Adamus Resources Limited - Construction Progress

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

PERTH, Western Australia, Jan. 14 /CNW/ - Adamus Resources Limited (ASX and TSXV: ADU) ("Adamus" or "the Company") is pleased to report that plant construction activities at the Company's flagship Southern Ashanti Gold Project ("Southern Ashanti") in Ghana have commenced, with the project on schedule to achieve first gold pour early next year.

Adamus Managing Director Mark Bojanjac said, "Commencing plant construction is both a very busy and exciting period for the company. We are extremely pleased with the progress made at Southern Ashanti to date, and look forward to transitioning into a 100,000 oz pa gold producer as this year unfolds."

    
    Lycopodium On-site
    ------------------
    

As scheduled, Lycopodium Engineers has arrived on site in Ghana to commence plant construction works. Construction staff will be accommodated at a nearby hotel leased by Adamus for the duration of construction.

Adamus has been building its own operations and construction team in-country and actively preparing the site and supporting logistics in advance for some time.

Progress to date includes :

    
    Substantial completion of :
    -  Clearing both the village and the plant sites including all required
       compensation payments and approvals.
    -  Sign-off of final process design flowsheets.
    -  Calling tenders for major mechanical equipment items.
    -  Adamus' own construction staff recruitment.
    -  Tender awards for the primary crusher and cyclone.
    -  2 demonstration houses for Salman Village Resettlement and acceptance
       of design.
    -  Modification and lease of a nearby hotel for staff accommodation and
       offices.
    -  Survey of routes and order of materials for both power and water
       supply.
    -  Plant site bulk earthworks and levelling.
    -  Detailed plant site earthworks for the mine office.
    -  Access road works.
    -  Geotechnical confirmatory drilling.

    Commencement and advancement of :
    -  Detailed process plant design.
    -  Detailed earthworks for mill foundations.
    -  Tender documentation for the mining contract.
    -  Block making for village resettlement.
    

A contract for fabrication of the SAG mill was awarded to Outotec last year with site delivery on schedule and expected by August/September this year, within the current construction schedule.

A 3G mobile phone and data transmission tower is being constructed on site at no cost to Adamus.

Photographs can be found at the Company's website via the following link http://www.adamusresources.com.au/index.php?option=com_content&task=view&id=278&Itemid=105

    
    Finance Facility
    ----------------
    

On 21 December 2009 Adamus announced a credit-approved finance facility with Macquarie Bank Limited for up to US$70M. See: http://www.adamusresources.com.au/files/Debt%20Facility%20FINAL%2021_12_09.pdf

Formal loan and security documentation is currently being finalised.

Adamus now has the immediate ability, at its election, to lock a forward gold price at any time prior to drawdown of the loan facility.

"At current gold prices the project is extremely robust with loan payback possible within the first year of operations" commented Adamus' Managing Director, Mark Bojanjac.

    
    Ghana Operations Management
    ---------------------------
    

Adamus has now largely recruited its own on-site EPCM team which is handling design and construction of roads, power and water supplies and the construction of the new Salman Village as wel as managing Lycopodium's process plant construction activity. This team has been active on site since September 2009.

In addition recruitment of key personnel for operations is well advanced with the following key appointments commencing this month:

    
    David McNee - General Manager, Ghana

    David is a mining engineer with more than 20 years experience in mine
    management and operations gained in Africa and Central Asia. David has
    6 years relevant Ghana experience (1997 - 2003), the last 2 as Mining
    Manager for Gold Fields Ghana Ltd (Tarkwa Gold Mine).

    More recently, as General Manager of Societe des Mines de Belahouro SA
    (SMB), David was responsible for the establishment of SMB as a mining
    company in Burkina Faso and for managing the construction of the Inata
    Gold Mine from completion of the feasibility study in October 2007 to
    June 2009.

    Prior to this as Mine Manager for Centerra Gold Inc, Kumtor Operating
    Company (Kyrgyz Republic), David was responsible for managing the mining
    department of a 240 ktonne per day open pit owner operated gold mine.

    Stephen Jones - Commercial Manager, Ghana

    An Accountant with a Bachelor of Business degree, Steve has over
    27 years experience within the mining industry, over 8 of those working
    in operating mines in Ghana. Steve has spent the last 3 years working as
    Finance Manager for Redback Mining (Chirano Gold Mine).

    Prior to this Steve was Vice President Finance for Sierra Leone Diamond
    Company and Financial Controller for Newmont Mining in both Ghana and
    Uzbekistan.
    

Adamus' Managing Director, Mark Bojanjac said that "these key management appointments are timely, providing the Company with essential in-country experience for the operation of our 100,000+oz pa gold mine scheduled to produce in 12 months."

About Adamus

Adamus Resources Limited is a Perth-based mineral exploration company, listed on Australian Securities Exchange (ASX), TSX Venture Exchange (TSX-V) and Frankfurt Stock Exchange Open Market (FSE).

The Company's primary focus is on exploring, realising and expanding the economic potential of the Southern Ashanti Gold Project in Ghana, West Africa. The Project encompasses approximately 665km2 of tenure in the Ashanti Gold Belt - host to over 100moz of gold and the Project boasts excellent access to port and road infrastructure. Ghana is a stable West African country with a long history and some of the world's largest gold mining operations. Gold production is vital to the national economy. Members of the Adamus Board and management team have proven records in mineral exploration, project development and project financing.

    
    Kind regards
    ADAMUS RESOURCES LIMITED

    (signed)

    Mark Bojanjac
    Managing Director/CEO
    

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward Looking Information.

Certain statements included in this announcement, including information regarding Adamus' plans with respect to its mineral properties, constitute forward-looking information. Forward-looking information includes, among other things, statements regarding expected operations. Forward-looking information is based upon a number of estimates and assumptions made by the Company in light of its experience, current conditions and expectations of future developments, as wel as other factors that the Company believes are appropriate in the circumstances. While these estimates and assumptions are considered reasonable by the Company, they are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Investors are cautioned that forward-looking information is no guarantee of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking information due to the inherent uncertainty therein. Forward-looking information is made as at the date of this announcement and the Company disclaims any intent or obligation to update publicly such forward-looking information, whether as a result of new information, future events or results or otherwise.

For further information: For further information: please see our website: www.adamusresources.com.au or contact: Mark Bojanjac - Managing Director/CEO, +61 8 9322 5943, email: mark@adamusresources.com.au; Mark Connelly - Executive Director/COO, +61 8 9322 5943, email: mark.connelly@adamusresources.com.au; For media enquiries contact: Brian Thornton - Farrington National, +61 2 9332 4448, email: bt@farrington.com.au

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ADAMUS RESOURCES LIMITED

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