EMED MINING QUARTERLY REPORT

NICOSIA, Cyprus, Jan. 24 /CNW/ - EMED Mining Public Limited (AIM: EMED, TSX: EMD) ("EMED Mining" or "the Company"), the Europe-based minerals development and exploration company, announced today the following overview of its activities for the three month period ended 31 December 2010 and including significant post period developments that have occurred throughout January 2011.

Key Points

Corporate

>      On 20 December 2010, EMED Mining commenced trading on the Toronto Stock Exchange ("TSX") under the symbol "EMD".
>      In conjunction with the TSX listing, EMED Mining raised a total of C$34.9 (~£21.9) million via an Initial Public Offering in Canada, a concurrent Private Placement in the UK and subsequent exercise of the over-allotment option granted to the Company's Canadian Agents.

Rio Tinto Copper Mine - Spain

>      In December 2010 the requested letter of non-opposition to the Administrative Standing application was signed by the fourth member of the Liquidation Commission of the company Minas de Rio Tinto ("MRT"), the last-approved owner/operator. This fulfils a request of the mining regulatory authorities and the next step is for the authorities to grant administrative approval of the mineral rights acquired by EMED Mining in 2007 (i.e. - to grant Administrative Standing).
>      EMED Mining submitted to the relevant authorities in mid-2010 all of the technical and economic reports required for the regulatory process initiated in May 2009 for the grant of Administrative Standing, including those that set out the plans to commission production at the Rio Tinto Copper Mine in late 2011.
>      In January 2011, one of the four principal regulatory authorities with responsibility for the Rio Tinto Copper Mine, Andalucía's Department of Culture and Heritage conditionally approved, from a heritage point of view, the Company's proposed mining activities as detailed in various submissions. This represents the first formal response to the Company's application for Administrative Standing. Responses from the three other departments are awaited.
>      Behre Dolbear International Ltd completed a NI 43-101 Technical Report which independently reviewed the various studies on reopening the Rio Tinto Copper Mine.
>      The copper price has recently attained record levels and has traded at >US$4.00/lb since early December 2010. The chart below details the Rio Tinto Copper Mine's projected average net operating cash flow at a range of copper prices under the current "base case" plan.

To view Average Annual Operating Cash Flow please visit: http://files.newswire.ca/908/EMEDAAOCF.pdf

Detva Gold Project - Slovakia

>      Behre Dolbear International Ltd completed a NI 43-101 Technical Report which independently reviewed the various studies on the Biely Vrch Gold Deposit.
>      EMED Mining is progressing feasibility work, community consultation, environmental studies, and approvals required for the proposed open-pit mine at Biely Vrch producing ~60,000 ounces of gold per year at an average cash cost of ~US$530/ounce.
>      The permitting process for Biely Vrch has advanced to being granted Protective Deposit Status over the Biely Vrch gold deposit. The next important milestone is the award of a Mining Lease.

Regua Tungsten Project - Portugal

>      Payment completed to acquire an exclusive option over Regua following approval by EMED Mining's shareholders on 22 November 2010.
>      Preliminary meetings with regulatory authorities have identified the matters which need to be evaluated and prioritised in order to assess the potential to develop Regua.

Harry Anagnostaras Adams, Managing Director of EMED Mining, commented:

"EMED Mining has progressed on schedule over the past few months towards our primary goal of restarting the Rio Tinto Copper Mine in Spain.

"We received the requested fourth signature from the Liquidation Commission of a past owner of the mine, which the regulator requested in order to continue with the mine approval process.

"Shortly thereafter we received a favourable report from Andalucía's Department of Culture and Heritage providing a conditional approval, from a heritage point of view, of our planned mining activities. The next steps are for the Water Authority, the Department of Environment and the Department of Industry to respond.

"We welcome many new shareholders following our recent successful listing on the TSX and associated capital raisings totalling C$34.9 (~£21.9) million.

"This equity funding essentially provides funds to advance the Rio Tinto Copper Mine as fast as the regulatory-administrative process allows and for us to now turn our corporate attention on the project finance arrangements.

"The next scheduled permitting milestone is for the Company to be granted Administrative Standing over the mineral rights that it acquired in 2007.

