne Mineral Resource estimate, especially as the resource covers less than one quarter of the 12 kilometers strike length of the Putu iron ore project in Liberia. Although early in the exploration program this is encouraging in order to reach the sort of scale that will enable such a large infrastructure project to become economically viable. The discussions with the Government of Liberia for the 25 year mining licence are progressing."

The Putu Iron Ore project is located in the centre of a 425 square kilometers exploration licence in Grand Gedeh County of eastern Liberia, approximately 100 kilometer north east from a potential deep water port of Greenville and 200 kilometer south east of the Mt. Nimba iron ore deposit.

The Putu project consists of two prominent ridges that strike northeast southwest, namely, Mt Jideh (with its extension Mt Montroh) and Mt. Ghi. Exploration to date has focussed on Mt Jideh, which comprises a high-grade outcropping magnetite/hematite mineralised zone that has undergone various stages of weathering. Mt Jideh has a strike length of approximately 12 kilometer based on mapping, surface sampling and airborne magnetic data.

The lower priority target called Mt Ghi runs parallel to Mt Jideh and though massive does not have a magnetic anomaly or significant outcrop. A program of 30 reconnaissance grab samples at Mt Ghi had returned an average grade of 39.3% Fe. The grade is believed to be associated with a deep tropical weathering profile. Mt Ghi has been excluded from any Mineral Resource estimation.

Severstal Resources is a 6.29% shareholder in Mano River Resources Inc through its wholly owned subsidiary, Lybica Holdings BV. The Company signed an agreement on May 22nd 2008 and subsequently completed the transaction with Severstal on the December 10th 2008. The deal provides for USD 15 million cash being injected into the joint venture company, now renamed Severstal Liberia Iron Ore Ltd, as well as an additional USD 15 million debt facility. This USD 30 million will provide for the specific advancement towards a definitive feasibility study.