Mr. Larry Reaugh, President and Chief Executive Officer of American Manganese Inc. (“American Manganese” or the “Company”), (TSX.V:  AMY; Pink Sheets:  AMYZF), is pleased to report the Company will be researching the possibility to produce value added products at their potential electrolytic manganese metal mining operation at Artillery Peak in Mohave County, Arizona.  Focus will be on the lithium manganese (LiMn204) powder utilized in the production of the currently commercialized lithium manganese battery.

Project Review

The 2010 drill program increased the NI-43-101 resources by 45% to:

 

0.90% Mn Cut-off Grade 1.30% Mn Cut-off Grade
 

TONNES
T

GRADE
%Mn

Mn POUNDS
IN BILLIONS (109)

TONNES
T

GRADE
%Mn

Mn POUNDS
IN BILLIONS (109)

Indicated

92,823,925

3.27%

6.686

80,753,705

3.55%

6.315

Inferred

107,211,073

3.76%

8.881

84,122,632

4.13%

7.660

The Company’s Plan of Operation this year is as follows:

  1. Complete a NI-43-101 compliant feasibility study by Wardrop Engineering;
  2. Complete a NI-43-101 compliant Pilot Plant Testing of the Artillery Peak ores using the process design by Kemetco Research Inc. (The president of Kemetco will be presenting a paper, “The Recovery of Manganese from Lower Grade Resources”, at the SME conference in Denver, Colorado on March 2, 2011);
  3. Commence a drill program of approximately 6,200 meters (20,000 ft) by the end of March this year;
  4. Commence base line environmental studies by April, 2011. 

The Company currently has about $5,000,000 in the treasury and with the completion of the $5,000,000 bought deal financing by Laurentian Bank Securities the Company will be well funded to advance the project over the next 18 months.

About Electrolytic Manganese

China controls electrolytic manganese production (EMM) supplying and producing 97.44% of the world’s needs (2.6 billion pounds per year).

There is no substitute for manganese in steel (total manganese market greater than 30 billion pounds per year, fourth largest traded metal).

Manganese is the most critical metal at risk to supply and restriction in the United States as there is no US production. EMM’s greatest uses are the upgrading of specialty steel (47%), and the manufacture of aluminum alloys (32%) and electronics (14%).

China has a 20% export duty on EMM and the US has a 14% import duty; (US Price $1.81/lb) the current world price for Electrolytic Manganese Metal is about $1.52/lb.  Manganese resources are declining in China especially carbonate ores for production of EMM, forcing Chinese companies to seek production offshore.

The overall manganese market grew at 8% per year to 30 billion pounds up to 2008.  EMM market grew at 26% per year from 2003 – 2008 to 2.6 billion pounds per year.

About American Manganese Inc:

American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming the lowest cost producer of electrolytic manganese from its Arizona Manganese Project.

This release has been reviewed by John W. Fisher, PEng, a qualified person pursuant to National Instrument 43-101.

On behalf of Management

AMERICAN MANGANESE INC.

Larry W. Reaugh
President and Chief Executive Officer


The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the Toronto Stock Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.