"Based on our detailed planning and assuming the timely processing of regulatory applications and associated negotiations, the Rio Tinto Cooper Mine is on-track to start mining and commissioning the process plant in late 2011."

Overview of Strategy

EMED Mining is led by international minerals industry specialists and has its corporate headquarters in Cyprus, geographically central to the Company's areas of interest and a member of the European Union and British Commonwealth.

EMED Mining is committed to building Europe's premier mining company through the responsible development of metal production, with an initial focus on copper, gold and critical raw materials.

The International Cyanide Management Institute (ICMI) has recently announced that it had accepted the application of EMED Mining Public Limited to become a signatory to the International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold.

The strategy is to evaluate and prioritise metal production opportunities in several jurisdictions throughout the well-known belts of base and precious metal mineralisation in the European region.

To view Map of Company's projects please visit: http://files.newswire.ca/908/emedmap.pdf

Over the longer term, it is the Company's goal to develop a group of production units across several jurisdictions from the operations base in Spain. Since becoming a publicly listed company in 2005, EMED Mining has achieved 100% ownership of two major projects with significant resource bases:

>      Rio Tinto Copper Mine in Spain has substantial processing and mining operations infrastructure in place, which has been reorganised by EMED Mining. Measured and Indicated Resource estimates (at a cut-off grade above 0.20% copper) total 933,000 tonnes of contained copper (203.1 million tonnes at 0.46% copper). The Company is now focused on completing permitting, starting production and then optimising and expanding the operations and mine life.
>      Detva Gold Project in Slovakia contains the Biely Vrch porphyry gold deposit that EMED Mining discovered by applying the latest exploration techniques in a prolific mining district. Further work towards developing Biely Vrch is being undertaken following the completion of a positive Scoping Study, open-pit mining operation producing 3Mtpa of ore for ~60,000 ounces of gold per year at an estimated average cash cost of approximately US$530/ounce over ten years. The scoping study is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as ore reserves, and there is no certainty that the preliminary assessment will be realised.

The Company has earlier-stage activities in Cyprus and Portugal, as well as via associate KEFI Minerals which operates early-stage exploration joint ventures in Turkey and the Kingdom of Saudi Arabia.

EMED Mining is managed by a multi-cultural team drawn initially from Australia and the Americas and now mainly comprised of Spanish citizens. The main priority for the short term is to safely and efficiently start copper production at the Rio Tinto Mine once EMED Mining has completed the regulatory approval process, financed the start-up and obtained shareholder approval.

Spain - Rio Tinto Copper Mine

EMED Mining, via its wholly-owned subsidiary EMED Tartessus, owns 100% of the Rio Tinto Copper Mine in Andalucía, Spain.

The established open pit mine, copper-concentrator plant and other infrastructure at the Rio Tinto Copper Mine provide an excellent opportunity to bring a large copper mine into production at a relatively low total cost at a time of global copper shortage and high local unemployment.

During the quarter, key Spanish trade unions, employer groups and political parties actively lobbied the relevant government leaders and instrumentalities for the mine to be restarted. Support for restarting the mine is now well established within all surrounding communities.

The restart is expected to be relatively straight-forward from an operational perspective, with an established infrastructure and processing facility that can be readily restarted, albeit with aspects to be updated to incorporate mining industry improvements that have been developed over the past 20 years.

Letter of Non-Opposition Signed

In late December 2010, EMED Mining received the requested fourth signature to the statement of non-opposition (to the request for Administrative Standing commenced in May 2009 by EMED Tartessus) from members of the Liquidation Commission representing the previous owner of the mineral rights, MRT.

The Company understands that the letter of non-opposition was signed by the President of the Liquidation Commission, after he had consulted representatives of local government, unions, employer groups and the creditors represented by the Liquidation Commission.

The letter of non-opposition was requested by the Junta de Andalucía as a prerequisite to it considering the grant of Administrative Standing to the Company, an approval required to be obtained by the Company in order to re-start the Rio Tinto Copper Mine. The executed letter of non-opposition has been formally submitted to the Junta for its review. The Company is of the view that this was the last document required to complete the application for Administrative Standing, having submitted all other technical and economic reports in mid-2010.

