In addition, a resolution was passed at the meeting confirming the Shareholders’ Rights Plan with respect to the Shareholder’s Rights Plan Agreement made between the Company and Computershare Investor Services Inc., as rights agent, dated December 2, 2010, and filed with the TSX Venture Exchange. 

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

Mr. Larry Reaugh, President and Chief Executive Officer of American Manganese Inc. (“American Manganese” or the “Company”), (TSX.V:  AMY; Pink Sheets:  AMYZF; Frankfurt: 2AM), is pleased to report the recent progress advancing the Company’s Artillery Peak Manganese Project as follows: 

Pilot Plant Testing Successfully Completed

The pilot plant testing program performed by Kemetco Research Inc. (Kemetco) has been successfully completed.  The work has confirmed the technical viability of the Company’s patent pending hydrometallurgical manganese extraction and electro-winning circuit on a semi-continuous operation basis of the overall flow sheet.  The process is designed to recover manganese from lower grade manganese resources in an energy efficient manner with low water use, thus providing significant environmental benefits compared to the conventional recovery process which is energy intensive based on high grade resources. 

The pilot plant treated material from the Company’s Artillery Peak resource situated at Mojave County, Arizona.  Operation of the pilot plant produced high purity electrolytic manganese metal (EMM) of greater than 99% purity.  Chilling the mixed sulfate/dithionate solution produced by the intermediate precipitation of manganese from the pregnant leach solution produced sodium sulfate / dithionate crystals that were further processed to produce anhydrous sodium sulfate.  The mother solution from the chilling circuit was shown to have salt concentrations that were suitable for feed in a nanofiltration circuit.  Operation of the nanofiltration unit using a commercially available membrane achieved 97% rejection of sodium sulfate and 95% rejection of sodium dithionate, thus producing clean water suitable for reuse in the process.

Solid/liquid separation testing conducted by Pocock Industrial showed that practical dewatering of the tailings can be achieved with a paste type thickener and pressure filtration following the multistage Counter Current Decantation (CCD) stages.  Final tailings dewatered to a stackable low water content (33.6%) was achieved.  Environmental testing confirmed that the solid residues are not acid generating.

Mass and energy balances on the anhydrous sodium sulfate and water recovery circuit were provided by Swenson Technologies Inc.  As a result of their study, a more energy efficient sodium sulfate crystallization process option was identified which may provide further significant reductions in energy requirements for this circuit.  Further work on this process option will be conducted in the feasibility stage.

The new process developed by Kemetco Research Inc., on behalf of American Manganese Inc., is shown to be significantly more energy and water efficient than previous work conducted by the US Bureau of Mines (USBM) some 30 to 60 years ago on the same resource material.  In addition, the use of modern commercial equipment in a unique configuration has removed a significant amount of technical risk for the new process.

Kemetco Research is preparing the final report with data being forwarded to Tetra-Tech Engineering.  Photographs taken during the course of the pilot trial can be view at http://www.amydata.com/data/Powerpoint/Pilot%20Plant%20Photos%20December%2020%202011.pdf

Authorization for Storm Water Discharge Received from ADEQ

On November 21, 2011, the Company received authorization to discharge storm water associated with its industrial activities under the terms and conditions of Arizona Department of Environmental Quality’s AZPDES STORM WATER MULTI-SECTOR GENERAL PERMIT(S), MSGP for its Artillery Peak Manganese Project located in Mojave County, Arizona.  “We are pleased with the receipt of the authorization as our application was handled professionally and promptly, and represents our first step through Arizona’s regulatory approvals process”, says Mr. Larry Reaugh.

Strong Electrolytic Manganese Market Forecast by CPM Group

CPM Group (CPM) delivered, on December 5, 2011, an in-depth electrolytic manganese market study for the Company’s Artillery Peak Manganese Project located in Mojave County, Arizona. 

A few of the most salient report highlights include:

• The worldwide demand for EMM is forecast to grow from about 1.5 million tonnes today to about 2.8 million tonnes by 2021.
• China’s share of worldwide EMM demand is forecast to rise from 87% to 89% over the 10 year forecast period.
• China’s share of EMM production is project to fall from 98% currently to 89.4% in 2021.  By 2018 it is likely that China’s demand will exceed its supply capability, and China would then become a net importer of EMM.
• Chinese industry consolidation/rationalization combined with the rising EMM production cost structure and depleting and degrading manganese resources, provides the basis for the level of price support required for building new EMM capacity outside of China.
• “Over the next 10 years real electrolytic manganese metal prices are forecast to average $1.98 per pound, reaching an annual high of $2.40 in 2021. This is nearly double the annual average price over the last 10 years.”

