• First proceeds received from sale of PGM alloy with an average basket price of US$2,230/oz
• Mintek confirms achievement of contractual milestones in ConRoast agreement

In the six months to March 2008 Braemore has produced approximately 11 000ozs of 4 PGM and gold in granulated alloy form. The company received its first revenue of US$10.3m for sold PGM and gold, at a basket price of US$2,230/oz, it said in a statement on Thursday.

In addition the company will receive approximately US$1 m in future payments for the outstanding base metal content of the alloy, depending on base metal prices and exchange rates on settlement.

In a separate transaction Braemore has successfully negotiated to sell PGM alloy directly back to the smelter feed supplier which will generate a further US$4.5m, and lower outstanding debt incurred on purchase of concentrates.

Since October 2007, Braemore has successfully treated low PGM content, high chromium smelter feed at its ConRoast demonstration facilities using Mintek's DC arc furnace in South Africa at a rate of around 1000 tonnes per month of low grade feed to produce more than 600 tonnes of alloy containing PGM, with recoveries typically running at greater than 99%.

This represents the successful demonstration of the ConRoast process and Braemore has now met contractual milestones set by Mintek. Sales contracts for future delivery of smelted PGM alloy have been entered into with a number of refiners and PGM producers.

Commenting on Braemore achieving this milestone Mr Tom Curr, manager of Mintek's Pyrometallurgy Division said "Mintek and Braemore have developed an excellent working relationship and the contractual milestones have all been achieved. The DC arc technology has proved to be extremely robust and reliable and preparations are well advanced for upgrading the smelter to a nominal power of 3.2MW which will increase capacity to 2000t per month of concentrate."

Small scale roasting and smelting tests on a range of PGM concentrates have been completed, and trial converting tests of the PGM alloy have been conducted. These samples have been utilised as feed for subsequent additional leaching tests on the alloy. A conceptual design has been prepared for a hydrometallurgical pilot plant which will begin operation in the second half of 2008. – Press Release