Subject to confirmation by the Junta, the Company believes that the Junta will now begin the formal review process to grant the Administrative Standing that the Company is seeking, such Administrative Standing to be granted upon the Junta confirming that the Company has satisfied the authorities that it possesses the legal, technical and economic capacity to operate the Rio Tinto Copper Mine.

Conditional Heritage Approval

In January 2011, the Department of Culture and Heritage of the Junta de Andalucía provided a favourable report regarding the Company's plans for the Rio Tinto Copper Mine.

One of the four principal regulatory authorities with responsibility for the Rio Tinto Copper Mine, the Department of Culture and Heritage has conditionally approved, from a heritage point of view, the Company's proposed mining activities as detailed in various submissions. This represents the first formal response to the Company's application for Administrative Standing. Responses from the three other departments are awaited.

The approval of the Department of Culture and Heritage is subject to certain conditions that are largely aimed at ensuring that the extensive heritage at Rio Tinto is clearly documented and then preserved or studied appropriately as mining, processing and rehabilitation are carried out responsibly. This favourable report will become a legal resolution upon agreement between the Junta and the Company on the required modifications and conditions.

EMED Mining will be required to inform the Department of Culture and Heritage prior to disturbing any heritage item at the Rio Tinto Copper Mine.

Steps to Restart Copper Production

The most recent timetable has been in place since late 2009 and takes into account the requests of the authorities at that time. This roadmap targets the commencement of mining and processing of ore by the end of 2011. The steps between now and then are:

>      Formal acknowledgement by the mining regulatory authorities of the Company's Administrative Standing as owner of the mineral rights acquired in 2007.
>      Formal public hearings in respect of the project submissions and the subsequent adjustment of any aspects of the project as agreed at those hearings. Regular informal public briefings have been held for a number of months in the surrounding communities.  The Company and its plans for the Rio Tinto Copper Mine project have received overwhelming support at those public briefings.
>      Completion of site safety and check-up procedures before commencing the restart project execution program. These pre-project execution activities include detailed engineering and contract letting, full electrification of the site, fencing, replacement of asbestos cladding and painting of buildings, drilling below the open pit to confirm the location of underground mine workings and to improve the reliability of geological data for grade control in initial production zones, and the ordering of long-lead time items.
>      Shareholder and financier approvals of the final project.
>      Appointment and induction of the workforce and contractors.
>      In Q3-11, triggering the six-month restart project execution program.

The achievement of this rigorous timetable is reliant on timely commitment by relevant regulatory authorities.

Interference and Obstruction

The Company and its personnel have, over the past two years, been subjected to and continue to be subject to a campaign from a shareholder of MRT (in liquidation) and former de facto controller of MSA (now controlled by the MRI Group, an EMED Mining shareholder). The purpose of the campaign appears to be to undermine the Company's ability to progress the Rio Tinto Copper Mine including, but not limited to, interference with the Company's ability to obtain the Administrative Standing needed to operate the Rio Tinto Copper Mine. This individual has been banned by the Junta de Andalucia from holding the position of Director Facultativo (Registered Engineer) for MRT.

Two owners of adjoining lands, including sections of the tailings storage facilities, have at times collaborated with this individual and interfered with the Company's efforts to maintain public safety with respect to the management of surface run-off waters in and around the tailings facilities. The Company has reported to the authorities that it is being impeded from conducting several important activities for preserving public safety, including carrying out specified physical works on tailings facilities and other contaminated lands, as well the arrangement of specified insurances and bonding for environmental rehabilitation. The Company and its consultants have set out to the regulatory authorities a comprehensive set of waste and water management improvements to be triggered upon the authorities granting Administrative Standing to the Company.

These parties have, between them, physically obstructed care and maintenance and other normal activities of Company personnel. They have also initiated various legal and other actions as part of a strategy of interference, including complaints and allegations to various regulatory authorities in Spain, Canada and England.

Most recently the Andalucian Water Authority has enjoined as co-defendants the other co-owners of the tailings facilities in the Administrative File opened preliminarily solely against EMED Mining for alleged unauthorised discharges. The Administrative File was opened against the Company as a result of complaints filed by the other tailings-facilities' co-owners themselves (and now co-defendants) as the legislation provides that all co-owners must exercise the same standard of care and duty as that being exercised by the Company in the discharge of their obligations to care and maintain the tailings facilities. The Administrative File has since been suspended pending the outcome of the court´s separate inquiries into further complaints filed by the other tailings-dam-co-owners of the tailings facilities. It is expected that all complaints against the Company will be dismissed in due course.