Quoting directly from the report:  “Between 2012 and 2021 real EMM prices are forecast to average nearly $2 per pound, which will support project development activities and provide incentive pricing for bringing new projects online to meet continued growth in demand.”  Mr. Reaugh goes on to say, “The depth and thoroughness of CPM’s research establishes a solid benchmark for understanding the EMM market, and why the time for building the Artillery Peak Manganese Project has arrived.”

The current National Instrument 43-101-compliant resource estimate of the Artillery Peak manganese deposit includes an indicated resource of about 220.9 million tonnes grading 2.84 per cent manganese (13.83 billion pounds contained manganese), and an inferred resource of about 56.3 million tonnes grading 2.84 per cent manganese (3.53 billion pounds contained manganese).

Mr. Reaugh says; “Kemetco’s and CPM’s contributions are vital technical components of the previously announced on-going preliminary feasibility study. The preliminary feasibility report commission by the Company is now scheduled for delivery around mid-February of next year.”

Production of Electrolytic Manganese Dioxide (EMD)

Kemetco expects to begin production of EMD by mid-January.  The EMD produced will be used to produce a lithiated manganese powder to be used in the battery industry.

About Kemetco Research Inc.

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

About CPM Group (www.cpmgroup.com)

CPM Group is the world’s premier commodities research and consulting company.  The firm’s primary focus is on precious, industrial, and specialty metals, in addition to undertaking research and analysis across all commodities markets.  In the ferroalloy industry CPM Group has developed a top-rated expertise in molybdenum, vanadium, manganese and chromium, as well as other minor metals.  CPM Group provides a suite of research and consulting services related to the financial management of commodities exposure, including fundamental market research and analysis, consulting and advisory services, commodities management and asset management services, and corporate finance advisory.  Founded in 1986, CPM Group is known for its research and analysis of the metals markets, its overall economic analysis of commodities markets, and its expertise in financial engineering, using derivatives to structure optimized positions for commercial hedgers and institutional and high net worth individual investors.

About Manganese

China controls electrolytic manganese production supplying and producing 98% of the world’s needs (3 billion pounds per year).

There is no substitute for manganese in steel (total manganese market greater than 33 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 U.S. production. EMM’s greatest uses are the upgrading of specialty steel (74%), and the manufacture of aluminum alloys (12%) and electronics (2%).

Electrolytic manganese dioxide (EMD) for the battery industry is expected to be the fastest-growing segment of the manganese market.

China has a 20% export duty on EMM and the U.S. has a 14% import duty.

The current world price for electrolytic manganese metal is about $1.45 per pound, while the U.S. price is about $1.84 per pound.

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 John W. Fisher, PEng, a qualified person pursuant to National Instrument 43-101.

On behalf of Management

AMERICAN MANGANESE INC.

Larry W. Reaugh
President and Chief Executive Officer

A few of the most salient report highlights include:

• The worldwide demand for EMM is forecast to grow from about 1.5 million tonnes today to about 2.8 million tonnes by 2021.
• China’s share of worldwide EMM demand is forecast to rise from 87% to 89% over the 10 year forecast period.
• China’s share of EMM production is projected to fall from 98% currently to 89.4% in 2021.  By 2018 it is likely that China’s demand will exceed its supply capability, and China would then become a net importer of EMM.
• Chinese industry consolidation/rationalization combined with the rising EMM production cost structure and depleting and degrading manganese resources, provides the basis for the level of price support required for building new EMM capacity outside of China.
•  “Over the next 10 years real electrolytic manganese metal prices are forecast to average $1.98 per pound, reaching an annual high of $2.40 in 2021. This is nearly double the annual average price over the last 10 years.”

Click here to view the Executive Summary of the report

Quoting directly from the report:  “Between 2012 and 2021 real EMM prices are forecast to average nearly $2 per pound, which will support project development activities and provide incentive pricing for bringing new projects online to meet continued growth in demand.”  Mr. Reaugh goes on to say, “The depth and thoroughness of CPM’s research establishes a solid benchmark for understanding the EMM market, and why the time for building the Artillery Peak Manganese Project has arrived.”

