American Manganese Inc Enters into Letter of Intent on their Lonnie/Virgil Rare Earth and Rare Metal Property

Added December 2nd, 2010 – Vancouver, British Columbia


American Manganese Inc. (“American Manganese” or the “Company”), (TSX.V:  AMY; Pink Sheets:  AMYZF), announces it has signed a non-binding letter of intent dated November 29, 2010 (the “LOI”) with Rara Terra Capital Corp. (TSX.V:  RTX.P) (“Rara Terra”) which could be granted an option to acquire 60% of the right, title and interest of American Manganese in the Lonnie property (the “Lonnie Property” or the “Property”), a niobium and rare earth property located in the Omineca Mining Division of British Columbia, as more particularly described below (the “Transaction”).  The Transaction is subject to the approval of the TSX Venture Exchange (the “Exchange”).

The Lonnie Property

The Lonnie Property consists of 8 mineral claims, totalling 1,605 hectares, and is located on Granite Creek, south-east of Manson Creek in North Central British Columbia, approximately three hours drive north of Fort St. James.  The Property is more specifically situated at latitude 55°, longitude 124°23”E (UTM 413,300E, 6,171,300N) on NTS Map Sheet 93N/9W.  Altitude on the Property varies between 3,200 feet and 4,000 feet.  While historically known for its showings of niobium, the Lonnie Property has more recently become of interest for its rare earth elements showings in an area (Rocky Mountain Rare Metal Belt) where several exploration programs have been ongoing.

The Lonnie Property has two showings defined by trenching (1970’s) with a combined strike length of 620 meters (2,040 ft) with widths up to 40 meters grading 0.20% Niobium.  A 56 meter chip sample on one of the claims assayed 0.05% lanthanum, 0.03% neodymium and 0.15% Titanium. 

Summary of the Proposed Definitive Agreement

The parties to the LOI will use their best efforts to reach a definitive agreement whereby American Manganese would grant Rara Terra an option to acquire 60% in the Lonnie Property by paying American Manganese $60,000 cash, issuing 285,000 of its common shares and incurring $500,000 in exploration expenditures over the three year term of the option.

About Rare Earths

China dominates rare earths production (93%) and consumption.  China has placed quotas on the export of rare earths resulting in a panic by end users, increased exploration and company’s such as the Boeing Company contracting out their technology to aid in exploration of rare earth deposits.  The critical situation in rare earths was first brought to public attention by Keith Bradsher, New York Times correspondent, in August 2009.  Neodymium is identified as one of the more critical rare earths.

About Rara Terra

Rara Terra was incorporated under the provisions of the Business Corporations Act (British Columbia) on December 17, 2009, and is a “capital pool company” as defined in the CPC Policy.  The current directors of the Company are Fraser Atkinson, Alexander Helmel, Roger Flowerdew, John Veltheer and Darrell Elliott.  To date, Rara Terra has been engaged in the business of identifying a QT.

About American Manganese Inc:

American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming the lowest cost producer of electrolytic manganese from its Arizona Manganese Project.

On behalf of Management

AMERICAN MANGANESE INC.

Larry W. Reaugh
President and Chief Executive Officer

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The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the Toronto Stock Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.