A judicial decision has also been handed down regarding the request by former MRT employees to have an embargo ("lien") placed on certain properties owned by the Company but formerly owned by MRT (now in liquidation) to secure salaries allegedly owing to them. The Court has now rejected this claim by the former employees as it found that the Company had demonstrated that the salary amounts had in fact already been paid by the State Guaranteed Salary Fund. In its decision, the Court awarded costs to the Company.

No claim filed or allegations made against the Company to date have been successful nor have they succeeded in damaging the Company. The Company has at all times maintained public safety and ensured the integrity and stability of the tailings facilities, thereby ensuring the protection of the environment, people and roads in the vicinity. However, the Company is likely to have advanced the project more quickly had these interference activities not taken place.

NI 43-101 Technical Report

Since becoming involved with the Rio Tinto Copper Mine in 2007, EMED Mining has engaged a number of technical experts as part of its due diligence on the project.

In November 2010, Behre Dolbear International Ltd completed the report entitled "Amended and Restated NI 43-101 Technical Report on Reopening the Rio Tinto Copper Mine, Huelva Province, Spain" dated November 17, 2010 prepared by Denis Acheson B.Sc.Eng., B.A. (Hons), MMMSA, Richard J. Fletcher M.Sc., FAusIMM, MIMMM, C.Geol., C.Eng., Julian Bennett, B.Sc.Eng., ARSM, FIMMM, C.Eng. and John Tait B.Sc.Eng., M.Sc., P.Eng., each of whom is a "qualified person" and "independent" as those terms are defined in NI 43-101. This report was filed with various regulatory authorities as part of the process for EMED Mining's dual listing on the TSX and is available on SEDAR under the Company's profile at www.sedar.com as well as on the Company's website at www.emed-mining.com.

As detailed in the Behre Dolbear Technical Report, key anticipated production parameters for the Rio Tinto Copper Mine are:

>      Ramp-up to a 9Mtpa throughput over a two-year period;
>      Ore Reserve = 123Mt at 0.49% copper, containing 606,000 tonnes of copper. This is based on an assumed copper price of US$2/lb compared to current copper prices in excess of US$4/lb;
>      Waste-to-ore strip ratio - 1.1 to 1.0;
>      Concentrate grade averaging 22%; and
>      Contained copper in concentrate averaging ~37,000 tonnes per annum.

Financial Outcomes

Forecast operating costs are tabulated below (life-of-mine averages).

  US$/lb
Site Operating Cash Cost 1.06
Transport, Smelting & Other 0.31
Total C1 Cash Cost 1.37
Depreciation, Amortisation & Provisions 0.20
Total C3 Cash Cost 1.57

A breakdown of the estimated capital expenditure required to restart copper production at the Rio Tinto Copper Mine is tabulated below.

  €M US$M
Repairs and initial plant improvements 45 56
Bonding for environmental and social guarantees 24 30
Counterparty settlements (on permitting) 13 17
Total 82 103

Financial modelling of these production and cost parameters results in the following key outcomes for the 9Mtpa base case:

At Cu price = US$4.50/lb US$3.50/lb US$2.50/lb
C3 Cost US$1.57/lb US$1.57/lb US$1.57/lb
At exchange rate = US$1.00=€0.80 US$1.00=€0.80 US$1.00=€0.80
Average annual operating cash flow €178M €122M €62M
Project IRR 132% 86% 41%
Project NPV at 10% €846M €523M €210M
Project NPV at 10% £0.77/share* £0.48/share* £0.19/share*

* On a fully diluted basis (935 million shares), with €1.00 = £0.85.

The current copper price is approximately US$4.35/lb. The above estimates include capital expenditure, bonding and the discharge of relevant pre-existing liens.

The Rio Tinto Copper Mine is forecast to generate very strong operating cash flows. It is notable that average annual operating cash flows at a copper price of US$3.00/lb are forecast to be greater than the capital expenditure required to restart the operation.

Funding

The estimated funding required to start copper production at the Rio Tinto Mine aggregates to approximately US$103 (€82) million. Finance facilities of US$120 million are planned to fulfil those requirements and provide on-going group working capital and standby capacity.

