DMC provides market update on mining activity in the Republic of Congo

Australian iron ore exploration company, DMC Mining Limited (ASX: DMM) ("DMC" or "the Company") is pleased to update the market on recent mining and exploration developments within the Republic of Congo ("ROC") - not to be confused with Democratic Republic of Congo (DRC).

Key Points:

• Xstrata plc recently entered into an agreement with the owners of the early stage Zanaga Iron Ore Project in the Republic of Congo whereby Xstrata will fund a minimum of USD$50 million towards ongoing exploration and a pre-feasibility study in return for an option to acquire a 50% interest in the project. The Zanaga project is located approximately 100km southeast of DMC’s 80% owned Mayoko Iron Ore Project.
• MAG Industries has recently commenced construction of a 600,000 tonnes per year potash project near Pointe Noire.
• Sundance Resources is continuing exploration at its Nabeba iron ore project in the north of Republic of Congo.

On 23rd November 2009, major global diversified mining group Xstrata plc (LSE:XTA) entered into an agreement with the owners of the nearby (100km southeast of DMC’s Mayoko Iron Ore Project) early stage Zanaga iron ore project in the Republic of Congo whereby Xstrata will fund a minimum of USD$50 million towards ongoing exploration and a pre-feasibility study in return for an option to acquire a 50% interest in the project.

Canadian resources company MAG Industries (TSX:MAA) ("MAG") has recently commenced construction at the Makola Potash Project near the port city of Pointe Noire. MAG has spent USD$120 million to date on development of the project and construction costs are estimated to be USD$835 million for phase 1. The planned production rate is 600,000 tonnes per year commencing 2012.

Australian iron ore company, Sundance Resources Limited (ASX:SDL) ("Sundance") is due to commence drilling at its Nabeba iron ore project in the Republic of Congo. The Nabeba project currently has an exploration target of 100 – 250 million tonnes @ 55 – 65% Fe.

Commenting on the recent event in the Republic of Congo, DMC Mining Managing Director, David Sumich said "These events indicate the increasing confidence the international mining community has towards the Republic of Congo as an exploration and mining jurisdiction. The Xstrata investment is a milestone for the Republic of Congo being the first foray into the country by a mining Major"