Amazon Stakes Major Brazilian Potash Opportunity



    
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    TORONTO, Nov. 24 /CNW/ - Amazon Mining Holding Plc (TSX-V symbol: "AMZ")
("Amazon" or the "Company") is pleased to announce it has staked a large
mineral occurrence of a potash bearing rock known as verdete slate
("Verdete"), which is believed to be uniquely suited to Brazil's fertilizer
needs. The Cerrado Verde project ("Cerrado Verde") consists of 84 claims
covering 165,069 hectares and is located on the western part of Minas Gerais
state, in the heart of the country's agricultural region.
    The Cerrado Verde development focus is to achieve the economic recovery
of potash from sedimentary deposits of the Serra da Saudade Formation. The
main potassium-bearing minerals of Verdete are glauconite (a hydrated
potassium-iron silicate) and sericite (a monoclinic, basic potassium
aluminosilicate of the mica group), with K(2)O contents ranging from 5% to
14%.
    VALE (formerly CVRD) controls a significant block of exploration licenses
adjacent to Cerrado Verde. VALE's properties were staked shortly after
Amazon's claims. The accompanying map shows each company's titles holdings;
Amazon's claims are labelled FVS for the Brazilian operating subsidiary.
Amazon controls the majority of the Verdete outcrop. (see
http://files.newswire.ca/760/cerrado_verde.pdf)

    Thermo-Potash and Agricultural History

    Amazon is investigating the viability of applying a pyrometallurgical
treatment process to deliver a semi-soluble thermopotash product or directly
combining the Verdete with a phosphate rock to create thermophosphate potash.
Pyrometallurgical treatment is commonly used in the production of high quality
phosphate. Amazon has been able to access 25 years of agronomical and
metallurgical studies from Brazilian Universities and Technological Centers
that suggest thermopotash is the ideal fertilizer product for Brazil's
nutrient poor, well drained acidic soils. Thermophosphate is a premium product
in Brazil and one that has been successfully marketed locally for over 40
years. It is recognized for its long retention time in soils, which is
important in an environment where heavy tropical rains often wash away, or
significantly dilute, highly soluble product nutrients such as KCl (potassium
chloride, most commonly used potassium mineral for fertilizer).
    Research by Dr. Eichler (1983), Agronomic Engineer, showed that a mixture
of 50% Verdete and 50% magnesian limestone, heated at 1,100 degrees C ("TKL")
is an efficient source of potash. Importantly, TKL and KCl (which is imported
into Brazil from international markets), had equivalent yield impacts despite
the lower concentrations of potassium in the former. The thermopotash product
also had a longer residual impact on crops over successive plantings.
    Studies made by Dr. Leite (1985), Agronomic Engineer and Dr. Valarelli et
al. (1993), Mineralogist, which included pilot plant and agronomic tests,
showed the development of Thermophosphate Potash Calcium-Magnesium ("TKP")
from a mixture of Verdete, phosphate rock, and magnesian limestone. Both TKL
and TKP not only provided potash but also assisted correcting soil acidity; a
problem in Brazil's savannah region and many tropical soils globally.
    The availability and low cost of imported potash from evaporite deposits
through the 1980's and 1990's discouraged the development of Brazil's Verdete
as a potassium source. Amazon plans a technical re-evaluation in the context
of increased and changing agricultural demands in Brazil and technological
advancements.

    Brazil's Potash Market

    Brazil is one of the world's leading exporters of agricultural products
and this sector is a large and growing contributor to Brazil's GDP. Examples
of major exported cash crops include soybean, corn, sugar, and coffee. It is
also a world leader in renewable energy through sugarcane and eucalyptus. All
of these agricultural products require usage of fertilizers in order to ensure
optimum yields.
    With its large and growing agricultural sector, Brazil is currently the
world's second largest importer of potash behind China. Out of a total annual
potash consumption of 4.3MM T in 2007 (Brazilian Government Statistics),
imports accounted for 90% of the country's needs. High KCl prices which
reached $1100 per ton in 2008 and logistic costs make Brazil one of the most
expensive places in the world to buy potash, which erodes profits for the
farmers and tax revenues for the government. Brazilian farmers customarily use
sub-optimal concentrations of fertilizer for their crops because of the high
costs of imported product. In addition there is a vast region of arable
savannah land in Brazil known as the Cerrado that is only partially planted
because the soil lacks the nutrients needed to support cash crops, and the
quantity of imported fertilizer required discourages investments.
    Due to the above, Amazon believes the potential attractiveness of a
semi-soluble thermopotash product will provide financing opportunities from
government, land funds, growers associations, and established fertilizer
distributors and joint ventures. Sticking to its stated goal, Amazon is
exploring options for advancing Cerrado Verde with minimal use of its capital.
    President and Chief Executive Officer Cristiano Veloso said,
"Thermofertilizers are a logical home grown solution to Brazil's increasing
fertilizer needs and hold significant potential to reduce the country's
dependence on expensive imports. Given the significance of agriculture as an
integral part of the Brazilian economy, utilizing Verdete as a potash source
could materially strengthen the sector. Amazon's strong base in Brazil should
afford the Company advantage in generating support to develop Cerrado Verde."