The recently completed equity raising has fulfilled the anticipated equity portion of the required financing. Other planned sources are, for the most part, loan facilities from product customers and from banks specialising in mining finance. Some parties are considering providing financial support for the restart in exchange for securing product off-take.

Planned Drilling Programs

EMED Mining recently announced its plans for drilling at the Rio Tinto Copper Mine during 2011:

>      Grade control drilling within the planned open pit to improve grade distribution data and verify the location of historical underground mine workings for detailed mine planning in preparation for commencement of mining;
>      Drilling within and adjacent to the planned open pit that is targeted at increasing current Mineral Resources as well as delineating additional Ore Reserves; and
>      Initial scout drilling down-plunge of historical underground mine workings that is aimed at exploring untested underground potential.

A 60,000 metre drilling program is planned to investigate these exploration targets with the following objectives:

>      Increasing resources and reserves at potential open-pit mining depths by filling in gaps within the current data and drilling the untested host rocks adjacent to the existing resources;
>      Defining initial resources that would be potentially mined by underground methods; and
>     Justifying an expansion of the processing plant to treat approximately 15Mtpa following completion of appropriate studies in due course.

Drilling of five different areas in and around the currently planned Cerro Colorado open pit is considered to have the exploration potential to increase the resources that are likely to be accessed via open-pit mining by 40% to 60% to approximately 285 to 325 million tonnes with an overall grade in a range of 0.45% to 0.50% copper.

These exploration targets were estimated following a review of the extensive historical data and geological interpretation. It is uncertain if further exploration will define additional resources as these exploration targets are conceptual in nature and further exploration work is required in order to define and report additional Mineral Resources in accordance with the JORC Code and the NI 43-101 Standard.

Drilling is planned to start in H1-2011, subject to the formal acknowledgement by the mining regulatory authorities of the Company's Administrative Standing.

Information Centre Opened for Local Community

During the quarter, EMED Mining opened an additional office in the town of Minas de Riotinto.

The aim of this information centre is to provide an open link between the Rio Tinto Copper Mine and the adjacent local communities. The centre will provide information on the Company's plans for the mine and provide a channel for any questions or concerns to be raised with the Company. 

Outlook

The Company has widespread political and administrative support and is backed by the local communities. 

The global shortage of copper underpins a strong long-term outlook for copper prices, which have recently been setting record prices and has traded at greater than US$4.00/lb since early December 2010. At current copper prices of approximately US$4.35/lb, the Rio Tinto Copper Mine's projected net operating cash flow is estimated to average US$212 (€170) million per year under the current "base case" development plan.

Significant potential has been identified to expand project life, annual production, or both. Drilling programs have been planned, in association with project engineering, to maximise the economic value-added.

Slovakia - Detva Gold Project

Detva Gold Project Permitting

EMED Mining is progressing towards the development of its 100%-owned Biely Vrch gold deposit, which contains Indicated Resources of 461,000 ounces (17.7 million tonnes at 0.81g/t gold) and Inferred Resources of 596,000 ounces (24.0 million tonnes at 0.77g/t gold).

In parallel with progressing the required permitting studies and approvals, EMED Mining is working towards reaching various agreements with local parties directly impacted by the development of Biely Vrch.

In June 2010, AMC Consultants (UK) Ltd completed an updated Scoping Study which takes into account community consultation and project refinements by EMED Mining.

The revised Scoping Study has confirmed the attractive economics of developing a mine at Biely Vrch based on a gold price of US$1,000/ounce (currently ~US$1,400/ounce).

The initial capital cost is estimated to be approximately US$64 million for a 3Mtpa heap-leach operation producing approximately 60,000 ounces of gold per annum at an estimated average cash cost of ±US$530/ounce.

The Scoping Study is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as ore reserves, and there is no certainty that the preliminary assessment will be realised.

These Scoping Study estimates are very preliminary in nature as the Biely Vrch gold deposit Mineral Resource estimate is based on relatively wide-spaced drilling. Approximately 1,000m of drilling is estimated to be required to upgrade the Biely Vrch Inferred Resource estimate to Indicated Resource status.