The current National Instrument 43-101-compliant resource estimate of the Artillery Peak manganese deposit includes an indicated resource of about 220.9 million tonnes grading 2.84 per cent manganese (13.83 billion pounds contained manganese), and an inferred resource of about 56.3 million tonnes grading 2.84 per cent manganese (3.53 billion pounds contained manganese).  The preliminary assessment announced on August 9, 2010 showed that the conceptual project should be economically robust and could potentially become the world’s lowest cost producer of electrolytic manganese metal. 

The pilot plan work at Kemtco Research Inc. is nearing completion.  “This proof of concept” testing has confirmed viability of all stages of the conceptual process shown and described in earlier press releases.

About CPM Group (www.cpmgroup.com)

CPM Group is the world’s premier commodities research and consulting company.  The firm’s primary focus is on precious, industrial, and specialty metals, in addition to undertaking research and analysis across all commodities markets.  In the ferroalloy industry CPM Group has developed a top-rated expertise in molybdenum, vanadium, manganese and chromium, as well as other minor metals.  CPM Group provides a suite of research and consulting services related to the financial management of commodities exposure, including fundamental market research and analysis, consulting and advisory services, commodities management and asset management services, and corporate finance advisory.  Founded in 1986, CPM Group is known for its research and analysis of the metals markets, its overall economic analysis of commodities markets, and its expertise in financial engineering, using derivatives to structure optimized positions for commercial hedgers and institutional and high net worth individual investors.”

About Manganese

China controls electrolytic manganese production supplying and producing 98% of the world’s needs (3 billion pounds per year).

There is no substitute for manganese in steel (total manganese market greater than 33 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 U.S. production. EMM’s greatest uses are the upgrading of specialty steel (74%), and the manufacture of aluminum alloys (12%) and electronics (2%).

Electrolytic manganese dioxide (EMD) for the battery industry is expected to be the fastest-growing segment of the manganese market.

China has a 20% export duty on EMM and the U.S. has a 14% import duty.

The current world price for electrolytic manganese metal is about $1.45 per pound, while the U.S. price is about $1.84 per pound.

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 John W. Fisher, PEng, a qualified person pursuant to National Instrument 43-101.

On behalf of Management

AMERICAN MANGANESE INC.

Larry W. Reaugh
President and Chief Executive Officer

Highlights of the Report Include:

• China electrolytic manganese metal (EMM) production is to be consolidated;
• China to find balance of EMM production, protect environment and depleting resources;
• China leading in steel and EMM production;
• EMM production costs are rising in China;
• Necessity of EMM production in western countries;

Click here to view Report

Mr. Reaugh states that “The report confirms that Chinese EMM production capacity will likely decline to between 1.3 and 1.5 million tonnes as a direct result of imposed industry consolidation; while the demand for EMM metal could increase from about 1.3 million tonnes today to over 2.6 million tonnes by 2015.  The increased demand appears to be driven by the rapidly growing domestic use of high quality specialty steels and 200 Series stainless steel products.  The report also highlights that the era of low cost Chinese production is over due to:  Depleting resources and declining head grades; rapidly rising labour and energy costs; and increased capital intensity for new Chinese projects to meet much higher regulatory compliance thresholds for increased energy efficiency, safety and environmental protection.”

Mr. Reaugh goes on to say:  “The Artillery Peak Project is well positioned with its large resource, and potentially much lower EMM production cost, to capitalize on this emerging opportunity. The Company is financially strong with $5 million in the bank, more than enough to complete the ongoing pilot plant test, pre-feasibility study and environmental and regulatory permitting as well as begin the final feasibility report.” 

Pilot Plant and Pre-feasibility Update

The Company expects to receive an update shortly from Kemetco regarding the results of the final three tests of the nano-filtration, chilling unit, and electroplating and metal production unit operations. 

These results will be incorporated into the pre-feasibility study being conducted by Wardrop Engineering (A Tetra Tech Company) which is not expected until mid-February, 2012.

The current NI 43-101 compliant resource estimate of the Artillery Peak Manganese deposit includes an Indicated resource of about 220.9 million tonnes grading 2.84% Mn (13.83 billion lbs contained Mn), and an Inferred resource of about 56.3 million tonnes grading 2.84 % Mn (3.53 billion lbs contained Mn).

About JF ZHANG ASSOCIATES INC.

