Tiger Resources Announces Successful Completion of DRC Government Review of Kipoi Mining Contract



    PERTH, Western Australia, Jan. 27 /CNW/ - Perth-based emerging copper
miner Tiger Resources Ltd (ASX/TSX - TGS) ("Tiger" or the "Company") is
pleased to announce that a revised agreement has been signed with La Générale
des Carrières et des Mines ("Gécamines") in respect of the contractual
arrangements governing the Kipoi Project.
    In 2007 the Government of the Democratic Republic of Congo ("DRC")
established a commission to review the DRC State's interest in more than 60
joint venture contracts governing mining projects. The review by the
Government of the DRC of the contractual arrangements governing the Kipoi
Project is now complete.
    The rights to the Kipoi Project are held by SEK sprl ("SEK"). SEK is a
DRC registered company jointly owned by Congo Minerals sprl ("Comin", 60%) and
Gécamines (40%). Tiger is acquiring a majority interest in the Kipoi Project
pursuant to an agreement with the shareholders of Comin.
    The revised agreement with Gécamines upholds the security of title of the
Kipoi Project and confirms the interests of the parties in SEK, which remain
unchanged. Principal amendments to the original contractual arrangements
governing the Kipoi Project are as follows:

    
    -   Royalty - Gécamines shall be entitled to a 2.5% royalty on gross
        sales (previously Gécamines was entitled to a 4.5% royalty on gross
        sales).

    -   Cash Payments - Payments are to be made by Comin to Gécamines as
        follows (previously no such cash payments were payable to Gécamines):

        -   US$3 million upon the revised agreement coming into effect.
        -   US$2 million on commencement of production.
        -   US$2 million on the first anniversary of commencement of
            production.
        -   A further US$35/tonne of copper for proven reserves above 200,000
            tonnes of copper.

    -   Feasibility Study - Comin to submit an updated feasibility study
        within 6 months of the revised agreement coming into effect.

    -   Project Development Funding - Comin to provide 30% of development
        funding by way of non-interest bearing loans. Interest payable by SEK
        on the remaining 70% of development funding to be capped at LIBOR
        plus 3.5%.
    

    Tiger considers the positive resolution of the DRC Government mining
contract review to be a significant step forward in its efforts to
successfully develop the Kipoi Project. In March 2008 the initial inferred
resource for Kipoi Central was estimated at 13.4Mt at 3.3% Cu containing
439,000 tonnes of copper, 20,000 tonnes of cobalt and 1,416,000 ounces of
silver. A feasibility study for the first stage of development was completed
in September 2008 based solely on mining of the high grade oxide (+3.25% Cu
ore) section at Kipoi Central, which comprises Measured and Indicated
Resources of 2.86Mt @ 8.1% Cu, containing 232,000 tonnes of copper (Table 1).
It is anticipated that an optimisation study commenced in late 2008 and
targeting a reduction in capital and operating costs will be completed in
February 2009.

    
    -------------------------------------------------------------------------
    Table 1: Measured and Indicated Resource (lower cut off 5.0% Copper)
    -------------------------------------------------------------------------
                          Mt         Cu%        Co%    Cu (000't)  Co (000't)
    Measured             1.93        8.5        0.2        164          3
    Indicated            0.93        7.4        0.1         68          1
    -------------------------------------------------------------------------
    Total                2.86        8.1       0.15        232          4
    -------------------------------------------------------------------------
    

    In addition, drilling has also been undertaken at the Kipoi North,
Kileba, Kaminafitwe and Judeira deposits. The conceptual target for
exploration is to define oxide and sulphide resources in excess of 1 million
tonnes of contained copper by mid 2009 to support future production of 100,000
tpa of copper metal.
    Tiger has been in discussions with a number of financial institutions and
potential offtakers in respect of the provision of funding to support project
development at Kipoi Central. The mining contract review has been a
significant hurdle in advancing these discussions, and following completion of
the mining contract review and the optimisation study the Company will be in a
position to finalise discussions with potential project financiers.

    Additional Notes:

    The Information in this report that relates to Mineral Resources of the
Kipoi Project is based on a resource estimate compiled by Mr Ted Hansen and Mr
Rick Adams, both of whom are members of the Australasian Institute of Mining
and Metallurgy ("AusIMM"). Mr Hansen and Mr Adams are directors and full time
employees of Cube Consulting Pty Ltd and are independent of Tiger. Mr Hansen
and Mr Adams each has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the
2004 Edition of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves" (the "JORC Code") and to qualify as a
"Qualified Person" under National Instrument 43-101 - Standards of Disclosure
for Mineral Projects ("NI 43-101"). Mr Hansen and Mr Adams consent to the
inclusion in this news release of the matters based on their information in
the form and context in which it appears.
    Scientific or technical information in this news release other than that
related to Mineral Resources of the Kipoi Project has been prepared under the
supervision of Mr David Young, Managing Director of the Company and a member
of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Young has
sufficient experience which is relevant to the style of mineralization under
consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the JORC Code) and to qualify as a "Qualified
Person" under NI 43-101. Mr Young consents to the inclusion in this news
release of the matters based on his information in the form and context in
which it appears
    Caution Regarding Forward Looking Statements: The forward-looking
statements made in this news release are based on assumptions and judgments of
management regarding future events and results. Such forward-looking
statements, including but not limited to the Company's plans with respect to
the development of the Kipoi Project, the optimisation study and the provision
of funding to support project development, 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
anticipated future results, performance or achievements expressed or implied
by such forward-looking statements. Such factors include, among others, the
actual market prices of copper, cobalt and silver, the actual results of
current exploration, the actual results of future mining, processing and
development activities, changes in project parameters as plans continue to be
evaluated, as well as those factors disclosed in the Company's filed
documents.
    Assay results in this news release were prepared by the independent
laboratory, ASL Chemex, Western Australia.





For further information:

For further information: in respect of the Company's activities, please
contact: David Young, Managing Director, Tel: (+61 8) 9240 1933, Email:
dyoung@tigerez.com; Reg Gillard, Chairman, Tel: (+61 8) 9240 1933, Email:
gillardr@tigerez.com.au; Patrick Flint, Director, Tel: (+61 8) 9240 1933,
Email: pflint@tigerez.com; Company website: www.tigerresources.com.au

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