In November 2010, Behre Dolbear International Ltd completed the report entitled "Amended and Restated NI 43-101 Technical Report on the Biely Vrch Gold Deposit, Detva Licence Area in Slovakia" dated November 17, 2010, prepared by Richard Fletcher J.Sc., FAusIMM, MIMMM, C.Geol., E.Eng. and Julian Bennett, B.Sc.Eng., ARSM, FIMMM, C.Eng., each of whom is a "qualified person" and "independent" as those terms are defined in NI 43-101. This report was filed with various regulatory authorities as part of the process for EMED Mining's dual listing on the TSX and is available on SEDAR under the Company's profile at www.sedar.com as well as on the Company's website at www.emed-mining.com.

In September 2010, EMED Mining's Biely Vrch gold deposit was given "exclusive deposit" status, which is the first statutory step of the permitting process and gives priority to the land being used for mining activities over all other land uses.

In November 2010, the Biely Vrch gold deposit was granted a Protective Deposit Status, whilst EMED Slovakia was awarded a Corporate Authorisation for Mining Activities. Neither of these two advances in the permitting gives guarantees that mining activities will ultimately be granted, but both are essential preconditions for the application for a Mining Lease Area over Biely Vrch and are significant milestones on the permitting road map. 

The Company and its environmental consultants are preparing the Preliminary Environmental Impact Assessment for Biely Vrch.

EMED Mining Becomes a Signatory to International Cyanide Management Code

The International Cyanide Management Institute ("ICMI") announced on 21 January 2011 that it had accepted the application of EMED Mining to become a signatory to the International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold ("Code"). The Code is a voluntary industry program for companies involved in the production of gold using cyanide and companies manufacturing and transporting this cyanide.

By becoming a signatory, EMED Mining commits to follow the Code's Principles and implement its Standards of Practice, and to have verification audits of its operation conducted by independent third-party auditors within one year of its first receipt of cyanide, and every three years thereafter. Operations will be certified if found in compliance with the Code, and will be de-certified if ICMI determines that they no longer comply with the Code.

The Code was developed under the aegis of the United Nations Environment Programme by a multi-stakeholder Steering Committee. The Code is intended to complement an operation's existing obligation to comply with the applicable laws and regulations of the political jurisdiction in which the operation is located.

ICMI has been established to administer the Code, promote its adoption, evaluate its implementation, and manage the certification process. A detailed list of the operations covered by signatory companies' applications, along with the full text of the Code and its implementing and administrative documents, are available at www.cyanidecode.org.

Exhibition and International Conference

Following EMED Mining's initiative, the towns of Minas de Riotinto in Spain, Banska Stiavnica in Slovakia and Broken Hill in Australia agreed to collaborate in a cultural exchange. The first joint activity was an exhibition in Banska Stiavnica of paintings and photographs from these historical mining towns. The opening ceremony in Slovakia took place on 25 October 2010 and the Mayor of each town attended the event. The opening ceremony in Spain took place on 1 December 2010.

To view photo of the opening ceremony in Slovakia please visit: http://files.newswire.ca/908/BanskaStiavnica.pdf

An international conference on "Best Available Techniques for Gold Ore Processing and Environmental Protection" was held on 28-29 October 2010 in the historical mining town of Banska Stiavnica. This conference was organised by EMED Slovakia, Euromines, Zvolen University and Slovak Mining Chamber.

Portugal - Regua Tungsten Project  (Option to acquire 100%)

In September 2010, EMED Mining obtained an exclusive option to acquire the Regua Tungsten Deposit which is located 400km north of Lisbon and 95km east of Porto. The deposit has not been previously mined and is located close to infrastructure with good road access.

During the quarter, the following progress was made in respect of EMED Mining's exclusive option over the Regua Tungsten Deposit in Portugal:

>      Payment completed to acquire the option over Regua following approval by EMED Mining's shareholders on 22 November 2010;
>      Preliminary meetings with regulatory authorities have identified the matters which need to be evaluated and prioritised in order to assess the potential to develop Regua; and
>      Agreement reached with local landholder which provides the Company with access to the deposit for exploration and potential trial-mining of the deposit in due course.

During the option period EMED Mining intends to evaluate the exploration potential, audit the mineral resources, complete a scoping study and assess the prospects for permitting.

