American Manganese Inc to Receive Fourth Contribution Through NRC-IRAP

Added June 24th, 2011 – Vancouver, British Columbia


Mr. Larry Reaugh, President and Chief Executive Officer of American Manganese Inc. (“American Manganese” or the “Company”), (TSX.V:  AMY; Pink Sheets:  AMYZF), is pleased to announce it has signed a fourth Contribution Agreement with the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP) to continue the successful development of a hydrometallurgical process to extract and recover high purity manganese from lower grade domestic resources within North America.  The success of that program has led to the development of a proprietary process that is the subject of an application for patent protection.  Extensive studies and tests were conducted by the U.S. Bureau of Mines (U.S.B.M.).  These data provide a basis for the present work.  The recent developments have resulted in a treatment strategy that involves an innovative application of modern commercial process equipment.  The result will be a more robust, complete flow sheet with reduced operating costs to recover manganese from lower grade resources.

In addition to financial support, NRC-IRAP will provide a range of both technical and business oriented advisory services.

The Company is working with Kemetco Research Inc. of Richmond B.C. (“Kemetco”) to continue the development of a hydrometallurgical process which will yield high purity manganese metal and/or manganese dioxide at low cost from North American known resources.

About Manganese

China controls electrolytic manganese production (EMM) supplying and producing 97.44% of the world’s needs (3.1 billion pounds per year).

There is no substitute for manganese in steel (total manganese market greater than 30 billion pounds per year, fourth largest traded metal).

Manganese is the most critical metal at risk to supply and restriction in the United States as there is no US production. EMM’s greatest uses are the upgrading of specialty steel (47%), and the manufacture of aluminum alloys (32%) and electronics (14%).

China has a 20% export duty on EMM and the US has a 14% import duty; (US Price $1.80/lb) the current world price for Electrolytic Manganese Metal is about $1.53/lb.  Manganese resources are declining in China especially carbonate ores for production of EMM, forcing Chinese companies to seek production offshore.

The overall manganese market grew at 8% per year to 30 billion pounds up to 2008.  EMM market grew at 26% per year from 2003 – 2008 to 2.6 billion pounds per year.

About Kemetco Research:

Kemetco Research is a privately owned contract research and development company specializing in extractive metallurgy, chemical processing and specialty chemical analysis.  Kemetco was formed after the acquisition of the industrial process division of B.C. Research.  B.C. Research had been in operation for over 60 years as a research and development contractor in British Columbia, Canada.

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.

This release has been reviewed by Mr. John W. Fisher, P. Eng, a qualified person pursuant to National Instrument 43-101.

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.