Sharenet Sites 
Sharenet Sites
PET - Petmin Limited - Petmin increases investment into Canadian PIG Iron Project PETMIN LIMITED Incorporated in the Republic of South Africa Registration Number 1972/001062/06 Share Code JSE: PET & ISIN: ZAE000076014 Share Code AIM: PTMN ("Petmin" or "the Company") PETMIN INCREASES INVESTMENT INTO CANADIAN PIG IRON PROJECT Option to acquire up to 49.9% of low-cost pig iron project close to major markets Petmin has announced details of a US$25 million investment in its Canadian iron sands and pig iron joint venture project. A deal signed in September 2010 gave Petmin the option to invest US$25 million for 40% of North Atlantic Iron Corporation (NAIC), which owns the project in Canada`s Newfoundland and Labrador province. NAIC is owned by Petmin and a privately-owned Canadian junior explorer. Petmin has to date invested $3.5 million for 10.714% of NAIC. Petmin has joint management control of NAIC and the project. A further 9.9% of NAIC may be acquired at Petmin`s discretion, at a price to be negotiated. The project is supported by excellent infrastructure, being close to hydro- electric power and a deep water port. The directors of Petmin believe that the project potentially has a lifespan of more than 50 years and aims to produce 500,000 tonnes of pig iron per year during its first phase. "This investment in Canada increases Petmin`s exposure to the steel value chain and commodities which underpin urbanisation and infrastructure development," said Bradley Doig, the Petmin director responsible for international expansion. "We aim to be a low-cost producer of quality pig iron and the North Atlantic Iron Corporation meets all of our project investment criteria. It is a long-life asset in a mining-friendly jurisdiction, with access to clean low-cost hydro- electric power and a port which is less than seven days sailing time from most of the US steel industry." The NAIC project is in north-eastern Canada`s Newfoundland and Labrador province, which was ranked 7th globally in the Fraser Institute`s 2010 survey of mining friendly jurisdictions. The NAIC claims span approximately 450 square kilometres. Exploration to date has been positive, with results expected by Q1 2012. The first round of drilling started in March 2011 and will continue through to October 2011. During this exploration phase NAIC is targeting a minimum of 250 million tonnes of iron sands, on 14 square kilometres, with a heavy mineral content of about 10%. This represents drilling on less than 3% of current claims. The NAIC project is less than 5km from a port which is well located to serve the North American (4.5 days shipping to Erie, Pennsylvania) and European markets (less than five days to Rotterdam). It is close to the existing Upper Churchill hydro-electric power station (6000MW) which gives the project potential access to clean low-cost power. The iron sands will require no drilling, blasting or crushing. They will be separated via gravity spirals and magnetic separators into a concentrate suitable for the production of high-quality pig iron. NAIC has an agreement with a technology partner to produce pig iron from iron sands using a patented electricity-based technology. The technology has already been demonstrated at a pilot scale to produce pig iron from NAIC`s iron sands concentrate. Mineral dressing studies are underway for the design of a bulk sample plant to produce enough concentrate for a continuous, demonstration-level melt test. Petmin`s investment in NAIC is in a series of phases as follows: Phase 1: US$1.5 million for 5% - Completed Phase 2a: US$2 million for 5.714% - Completed Phase 2b: US$1.5 million for 4.3% - At Petmin`s option Phase 3a: US$6 million for 7.5% - At Petmin`s Option Phase 2b: US$6 million for7.5% - At Petmin`s Option Phase 3c: US$8 million for 10% - At Petmin`s Option CATEGORISATION, JSE LISTINGS REQUIREMENTS This transaction falls under the definition of Section 9.1. (b) of the JSE Listings Requirements and until such a time as the third option is exercised does not comply with any of the categorisation definitions of the JSE listings requirements and is being made in the interest of keeping shareholders updated with the activities of the company. Johannesburg 21 September 2011 Corporate Advisor and Sponsor River Group Enquiries: Petmin Bradley Doig (Business Development Director) +27 824 597 818 Jonathon Rees (Media) +27 76 185 1827 Nominated Advisor (AIM) Numis Securities Limited John Harrison +44 207 260 1000 Broker (AIM) Numis Securities Limited James Black +44 207 260 1000 Sponsor and Corporate Advisor (JSE) River Group Andrew Lianos +27 834 408 365 Date: 21/09/2011 11:08:33 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
