Press releases

Awarding of pre-feasibility study contract

16 September 2008

MDM Engineering (AIM: MDM) the minerals process and project management group that provides services to the mining industry in Africa, is pleased to announce that it has been awarded the contract to undertake the Pre-feasibility Study for Amari Manganese (Pty) Ltd's ("Amari Manganese") Kongoni Manganese Project, (the "Study") in South Africa.

Amari Manganese is 74% owned by the Amari Group, which is an African focused mining entity with several projects of a variety of commodities in Southern Africa. Amari Group is a 37.6% shareholder in MDM Engineering.

MDM Engineering will oversee the Study, for which metallurgical testwork has commenced. A team from MDM Engineering has been appointed to carry out the Study which will cover metallurgy, mining engineering and resource consultancy. The Study will be used to provide a preliminary assessment of the economic viability of the Kongoni Manganese Project (the "Project") and to determine the scope of work for the next phase of development.

The MDM Engineering team has a 19 year track record of undertaking feasibility studies and designing and constructing metallurgical plants and associated infrastructure throughout Africa.


MDM Engineering Group Limited

Grant Lowman/George Bennett
Tel: +27 11 886 7981

Numis Securities Limited

John Harrison (Nominated Adviser)
James Black (Corporate Broker)
Tel: +44 (0) 20 7260 1000

Pelham Public Relations

Candice Sgroi
Tel: +44 020 7743 6376

James MacFarlane
Tel: +44 020 7743 6375

Key information

MDM Engineering Group Limited is a minerals process and project management company that provides services to the mining industry. The Company 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 Company's clients have largely been junior and mid-tier mining corporations with operations in Africa.

The Company 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 Company 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 Company successfully listed on the AIM market of the London Stock Exchange. The Company 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 Company with an attractive and visible revenue stream to drive the Company's growth in the future.

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