Press releases

First gold bullion pour for newly commissioned Ezulwini Plant

5 August 2008

MDM Engineering Group Ltd (AIM: MDM) is pleased to announce the commissioning of the first phase of the Ezulweni gold and uranium plant for First Uranium Corporation at Westonaria in South Africa.

The first 1.5 kilograms of gold bullion was poured from the plant on Monday 28th July 2008, marking a milestone for both MDM Engineering and First Uranium Corporation.

The Ezulwini gold plant and uranium plant are the first metallurgical processing plants which the Group has constructed since the formation of MDM Engineering in February 2006.

The original bankable feasibility study for the project was completed by its predecessor company MDM Ferroman. MDM Engineering was awarded the full EPCM and project management contract pursuant to which it constructed a crusher, a 0.6mtpa mill, a gravity floatation unit and carbon-in-leach treatment facility.

It is the first phase in the project development of First Uranium's Ezulwini gold and uranium mine.

The construction of the 200,000 tonne per month gold and uranium plant began in May 2007 and was budgeted to cost US $110 million.

The first phase of the 100 000 tonne per month gold plant started commissioning in April 2008 on schedule and on budget.

MDM Engineering CEO, Grant Lowman commented:

"Considering the challenging market conditions since the project began, in terms of the pressure on costs caused by foreign exchange fluctuations, power cuts and long lead times on equipment, to complete this first phase of the project on time and on budget is a great achievement for MDM Engineering."


MDM Engineering Group Limited

Grant Lowman
+27 11 886 7981

George Bennett
+27 11 886 7981

Numis Securities Limited

John Harrison (Nominated Adviser)
+44 20 7260 1000

James Black (Corporate Broker)
+44 20 7260 1000

Pelham Public Relations

Candice Sgroi
+44 20 7743 6376

Chelsea Hayes
+44 20 7743 6675

Key information:

MDM Engineering Group Limited is a minerals process and project management group that provides services to the mining industry. The Group provides a wide range of services from preliminary and final feasibility studies, through to plant design, construction and commissioning, to mining companies. To date, the Group's clients have largely been junior and mid-tier mining corporations with operations in Africa.

The Group was established in November 2006. In February 2007, the Group purchased out of liquidation certain of the intellectual property and fixed assets of MDM Ferroman (Pty) Limited ("MDMF"), a mining services company with an established track record of providing services to the African mining industry. The Group subsequently employed a number of the technical staff of MDMF, and implemented an approach to project execution based on a transparent, open-book Engineering, Procurement, Construction Management ("EPCM" or "cost-plus") basis. In May 2007, the Group successfully listed on the AIM market of the London Stock Exchange. MDM Engineering now has what the directors consider to be a strong portfolio of current studies and execution projects and a strong outlook of prospective work, which the directors believe provides the Group with an attractive and visible revenue stream to drive the Group's growth in the future.

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