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May 27, 2008
Environmental Compliance Certificate Granted for Agata Nickel Project
EDMONTON, Alberta; May 27, 2008 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) is very pleased to announce that the Environmental Compliance Certificate (ECC) for the Agata nickel laterite project has been signed by Secretary Jose L. Atienza, Jr. of the Department of the Environment and Natural Resources, Philippines. The ECC is the major permitting hurdle required to clear the way for the Direct Shipping Ore (DSO) production planned for this year. Mindoro can now proceed to acquire/process several additional minor permits/requirements necessary to commence production. These are considerably less comprehensive and less onerous to acquire than the ECC.
On April 30, 2008, Mindoro announced an early National Instrument 43-101 compliant mineral resource estimate for its Agata Nickel Laterite Project, Philippines (see below About the Agata Nickel Laterite Project). This will constitute the starter resource for the DSO operation. Expansion of this resource is in progress.
A scoping evaluation for the Agata North nickel laterite project is in progress. Mindoro notes that there has been a recent softening in prices quoted for DSO nickel laterite ore. It is believed that this is a result of the shutdown of many nickel pig iron blast furnaces in China for environmental reasons; likely accelerated by the upcoming Olympic Games. It is not known whether these will be re-commissioned once the Olympics are over. Nevertheless, it is noted that the Chinese stainless steel industry, which continues to expand, will still require nickel feedstock, for which nickel pig iron has now formed an important source. It is uncertain where and how this demand will be met. It is possible that the shutdown will lead to an acceleration in the construction of processing plants offshore, which Mindoro believes offers considerable potential for the development of an integrated nickel laterite mining and processing industry in the Philippines (see about the Agata Nickel Laterite Project below).
Mindoro is continuing to receive expressions of interest to purchase material from the Agata Project and will continue to advance all development alternatives for the Agata nickel laterite in the best interests of its shareholders.
There has been insufficient exploration to define mineral resources other than those disclosed in this release; it is uncertain if further exploration will result in additional mineral resources or that these resources will be economic or sufficient to support a commercial mining operation. Until a feasibility study has been completed there is no certainty that the company's projections will be economically viable.
The ECC covers an area of 600 hectares within the Agata Mineral Production Sharing Agreement (MPSA), including both the Agata North and Agata South projects. Agata South is a joint venture with Delta Earthmoving of the Philippines, who have also been operating exploration of Agata South. Mindoro recently received from Delta the exploration results to date from Agata South, and is currently having an independent nickel laterite expert evaluate these.
ABOUT THE AGATA NICKEL LATERITE PROJECT
The nickel laterite prospect is situated on the Agata Project, Surigao Gold District, northern Mindanao, Philippines. The Surigao Gold District is not only a current and historical gold producing district but, with the recent discovery of a cluster of porphyry copper gold deposits, it also has high potential to become a major copper-gold camp. Mindoro has multiple gold and copper-gold targets in the Surigao District at varying stages of drill evaluation.
The Surigao Region is now emerging as a major nickel producing district, and there are at least eight nickel laterite deposits either in production or being developed; providing DSO to markets and processing plants in China, Japan, Korea and Australia. These include the SR Metals Mine, immediately adjacent to Mindoro's Agata nickel laterite project. A preliminary, starter resource has been released for Agata (see below). Agata has strong competitive advantages, with good grades, just two to three kilometers from tide water, with corresponding low haul distance and costs, and only two days shipping from China. Uniquely, DSO nickel laterite operations have a low-capital cost and offer a rapid route to production and cash-flow.
Agata North Mineral Resource Estimate
The Mineral Resource model was generated by Dallas Cox, BE (Min), an independent qualified person as defined by NI 43-101. A total of 134 drill holes, comprising 2,921 meters of diamond drill core and 2,874 assay samples, were used for the estimate. An Inverse Distance Squared grade estimation method was utilized within tightly constrained lithological and grade domains. Both dry metric tonnes (DMT) and wet metric tonnes (WMT) are quoted since the saleable unit for DSO production is actually WMT.
Summary of the Mineral Resource Estimate:
• Mineral resources which are not mineral reserves do not have demonstrated economic viability.
• The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
• It is uncertain if further exploration will result in upgrading the Inferred mineral resource to an Indicated or Measured mineral resource or the Indicated mineral resource to a Measured Resource category.
While much of the Surigao District nickel laterite production has been as DSO to processing plants in Japan, Australia and China, several attractive alternatives are emerging for local processing, which include; at the low technology end of the spectrum, constructing a blast or electric furnace for nickel pig iron production (low grade ferro-nickel product which is increasingly entrenching itself as a substitute for refined nickel in stainless steel production), heap leaching for which pilot testing on another Philippine laterite deposit has produced promising results, atmospheric (tank) leaching, and a new generation of High Pressure Acid Leach (HPAL) plants. HPAL technology is currently being used with great success by Sumitomo on its Philippine Coral Bay operation, and show considerable promise for the local processing of Surigao ores. In fact, Sumitomo recently announced plans to proceed with permitting to construct an HPAL plant in the Surigao District. This HPAL technology has a proven track record in the Philippines.
Construction of a local processing plant, rather than simply shipping out raw product, would greatly increase the returns to all stakeholders; including Mindoro, its Philippine partner, the local people, local government units, and to the Philippines itself.
As noted in a February 7, 2008 news release, there is abundant evidence of the beginning of a trend for local/on-site processing of Philippine laterite ores and the growth of a large high-value industry in the Philippines. Mindoro expects that the prolifically nickel laterite-mineralized Surigao District will be an important part of this evolution.
Programs are carried out under the supervision of Tony Climie, P.Geol., president of Mindoro, who is a qualified person as defined by National Instrument 43-101. Sample preparation and assaying were performed by McPhar Laboratory of Manila, an ISO 9001/2000 accredited laboratory. Ni, Co, Fe, MgO and Al2O3 assays are performed by AAS after an HCl-HNO3-HClO4 digest, and SiO2 by gravimetric method. Normal Quality Control and Quality Assurance procedures are being carried out, using a system of duplicate samples. MRL has also conducted assays verification by using standard samples and re-assaying of field, coarse and pulp duplicates.
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (WKN 906167). In addition to advancing the Agata nickel laterite project towards production, Mindoro has announced an initial 43-101 compliant gold-silver mineral resource estimate on its Kay Tanda gold-silver project, and is proceeding to advance this project. The company has also identified 22 porphyry copper-gold prospects in the Philippines and has an aggressive strategy of drilling multiple targets in 2008.
For further information, contact:
Executive Vice President
Toll Free: 1.877.413.8187
Ascenta Capital Partners Inc.
Toll Free: 1.866.684.4209 ext. 228
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This release may contain forward-looking statements including management's assessments of future plans and operations, and expectations of future production. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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