Mr. Larry W. Reaugh, President and Chief Executive Officer of American Manganese Inc. (TSX.V: AMY; Pink Sheets: AMYZF; Frankfurt: 2AM) (“American Manganese” or the “Company”), is pleased to report that a new NI 43-101 compliant Resource Estimate, which incorporates the results of the 2011 drilling program, shows a substantial increase in the amount of manganese contained in the Artillery Peak Project.  The 2011 drilling program included 84 reverse circulation drill holes totaling 10,607 meters (34,800 feet) on Manganese Mesa, Burro, and Shannon patented claims of the property.  The 2011 drilling program can best be categorized as fill-in drilling with a limited amount of step-out drilling.  This has resulted in an up-grading of a large proportion of the resource from Inferred to Indicated.  The step out drilling has resulted in a 41% increase of the overall tonnage and a 19% increase in the contained pounds of Mn.

N. Tribe & Associates Ltd. prepared the up-to-date NI 43-101 compliant Resource Estimate and the results are summarized below:

  0.90% Mn Cut-off Grade
INDICATED RESOURCE      
       
ZONE TONNEST GRADE%Mn Mn POUNDSIN BILLIONS
      (109)
LAKE/MACGREGOR 75,532,878 2.66 4.432
MAGGIE 113,663,426 2.90 7.284
LOVE’S,HURLEY,PLANCHE 11,971,949 5.76 1.522
SOUTH CHAPIN,  BURRO,PRICE,PRICELESS 23,788,479 2.95 1.546
SHANNON 1,507,022 3.96 0.132
       
TOTAL 226,463,754 2.99 14.916
       
INFERRED RESOURCE      
       
LAKE MACGREGOR 1,638,089 3.16 0.124
MAGGIE 40,443,207 2.71 2.416
LOVE’S,HURLEY,PLANCHE 4,110,834 4.00 0.363
SOUTH CHAPIN,BURRO,PRICE,PRICELESS 5,930,764 2.87 0.375
SHANNON 4,298,133 2.74 0.260
       
TOTAL 56,421,027 2.84 3.538

Samples were prepared by ALS Chemex in Sparks Nevada and the assaying was performed by ALS Chemex in North Vancouver, B.C.

The new NI 43-101 Resource Estimate will be filed with the regulators on SEDAR within 45 days of this news release.

The previous NI 43-101 compliant resource estimate at a 0.9% cut-off grade is summarized below:

  TONNES
T
GRADE
%Mn
Mn POUNDS
IN BILLIONS (109)
Indicated 92,823,925 3.27 6.686
Inferred 107,211,073 3.76 8.881

Mr. Reaugh states:  “I am extremely pleased with the results.  Not only has the amount of contained Mn metal increased by 19%, but also the amount of the metal resource in the Indicated category has increased by 123% from the previous estimate.  These results support our belief in the character and quality of the Artillery Peak Deposit, and there is a lot more ground to explore to expand the resource further.”

Mr. Reaugh also states that:  “the Chinese Government has been cracking down on smuggling of EMM through Vietnam thereby creating shortages and price increases in the European market.”

About Manganese

China controls electrolytic manganese production (EMM) supplying and producing 98.44% of the world’s needs (3.0 billion pounds per year).

There is no substitute for manganese in steel (total manganese market greater than 31 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%).

Electrolytic manganese dioxide (EMD) for the battery industry is expected to be the fastest growing segment of the manganese market.

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 $1.54/lb.  Manganese resources are declining in China especially carbonate ores for production of EMM, forcing Chinese companies to seek production offshore.

China is currently shutting down production of EMM in several provinces for environmental reasons.

China production of EMM predicted to fall 500 – 700,000 T’s out of 1.4 million T’s in next 3 – 5 years.

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.  The Company is well financed to execute its contemplated work programs.

This release has been reviewed by Norman L. Tribe, P. Eng., 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.