Ambatovy Receives Key Malagasy Certification

    -   Project Certified Under Madagascar's Large Mining Investment Act
    -   Ensures tax and legal stability for Project
    -   Project on track for construction to begin by mid-year

    RICHMOND HILL, ON, March 28 /CNW/ - Dynatec Corporation ("Dynatec" - TSX:
DY) is pleased to announce that the Ambatovy Project has received notification
from the Madagascar Government of the Project's certification under
Madagascar's Loi sur les Grands Investissements Miniers (Large Mining
Investment Act or "LGIM"). The LGIM, which was promulgated by the Madagascar
Government in 2002 and developed with the support and assistance of the World
Bank, establishes the legal framework for developing and operating large-scale
resource projects in the country and provides the equivalent of a project
stability agreement. With the receipt of LGIM certification, Ambatovy is on
track for construction to begin by mid-year, subject to completion of the
project debt financing. Based on the current development schedule, the Project
is expected to achieve mechanical completion by early in 2010.
    Bruce V. Walter, President and Chief Executive Officer of Dynatec,
commented: "Receiving LGIM certification is a major milestone for the Ambatovy
Project, one that ensures tax and legal stability for the Project. We
appreciate the constructive manner in which the Madagascar Government managed
the certification process to ensure both that the Country's needs were
accommodated and that the Project could advance on a timely basis."

    Key terms included in the Madagascar's LGIM and the eligibility
certification include:

    -   Tax and legal stability guaranteed;
    -   Corporate tax rates of 10% for the transformation of minerals into
        value-added products, and 25% for straight mining and beneficiation
    -   Investment tax credit based on 50% of capital investment, applied
        against taxes due and payable;
    -   Royalty payment of 1% for value-added mineral products;
    -   Up to 75% debt financing, from external or shareholder sources, and
        repayment of loan principal and interest without withholding tax; 10%
        withholding tax on dividends to foreign shareholders; neutralization
        of value-added tax (VAT) for operations and subcontractors;
    -   Elimination of customs duties and dedicated customs posts for
        import/export with the exception of 5% customs duty on consumables at
        the mine;
    -   International dispute arbitration and waiver of sovereign immunity on
        the enforcement of arbitrated awards; and,
    -   Ability to maintain and operate offshore bank accounts.

    The Ambatovy Project is among the largest nickel projects under
development in the world with production costs for nickel, after by-product
credits, expected to be among the lowest in the industry. Annual production
capacity is estimated at 60,000 tonnes of nickel, 5,600 tonnes of cobalt and
approximately 190,000 tonnes of ammonium sulphate, with an estimated Project
life of at least 27 years.
    Ambatovy is currently owned 45% by Dynatec and 27.5% by each of Sumitomo
Corporation of Japan and Korea Resources Corporation (leading a consortium of
Korean enterprises including Daewoo International Corporation, Keangnam
Enterprises Ltd. and STX Corporation). SNC-Lavalin Inc. has agreed to acquire
a 5% interest in Ambatovy from Dynatec coincident with the closing of the
project debt financing, targeted for around the end of the second quarter of
    The Ambatovy mine site is located 80 kilometres east of the capital of
Madagascar, Antananarivo, and lies within a few kilometers of the main road
and rail system connecting Antananarivo and the main port city of Toamasina on
the east coast. The Project will consist of an open-pit mining operation and
an ore preparation plant at the mine site. The slurried laterite ore will then
be delivered via pipeline to a process plant and refinery located a few
kilometers from the Port of Toamasina.

    About Dynatec Corporation

    Dynatec Corporation is a growing mining company with extensive mining and
metallurgical expertise, developed over many years as a leading service
provider to the mining industry. Dynatec's strategy is to create shareholder
value by applying its mining and metallurgical expertise to attractive
ownership opportunities. The Company currently has three principal growth
assets in its portfolio, including its interest in the Ambatovy Project, a
24.5% ownership interest in FNX Mining Company, and a wholly owned coal-bed
methane lease arrangement in West Virginia.

    Forward-Looking Statements

    This press release contains certain forward-looking statements related to
the potential development, operation and financing of the Ambatovy Nickel
Project. These forward-looking statements are subject to a variety of risks
and uncertainties beyond the Project's sponsors' ability to control or predict
which could cause actual events or results to differ materially from those
anticipated in such forward-looking statements. Readers should refer to
relevant disclosure documents, including Dynatec's most recent Management's
Discussion and Analysis and Annual Information Form, for a review of risks and
uncertainties related to the Ambatovy Project. Accordingly, readers should not
place undue reliance on forward-looking statements.

    %SEDAR: 00008191E

For further information:

For further information: Mark Utting, Director, Communications and
Investor Relations, Dynatec Corporation, (905) 780-1980 x329,

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