The Regua Tungsten Deposit consists of scheelite (CaW04) mineralisation. A resource estimate for Regua was reported in 2008 by ASX-listed Tamaya Resources (previous owner of the vendor, Iberian Resources Portugal Minerais Unipessoal LDA). However, EMED Mining is not yet in a position to issue a resource estimate under reporting standards NI 43-101 or JORC.

The Regua Tungsten Deposit remains open laterally and at depth. There are reasonable prospects that further drilling will extend the known mineralisation.

Tungsten has been classified as a critical raw material by the European Commission, due to the tightness of global supply. The Iberian Peninsula has historically been one of the major sources of tungsten supply outside of China.

KEFI Minerals  (20% owned by EMED Mining)

KEFI Minerals is the operator of an exploration joint venture in Turkey with Centerra Gold Inc of Canada and in Saudi Arabia with local construction and investment group ARTAR.

Corporate

Appointment to Management Team in Spain

Fernando Fernandez Torres has been appointed Vice-Chairman and Director of Institutional Relations and Business Development of EMED Mining-Spain.

Appointment of Joint AIM Broker

Fairfax I.S. PLC has been appointed joint AIM broker to the Company.

Fox Davies Capital Limited remains joint AIM broker to the Company.

Dual Listing on Toronto Stock Exchange

On 20 December 2010, EMED Mining commenced trading on the Toronto Stock Exchange ("TSX") under the symbol "EMD". The Company is now dual-listed on the TSX and on AIM, the London Stock Exchange market for international growth companies.

In conjunction with the TSX listing, EMED Mining raised a total of C$34.9 (~£21.9) million via an Initial Public Offering in Canada, a concurrent Private Placement in the UK and subsequent exercise of the over-allotment option granted to the Company's Canadian Agents. These equity raisings are summarised in the table below:

  Number of
Ordinary Shares
Issued
Issue Price
(C$)
Issue Price
(pence)
Gross Proceeds
(C$ millions)
Gross Proceeds
(£ millions)
Canadian IPO 180,970,000 0.135 ~8.5 24.4 ~15.3
UK Placement 60,126,386 ~0.135 8.5 ~8.1 5.1
Canadian Option 18,145,500 0.135 ~8.5 2.4 ~1.5
Total 259,241,886     34.9 21.9

Note: Currency conversion based on an exchange rate of C$1.00 = £0.6268

The Initial Public Offering in Canada was led by Canaccord Genuity Corp. with a syndicate of agents that included GMP Securities L.P. and Paradigm Capital Inc.

Fox-Davies Capital Limited and Fairfax I.S. PLC acted as brokers to the UK Offering.

The preliminary and final Canadian Prospectus, as well as NI 43-101 Technical Reports on the Rio Tinto Copper Mine and the Biely Vrch Gold Deposit, are available on SEDAR under the Company's profile at www.sedar.com as well as on the Company's website at http://www.emed-mining.com/site/table/technical-reports.

Capital Structure

As at 14 January 2011, EMED Mining had:

>      693.1 million shares issued
>      145.5 million shares to be potentially issued under the $8.5 million Convertible Loan facility provided by Resource Capital Funds and RMB Australia. This reflects the assumptions that the full amount is converted at the fixed conversion price of 4.13p into 145.5 million shares; and
>      95.9 million options and warrants in issue, with various exercise prices ranging from 4.1p to 22p and expiry dates ranging from 9 May 2011 to 3 May 2015.

A total of 934.6 million shares fully-diluted in accordance with the foregoing assumptions.

Major Shareholders

The EMED Mining ownership structure is dominated by a group of international mining industry specialists in mine development, finance, operation and marketing. The following parties hold, between them, 52% of the fully-diluted capital:

>      Resource Capital Funds ("RCF") - a large development equity fund based in Australia and the USA which invests exclusively in the mining industry;
>      RBC Asset Management - a leading Canadian funds management company;
>      RMB Holdings  - a mining financier and banker based in Australia, South Africa, UK and USA;
>      MRI Group - an international metal trading group based in Switzerland and China;
>      Standard Life - a leading UK funds management company;
>      OZ Minerals - a leading Australian copper and gold mining company which introduced EMED Mining to the Rio Tinto Mine opportunity; and
>      Directors and management - specialists who moved to Europe from Australia and the Americas in order to establish EMED Mining and its projects.