JF ZHANG ASSOCIATES INC. is a Vancouver-based research and advisory firm with particular focus on energy, mining, and agricultural business markets in China.  Managed by a group of highly qualified and experienced professionals with diversified backgrounds and track records, it conducts research for their clients and helps them resolve the most important strategic issues faced in understanding China’s markets.  With its broad network, on-the-ground and well-connected affiliates, and more than 50-years accumulated transactional experiences in these sectors, we provide investment insight to foreign clients regarding Chinese dominated markets and help Chinese companies to access opportunities outside of China.

For more information about JF ZHANG ASSOCIATES, please visit: www.JFzhang.com.

About Manganese

China controls electrolytic manganese production (EMM) supplying and producing 98.44% of the world’s needs (3.0 billion pounds per year).

There is no substitute for manganese in steel (total manganese market greater than 31 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%).

Electrolytic manganese dioxide (EMD) for the battery industry is expected to be the fastest growing segment of the manganese market.

China has a 20% export duty on EMM and the US has a 14% import duty.

The current world price for Electrolytic Manganese Metal is about $1.45/lb, while the US price is about $1.84/lb. 

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.  The Company is well financed to execute its contemplated work programs.

This release has been reviewed by 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

Mr. Larry W. Reaugh, President and Chief Executive Officer of American Manganese Inc. (TSX.V: AMY; Pink Sheets: AMYZF; Frankfurt: 2AM) (“American Manganese” or the “Company”), reports that subsequent to the announcement of resource estimates for its Artillery Peak Project in a news release dated September 8, 2011, N. Tribe & Associates Ltd. has re-interpreted the resources on the outlying portions of the mineralized zones and has adjusted the resource estimates in those areas accordingly.  The affected resources in the Loves, Hurley, and Planche zones are located between 1 and 3 miles south of the zone of immediate economic interest situated along the northeast slope of Manganese Mesa. The adjusted resource estimates are reported in the Company’s National Instrument 43-101 compliant report entitled “Mineral Resource Evaluation Report on the Artillery Mountain Manganese Property, Mojave County, Arizona, USA”, (the “Technical Report”) which was filed on SEDAR on October 19, 2011.

The adjusted resource estimates contained in the Technical Report and the now-outdated resource estimates in the September 8, 2011 news release are compared below:

The 2011 drilling program included 84 reverse circulation drill holes totaling 10,607 meters (34,800 feet) on Manganese Mesa, Burro, and Shannon patented claims of the property.  Samples were prepared by ALS Chemex in Sparks Nevada and the assaying was performed by ALS Chemex in North Vancouver, B.C.

This has resulted in an upgrading of a large proportion of the resource from inferred to indicated.  The step-out drilling has resulted in a 39% increase of the overall tonnage and a 12% increase in the contained pounds of manganese.

Mr. Reaugh states:  “While I am naturally disappointed with having to reinterpret the geology and deal with the confusion this can generate; it is more important to get things right.  The reduction of about 1.086 billion lbs. of manganese resource from these outlying areas does not impact the development plans for the project.  I would reiterate that the resources in the primary zone of economic interest, located within patented claims along the northeast slope of Manganese Mesa, have not changed.   Moreover, these results still support our belief in the character and quality of the Artillery Peak Deposit, and the need to explore the balance of the Company’s extensive land position in a systematic professional manner to further expand the resources.”

Pilot Plant

Final results from the pilot plant testing are expected within the next three weeks.

About Manganese

China controls electrolytic manganese production (EMM) supplying and producing 98.44% of the world’s needs (3.0 billion pounds per year).

There is no substitute for manganese in steel (total manganese market greater than 31 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%).

Electrolytic manganese dioxide (EMD) for the battery industry is expected to be the fastest growing segment of the manganese market.

China has a 20% export duty on EMM and the US has a 14% import duty; (US Price $1.81/lb) the current world price for Electrolytic Manganese Metal is about $1.54/lb.  Manganese resources are declining in China especially carbonate ores for production of EMM, forcing Chinese companies to seek production offshore.

China is currently shutting down production of EMM in several provinces for environmental reasons.

China production of EMM predicted to fall 500 – 700,000 T’s out of 1.4 million T’s in next 3 – 5 years.

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.  The Company is well financed to execute its contemplated work programs.

