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 Tetra Tech has delivered the completed NI 43-101 compliant Technical Report to the Company on June 29, 2012, and it is now filed and available on SEDAR.
“This represents the culmination of 18 months of intensive work, and I am pleased with the results,” says Mr. Reaugh. He goes on to say, “We are very excited with the overall recommendation to proceed to the next level of work, engineering and pursuit of the required regulatory approval. I would like to thank all of the contributors to this effort, notably Tetra Tech, Kemetco Research Inc. and CPM Group.”
About Tetra Tech
Tetra Tech is a leading provider of consulting, engineering, program management, construction, and technical services. The Company supports government and commercial clients by providing innovative solutions to complex problems focused on water, environment, energy, infrastructure, and natural resources. The company has been servicing the mining industry for more than 40 years and has established a reputation for successfully executing NI 43-101 compliant feasibility studies that meet the scrutiny of the international financing community. With more than 13,000 employees worldwide, Tetra Tech’s capabilities span the entire project life cycle. In addition to offices in Canada, the company has more than 330 offices worldwide, including locations in Arizona and Nevada in close proximity to the Artillery Peak project.
About Kemetco Research Inc.
Kemetco Research is a privately owned contract Research and Development Company specializing in extractive metallurgy, chemical processing and specialty chemical analysis. Kemetco was formed after the acquisition of the Industrial Process Division of BC Research. BC Research had been in operation for over 60 years as an R&D contractor in British Columbia, Canada.
About CPM Group (www.cpmgroup.com)
CPM Group is the world’s premier commodities research and consulting company. The firm’s primary focus is on precious, industrial, and specialty metals, in addition to undertaking research and analysis across all commodities markets. In the ferroalloy industry CPM Group has developed a top-rated expertise in molybdenum, vanadium, manganese and chromium, as well as other minor metals. CPM Group provides a suite of research and consulting services related to the financial management of commodities exposure, including fundamental market research and analysis, consulting and advisory services, commodities management and asset management services, and corporate finance advisory. Founded in 1986, CPM Group is known for its research and analysis of the metals markets, its overall economic analysis of commodities markets, and its expertise in financial engineering, using derivatives to structure optimized positions for commercial hedgers and institutional and high net worth individual investors.
China controls electrolytic manganese production supplying and producing 98% of the world’s needs (3 billion pounds per year).
There is no substitute for manganese in steel (total manganese market greater than 33 billion pounds per year, fourth largest traded metal).
Manganese is a critical metal at risk for supply disruptions in the United States as there is no U.S. production. EMM’s greatest uses are the upgrading of specialty steel (74%), and the manufacture of aluminum alloys (12%), electronics (2%), and other applications (12%).
Electrolytic manganese dioxide (EMD) for the battery industry is expected to be the fastest-growing segment of the manganese market. Ford Motors predicts production of hybrid electric vehicles will account for 25% of its entire vehicle line-up by 2020, and Hyundai has committed a lifetime guarantee to their hybrid electric vehicles that use lithium ion batteries with manganese spinel.
China has a 20% export duty on EMM and the U.S. has a 14% import duty.
The current world price for electrolytic manganese metal is about $1.46 per pound, while the U.S. price is about $1.66 per pound.
About American Manganese Inc.
American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming a producer of electrolytic manganese metal from its Arizona Manganese Project.
On behalf of Management
AMERICAN MANGANESE INC.
Larry W. Reaugh
President and Chief Executive Officer