PETMIN LIMITED - PETMIN INCREASES INVESTMENT TO 22.5% IN NORTH ATLANTIC IRON CORPORATION (NAIC)

PETMIN INCREASES INVESTMENT TO 22.5% IN NORTH ATLANTIC IRON CORPORATION (NAIC)

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 to 22.5% in North Atlantic Iron
Corporation (NAIC)

Petmin is pleased to announce that it has increased its stake
in the North Atlantic Iron Corporation (NAIC) from 17% to
22.5% based on the project's technical and economic viability.

Petmin has joint management control of NAIC, which is
developing an iron sands to pig iron project in Canada's
Labrador province. Petmin has an earn-in option to acquire up
to 40% of NAIC for a total of US$25 million, plus a further
option to acquire an additional 9.9% at a market-related
price.

At 30 June 2012, Petmin's investment was US$6.5 million for
17% of NAIC. Petmin has recently invested a further US$4.5
million for an additional 5.5%, taking its holding in NAIC to
22.5%.

The increased investment follows a March 2012 maiden resource
statement which indicated that NAIC's iron sands resource
provides an abundant low-cost feedstock for production of a
concentrate which can be converted into high-purity pig iron.
The resource statement, based on just 3% of the NAIC claim,
indicates a 20 to 25 year life of mine for Phase 1 production
of 500,000 tonnes of pig iron annually.

An updated resources statement is expected to be issued during
Q4 2012 followed by a NI43-101 compliant statement in Q1 2013.

NAIC has support from the Canadian government and the Atlantic
Canada Opportunities Agency (ACAO) has invested $500,000 in
the project to partly finance the concentrator pilot plant
through a repayable loan from ACOA's Business Development
Program.

The NAIC claim has been explored to a depth of 15 metres.
Aeromagnetic and Lidar surveys, and deeper drilling subsequent
to the maiden resource statement, indicate potential for the
NAIC iron sands resource to be extended to well below this
level. A pilot mineral processing plant has been commissioned
alongside the NAIC resource in Goose Bay, Labrador, and the
first concentrate is expected to be produced during August
2012.

NAIC has appointed consultants TWP Holdings (Pty) Limited
(TWP) to undertake the Preliminary Economic Assessment (PEA)
which will be followed by a Pre-Feasibility Study. It is
estimated that the PEA will be completed by Q1 2013.

Tenova Core (Tenova) has been appointed to undertake the
engineering design for the pig iron processing plant and will
oversee metallurgical test work and a smelt test using the
concentrate produced by the pilot plant. It is estimated the
smelt test will be completed during Q1 2013.

NAIC has also appointed engineering consultants HATCH to
undertake a peer review of both TWP and Tenova for the
purposes of the NI 43-101 statement and PEA sign-off.

"Geological and metallurgical results to date give Petmin good
reason to be optimistic about its investment in NAIC, said
Petmin director of business development, Bradley Doig.

We are confident NAIC will soon have independent verification
that the project will deliver a quality concentrate which
becomes a low-cost feedstock for high-purity pig iron.

The project's proximity to major steel markets, and access to
labour and essential infrastructure such as power and a deep
water port mean we expect NAIC production to be in the lowest
quartile of the cost curve," Bradley Doig said.

Pig Iron - the commodity
Pig Iron is used as a feedstock in the steel making process.
Most world production of pig iron is used in integrated steel
mills with merchant pig iron (pig iron traded on world
markets) making up about 70 to 80 million metric tons of the
approximate 1.1 billion tonnes produced globally.

Significant merchant pig iron producers are located in Brazil,
Russia and Ukraine. Brazilian producers are expected to be the
most direct competitors to NAIC due to their proximity to the
US market.

In December 2011 it was estimated that the median cost of
production of the Brazilian pig iron producers was around
US$460 per tonne delivered free on board to New Orleans
(Stemcor  Dec 2011).

World Steel Dynamics estimates the world pig iron production
requirements to increase to approximately 1.7 billion tonnes
in 2025 from 1.1 billion tonnes in 2011.

Enquiries:
Petmin
Bradley Doig (Director of business development)
+27 11 706 1644

Media
Jonathon Rees
Jonathon@proofcommunication.com
+27 76 185 1827

Sponsor and Corporate Advisor (JSE)
River Group
Andrew Lianos
+27 83 440 8365

Nominated Adviser and Broker (AIM)
Macquarie Capital (Europe) Limited
Steve Baldwin, Nicholas Harland
+44 20 3037 2362

Johannesburg
16 August 2012



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