This release has been reviewed by Norman L. Tribe, 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

Operation of the pilot plant (see 360° Rotoshoot) commenced on August 18, 2011 under the direction of Dr. Gie Tan, Director of Hydrometallurgy at Kemetco Research Inc.  Operational assistance of the solid/liquid separation section of the pilot plant was provided by Pocock Industrial Inc. (a specialist in solid/liquid separation).

The pilot plant was initially operated in semi-continuous mode to test several different operating conditions such as particle size in the leach stage, flocculent type and dose, and general operating conditions of the thickener and counter current decantation (CCD) circuit for solid/liquid separation.  The pilot plant was then operated in continuous mode over 72 hours to test the performance of the leach and solid/liquid separation in steady state conditions.

Initial results of the leach and solid/liquid separation pilot tests are excellent; for instance rates of extraction of 92.7% manganese recovered was achieved from coarse feed material (minus 6.35 mm) in 2 hours.  Previous work done by the US Bureau of Mines (USBM) on the same resource material from Artillery Peak, found this separation to be challenging because of the clay content (montmorillonite) and lack of polyelectrolyte flocculent.  Initial expectation of the pilot plant was to process 3 to 5 kg of resource material per hour.  In the continuous pilot plant run, the average processing rate was 20.8 kg per hour, which greatly exceeded expectation.  Success of the pilot plant operation has removed a significant amount of technical risk for the flow sheet.

When operating in continuous mode with fine feed material, the pilot plant demonstrated that effective solid/liquid separation can be achieved with a conventional thickener and CCD circuit.  A clear pregnant leach solution was recovered from the thickener with minimal use of flocculent.  Underflow densities of 40 to 55% w/w solid tailings were achieved which was better than expected.  Wash ratios of the tailings were observed to be 3.5:1 v/v per stage.  While representative samples have been shipped out to external laboratories for confirmatory assessments, this wash ratio would indicate that washed tailings with minimal soluble loss can be achieved with a reasonable number of CCD stages.

The pilot plant has generated reliable data for assessment by Wardrop Engineering Inc. in a NI 43-101 Preliminary Feasibility Study scheduled for completion in the fourth quarter of 2011.

This successful confirmation of leaching and solid/liquid separation is key to development of the entire process.   Purification of the pregnant leach solution, production of manganese carbonate and conversion to sulphate for the final electrolyte production of manganese metal are known processes.  These stages of testing are being completed in on-going work expected to be completed within the next 6 weeks.  

About Manganese

China controls electrolytic manganese production (EMM) supplying and producing 98.44% of the world’s needs (3.0 billion pounds per year).

There is no substitute for manganese in steel (total manganese market greater than 31 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%).

Electrolytic manganese dioxide (EMD) for the battery industry is expected to be the fastest growing segment of the manganese market.

China has a 20% export duty on EMM and the US has a 14% import duty; (US Price $1.81/lb) the current world price for Electrolytic Manganese Metal is about $1.54/lb.  Manganese resources are declining in China especially carbonate ores for production of EMM, forcing Chinese companies to seek production offshore.

China is currently shutting down production of EMM in several provinces for environmental reasons.

China production of EMM predicted to fall 500 – 700,000 T’s out of 1.4 million T’s in next 3 – 5 years.

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.  The Company is well financed to execute its contemplated work programs.

This release has been reviewed by 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

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. 

American Manganese has granted 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 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.  The Company is well financed to execute its contemplated work programs.

On behalf of Management

AMERICAN MANGANESE INC.

Larry W. Reaugh
President and Chief Executive Officer

N. Tribe & Associates Ltd. prepared the up-to-date NI 43-101 compliant Resource Estimate and the results are summarized below:

Samples were prepared by ALS Chemex in Sparks Nevada and the assaying was performed by ALS Chemex in North Vancouver, B.C.

The new NI 43-101 Resource Estimate will be filed with the regulators on SEDAR within 45 days of this news release.

The previous NI 43-101 compliant resource estimate at a 0.9% cut-off grade is summarized below:

Mr. Reaugh states:  “I am extremely pleased with the results.  Not only has the amount of contained Mn metal increased by 19%, but also the amount of the metal resource in the Indicated category has increased by 123% from the previous estimate.  These results support our belief in the character and quality of the Artillery Peak Deposit, and there is a lot more ground to explore to expand the resource further.”

Mr. Reaugh also states that:  “the Chinese Government has been cracking down on smuggling of EMM through Vietnam thereby creating shortages and price increases in the European market.”

