Lysander Minerals Corp (C:LYM)
Shares Issued 23,046,130
Last Close 3/13/2009 $0.11
Monday March 16 2009 - News Release

Mr. Bryce Porter reports

IMPROVED OPTION AGREEMENT, GOOD PROGRESS IN UKRAINE

Lysander Minerals Corp. has completed an agreement with Ukraine Coal Ltd. (UC) of the United Kingdom that amends and extends Lysander's option to acquire UC's 100-per-cent interest in Ukraine Energy Limited (UEL) of Ukraine. UEL has a 51-per-cent interest in Skhidna Vugilna Kompania (East Coal) which plans to reactivate the Verticalnaya anthracite mine in Ukraine's Donbass region.

Subject to regulatory approval, Lysander may now acquire UEL on or before June 30, 2009, by issuing 22 million of its common shares to UC. A royalty of $1 (U.S.) per tonne sold will be payable by UEL from its share of future distributions of profit by East Coal. The previous agreement had required consideration of $12-million, one-half in cash and one-half as a convertible note, to acquire UEC.

Over the past six months, there has been significant progress in this transaction. A technical report, NI 43-101-compliant, has been filed and can be viewed at SEDAR and on Lysander's website. The report projects return on investment (ROI) in excess of 30 per cent and a net present value that is comfortably over $300-million (U.S.) using a 12-per-cent discount rate, indicating the large potential of the mine. East Coal company has had considerable success in developing detailed plans and in working with supervisory, licensing and permitting agencies. Licences and permits necessary for development and mining activities are now substantially all in place.

In response to the deterioration in financial markets, Lysander and East Coal are assessing methods to develop early, profitable production at a reduced capital cost as a first stage. Full-scale development is intended to follow as financial markets improve. Plans for the first stage should be submitted shortly for additional review by Ukraine authorities. Arrangements for the long-term rental of certain mine infrastructure assets are also well advanced and are expected to be concluded before June 30.

The project has established reserves, existing mine assets, a premium product, an existing competent team to direct operations, licences and permits necessary for operations and high projected returns on investment.

Discussions are in progress regarding financing for the first stage.