    Amazon Broadens Scope Beyond Gold

    The Company believes potash in Brazil is in a unique position to receive
financing from government and other alternative sources, and because of the
link between potash and food supply it will continue to have strong pricing
through an economic downturn. In the current economic environment, it is
prudent to assess opportunities to build shareholder value beyond the core
focus of gold.

    About Amazon

    Amazon is engaged in creating shareholder value via cost effectively
advancing the Madeira Gold Project and the Cerrado Verde Potash Project, while
diligently assessing merger and acquisition opportunities. Given the current
and foreseeable economic climate, Amazon is preserving cash and adopting a
highly conservative approach to assessing opportunities.

    Competent Person

    As required by Canadian National Instrument 43-101, Amazon's designated
qualified person required for review of the technical and scientific
information herein contained is Dr. João Batista G. Teixeira, Chief
Geoscientist of the Company.

    
    On behalf of the Board of Directors of Amazon Mining Holding Plc,

    Cristiano Veloso, President & Chief Executive Officer


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    Cautionary Language and Forward Looking Statements
    --------------------------------------------------
    
    THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
OR ACCURACY OF THIS RELEASE AND THE INFORMATION CONTAINED HEREIN. THIS PRESS
RELEASE CONTAINS CERTAIN "FORWARD LOOKING STATEMENTS", WHICH INCLUDE BUT IS
NOT LIMITED TO, STATEMENTS WITH RESPECT TO THE FUTURE FINANCIAL OR OPERATING
PERFORMANCE OF THE COMPANY, ITS SUBSIDIARIES AND ITS PROJECTS, STATEMENTS
REGARDING USE OF PROCEEDS, EXPLORATION PROSPECTS, IDENTIFICATION OF MINERAL
RESERVES, COSTS OF AND CAPITAL FOR EXPLORATION PROJECTS, EXPLORATION
EXPENDITURES, TIMING OF FUTURE EXPLORATION AND PERMITTING, REQUIREMENTS FOR
ADDITIONAL CAPITAL, GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL
RISKS, RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, AND LIMITATIONS OF
INSURANCE COVERAGE. FORWARD LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED BY
THE USE OF WORDS SUCH AS "PLANS", "EXPECTS", OR "DOES NOT EXPECT" OR "IS
EXPECTED", "ANTICIPATES" OR "DOES NOT ANTICIPATE", OR "BELIEVES", "INTENDS",
"FORECASTS", "BUDGET", "SCHEDULED", "ESTIMATES" OR VARIATIONS OF SUCH WORDS OR
PHRASES OR STATE THAT CERTAIN ACTIONS, EVENT, OR RESULTS "MAY", "COULD",
"WOULD", "MIGHT", OR "WILL BE TAKEN", "OCCUR" OR "BE ACHIEVED". FORWARD
LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE
COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR
ACHIEVEMENTS EXPRESSED OR IMPLIED BY SAID STATEMENTS. THERE CAN BE NO
ASSURANCES THAT FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS
ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE
ANTICIPATED IN SAID STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE
RELIANCE ON FORWARD-LOOKING STATEMENTS.
    Readers are cautioned not to rely solely on the summary of such
information contained in this release and are directed to the complete set of
drill results posted on Amazon's website (www.amazonplc.com) and filed on
SEDAR (www.sedar.com) and any future amendments to such. Readers are also
directed to the cautionary notices and disclaimers contained herein.
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For further information:

For further information: please contact Cristiano Veloso, President &
Chief Executive Officer, Tel: +44 (0) 20 8133 7607, Fax: +44(0)20 7405 7773,
Email: cv@amazonplc.com OR Jed Richardson, VP Corporate Development, Tel:
(416) 866-2966, Fax: (416) 866-8829, Email: jed@amazonplc.com,
www.amazonplc.com

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