About Manganese

China controls electrolytic manganese production (EMM) supplying and producing 98.44% of the world’s needs (3.0 billion pounds per year).

There is no substitute for manganese in steel (total manganese market greater than 31 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%).

Electrolytic manganese dioxide (EMD) for the battery industry is expected to be the fastest growing segment of the manganese market.

China has a 20% export duty on EMM and the US has a 14% import duty; (US Price $1.81/lb) the current world price for Electrolytic Manganese Metal is about $1.54/lb.  Manganese resources are declining in China especially carbonate ores for production of EMM, forcing Chinese companies to seek production offshore.

China is currently shutting down production of EMM in several provinces for environmental reasons.

China production of EMM predicted to fall 500 – 700,000 T’s out of 1.4 million T’s in next 3 – 5 years.

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.  The Company is well financed to execute its contemplated work programs.

This release has been reviewed by Norman L. Tribe, 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

Mr. Reaugh states that “The process combines a series of conventional technologies in a unique configuration that is designed to be energy and water efficient.  The continuous bench scale pilot plant test program that is currently underway is corroborating the conceptual process previously described in the report, “The Recovery of Manganese from Low Grade Resources:  Bench Scale Test Program Completed”, prepared by Kemetco Research Inc. of Richmond, BC.  This intellectual property is one of the cornerstones of the Company’s business plan.”

Mr. Reaugh goes on to say:  “The Company is financially strong with $7 million in the bank, more than enough to complete the ongoing pilot plant test, pre-feasibility study and environmental and regulatory permitting as well as begin the final feasibility report.”

The current NI 43-101 compliant resource estimate of the Artillery Peak Manganese deposit includes an Indicated resource of about 92.8 million tonnes grading 3.27% Mn (6.7 billion lbs contained Mn), and an Inferred resource of about 107.2 million tonnes grading 3.76% Mn (8.9 billion lbs contained Mn).

About Kemetco Research Inc.

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

About Manganese

China controls electrolytic manganese production (EMM) supplying and producing 98.44% of the world’s needs (3.0 billion pounds per year).

There is no substitute for manganese in steel (total manganese market greater than 31 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%).

Electrolytic manganese dioxide (EMD) for the battery industry is expected to be the fastest growing segment of the manganese market.

China has a 20% export duty on EMM and the US has a 14% import duty; (US Price $1.81/lb) the current world price for Electrolytic Manganese Metal is about $1.54/lb.  Manganese resources are declining in China especially carbonate ores for production of EMM, forcing Chinese companies to seek production offshore.

China is currently shutting down production of EMM in several provinces for environmental reasons.

China production of EMM predicted to fall 500 – 700,000 T’s out of 1.4 million T’s in next 3 – 5 years.

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.  The Company is well financed to execute its contemplated work programs.

This release has been reviewed by 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

The paper which was presented at SME’s Denver meeting March 2, 2011 shows details of mass and energy balances for the complete process with specific references to the significant reductions in energy use and environmental impact achieved when compared with existing conventional technology used to produce high grade electrolytic manganese from resources which are an order of magnitude higher in manganese.

The conceptual process has passed scrutiny by experts on the peer review panel and has now advanced to pilot plant stage confirmation.

The paper is a joint effort by Kemetco Research Inc. and American Manganese Inc.  The proprietary technology is subject to U.S. and PCT patent applications.  American Manganese continues to pursue efforts to progress the development to commercial operations thru continuing work contracted to Kemetco Research Inc.

About Manganese

China controls electrolytic manganese production (EMM) supplying and producing 98.44% of the world’s needs (3.0 billion pounds per year).

There is no substitute for manganese in steel (total manganese market greater than 31 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%).

Electrolytic manganese dioxide (EMD) for the battery industry is expected to be the fastest growing segment of the manganese market.

China has a 20% export duty on EMM and the US has a 14% import duty; (US Price $1.81/lb) the current world price for Electrolytic Manganese Metal is about $1.54/lb.  Manganese resources are declining in China especially carbonate ores for production of EMM, forcing Chinese companies to seek production offshore.

China is currently shutting down production of EMM in several provinces for environmental reasons.

China production of EMM predicted to fall 500 – 700,000 T’s out of 1.4 million T’s in next 3 – 5 years.

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.  The Company is well financed ($7 million) to execute its contemplated work programs.

This release has been reviewed by 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