ERAMET and the Otjozondu Mining shareholders, Oreport and Otjozondu Holdings, have executed on July, 29, 2008 a partnership to study the feasibility of a manganese mining operation on the Otjozondu deposit in Namibia.

This partnership takes the form of an option granted to ERAMET by the Otjozondu Mining shareholders. Through this option, the partners will join forces for the upcoming 18 months to draft a feasibility study for the development of a manganese mining operation on the Otjozondu deposit. ERAMET will have the option to buy a majority stake in the project and implement its business plan. Subject to certain suspensive conditions, such option will enter into force at the latest on October 15, 2008. Oreport and Otjozondu Holdings will remain strong local partners.

Philippe Vecten, Senior Executive Vice-President, head of ERAMET's Manganese Division, stated that "this project is an opportunity for ERAMET to develop its manganese business through a manganese mine in Namibia. The Otjozondu Project could eventually be a major asset for ERAMET and will remain a top priority for us in upcoming 18 months."

Dr. Hans Wilhelm Rûnz, Chairman of Otjozondu Mining (Pty) Ltd. and Otjozondu Holdings (Pty) Ltd. stated that "this project expands the existing operations of Otjozondu Mining and has the potential to bring Namibia on the list of the few large international Manganese producing countries and to contribute significantly to the Namibian economy."

Mr Ian Falcon, Managing Director of Oreport, reinforced this view and said that "Oreport is excited to be involved in developing this resource and looks forward to the opportunity to provide the logistical and other services to Otjozondu Mining beyond what was initially contemplated."

The Otjozondu manganese ore deposit is located in the center of Namibia, approximately 150 km North-East from Windhoek. Several tens of millions of tons of ore resources are expected to be identified by the feasibility study. – Press Release