Qualified Persons for Reporting of Resources and Reserves

Information in this report as regards the Rio Tinto Mine that relates to Mineral Resource estimates is based on information compiled by Mr. Pat Stephenson, BSc (Geology) and Mr. Ron Cunneen, BSc (Geology), with Mr. Stephenson taking responsibility for the Mineral Resource estimates and Mr. Cunneen taking responsibility for the data on which the estimates are based.

Mr. Stephenson is Regional Manager, Vancouver and Principal Geologist with AMC Mining Consultants (Canada) Ltd and a full-time employee of that company. He is a Fellow of The Australasian Institute of Mining and Metallurgy.

Mr. Cunneen is Head of Exploration for EMED Mining and a full-time employee of that company. He is a Member of The Australian Institute of Geoscientists.

Information in this report as regards the Rio Tinto Mine that relates to Ore Reserve estimates is based on information compiled by Mr. Andy Robb, BSc (Mining Engineering). Mr. Robb is Principal Mining Consultant with AMC Consultants and a full-time employee of that company. He is a Member of the Australasian Institute of Mining and Metallurgy.

Mr. Stephenson, Mr. Cunneen and Mr. Robb have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activities which they are undertaking to qualify as "Competent Persons" as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" ("JORC Code") and "Qualified Persons" as defined in the "National Instrument 43-101 of the Canadian Securities Administrators" ("NI 43-101") and "CIM Definition Standards For Mineral Resources and Mineral Reserves" of December 2005 as prepared by the CIM Standing Committee on Reserve Definitions of the Canadian Institute of Mining.

Mr. Stephenson, Mr. Cunneen and Mr. Robb consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

References in this report as regards the Mineral Resources or exploration results and potential in Slovakia, Cyprus or elsewhere have been approved for release by Mr. Ron Cunneen.

Cautionary Notes

This announcement contains "forward looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the future price of metals, the estimation of ore reserves and resources, the conversion of estimated resources into reserves, the realisation of ore reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Often, but not always, forward looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Accordingly, readers should not place undue reliance on forward looking statements.

Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; the future costs of capital to the company; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, terrorist attacks, insurrection or war; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in this announcement.

Although the Company  has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward looking statements contained herein are made as of the date of this announcement and the Company disclaims any obligation to update any forward looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.

Corporate Directory

Directors     Non-Executive Chairman - Ronnie Beevor
Managing Director - Harry Anagnostaras-Adams
Finance Director - John Leach
Non-Executive Directors - Ross Bhappu, Roger Davey, Ashwath Mehra
Nominated Adviser     RFC Corporate Finance - Stuart Laing (+61 8 9480 2500)
Brokers     Fox-Davies Capital Limited - Simon Leathers (+44 203 463 5022)
Fairfax I.S. PLC - Ewan Leggat/Katy Birkin (+44 207 598 5368)
Canaccord Genuity - Craig Warren (+1 416 869 7316)
Public Relations     Bishopsgate Communications - Michael Kinirons (+44 207 562 3350)
Share Registrar     Computershare Investor Services
Issued Capital     693.1 million shares on issue
95.9 million options and warrants on issue
934.6 million shares on issue on a fully-diluted based on the assumption
that convertible loans principal and interest is paid via issuing shares.
Significant
Shareholders
(fully diluted)
    >     10% Management and Board (mainly Australian citizens)
>     17% Resource Capital Funds (Australia and USA)
>     11% RBC Asset Management (Canada)
>     7%   RMB Australia Holdings Limited (Australia and elsewhere)
>     4%   MRI Group (Switzerland)
>     3%   OZ Minerals (Australia

To view diagram of EMED Mining Share Price on AIM in Pence please visit: http://files.newswire.ca/908/EMEDshare.pdf

EMED Mining is listed on AIM (Code: EMED) and the TSX (Code:EMD)

SOURCE EMED Mining Public Limited

For further information:

Enquiries:
Investors/Media: Harry Anagnostaras-Adams +357 9945 7843, Roger Howe +61 405 419 139
In North America : Andreas Curkovic +1 416-577-9927
General: Cyprus office: +357 2244 2705, Email: info@emed-mining.com

Organization Profile

EMED Mining Public Limited

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