The total amount raised pursuant to the private placement was $150,000 over two tranches.  The first tranche consisted of 2,500,000 units for $125,000 and the 2^nd tranche consisted of 500,000 units for $25,000 at a price of $0.05 per unit (“Units”).

Each Unit is comprised of one common share in the capital of the Company (a “Share”) plus a two year share purchase warrant (a “Warrant”).  Each Warrant entitles the holder to purchase one Share at a price of $0.10 two years from the date of issuance, subject to accelerated exercise if the Shares trade at $0.15 per Share for 20 consecutive days.

All of the securities issued pursuant to the private placement have a hold period expiring four months and one day after the closing dated.

The proceeds of this private placement will be used towards general working capital.  The Company has paid finder’s fees totaling $14,250 in connection with the private placement.

About American Manganese Inc.

American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming a producer of high purity EMD and CMD for the battery industry.

On behalf of Management

AMERICAN MANGANESE INC.

Larry W. Reaugh
President and Chief Executive Officer

MNP LLP, Chartered Accountants were appointed as auditors of the Company and the proposed amendments to the Company’s existing Stock Option Plan were approved.

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

The patent application describes key details in which manganese can be recovered from a low grade resource with the following key advantages:

• Low energy requirement.
• Low water use.
• Robust process with a unique assembly of commercially available equipment.
• The hydrometallurgical process developed by the Company is capable of producing high purity electrolytic manganese dioxide (EMD) and chemical manganese dioxide (CMD) critical for improving performance and safety of high tech lithium ion batteries.  The invention by-passes steps known to introduce metallic impurities when producing these materials using conventional mining processes.  Norman Chow, President of Kemetco Research states, “Conventional mining processes used to produce manganese dioxide for lithium ion batteries are known to contaminate cathode materials with metallic impurities.  These impurities can cause internal short circuits after a number of charge/discharge cycles, which will by-pass any protection circuits, and unfortunately can lead to fires or explosions.”  i.e.: electric vehicles, laptops, cellphones etc. 
• High purity manganese dioxide is combined with lithium carbonate to form the cathode material used in the “spinel” type high tech lithium ion rechargeable battery.

The Company will be applying to register this patent in other countries which may be able to adopt American Manganese’s process on contract from the Company.

About Kemetco Research Inc.

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 BC Research.  BC Research had been in operation for over 60 years as an R&D contractor in British Columbia, Canada.  Kemetco Research is a strategic partner to American Manganese in the development of EMD and CMD powders for the lithium ion battery.

About Manganese

China controls electrolytic manganese metal (EMM) 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 a critical metal at risk for supply disruptions 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%), electronics (2%), and other applications (12%).

The U.S. has a 14% import duty on imports of EMM.

Electrolytic manganese dioxide (EMD) for the battery industry is expected to be the fastest-growing segment of the manganese market.  Ford Motors predicts production of hybrid electric vehicles will account for 25% of its entire vehicle line-up by 2020, and Hyundai has committed a lifetime guarantee to their hybrid electric vehicles that use lithium ion batteries with manganese spinel.

About American Manganese Inc.

American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming a producer of high purity EMD and CMD for the battery industry.

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

Green Car Report states lithium ion batteries are a family of products having very different performance characteristics resulting from incorporating specific alloying metals into the battery chemistry.  Lithium plus manganese or/and nickel (or other metals) typically carry less energy per volume than lithium plus cobalt, but are widely viewed as less susceptible to overheating.  The battery chemistry utilized by the Dreamliner was Lithium Cobalt Dioxide (LiCoO₂); similar to that used in laptop computers and cell phones.  American Manganese Inc.’s (“AMY”) product would be Lithium Manganese Dioxide (LiMn₂O₄), or spinel, similar to rechargeable batteries used in the Chevy Volt.  Both of these battery chemistries come under the generic heading “lithium Ion Batteries”.

AMY’s focus has been to produce high purity Electrolytic Manganese Dioxide (“EMD”) or Chemical Manganese Dioxide (“CMD”) for the Rechargeable Lithium Manganese Battery Industry utilizing their patent pending process.  Bloomberg Business Week reports short circuits caused by rogue metal particals in the battery material that may cause shorts once in a very long time.

Norm Chow, P.Eng. – President and Chief Executive Officer of Kemetco Research Inc. says:  “while researchers have made significant advances in materials used to improve performance of the lithium ion batteries, often overlooked are the importance of mining processes to produce raw materials which are later refined to battery grade materials.  A critical issue is that conventional mining processes introduce metallic impurities in raw materials.  These metallic impurities are known to cause internal short circuits resulting in thermal run-away, which by-passes protection circuits implemented for safety.  This unfortunately leads to explosions and fires in some cases.  The tolerances for these impurities are so low that there are no known methods to reliably test their presence.

In 2012, American Manganese was the only mining company that presented at the Battery 2012 conference in Denver, Colorado and is currently one of the leaders developing mining technology for improved raw materials for lithium ion batteries.  American Manganese has made significant progress in advancing their hydrometallurgical process to make these critical raw materials by avoiding steps that are known to introduce metallic impurities.  Prototype batteries have been produced and R&D will be advancing to the next stage.”

Currently AMY is seeking strategic partnerships and research and development grants to further efforts on producing cleaner high purity products to supply the Lithium Ion Battery market.

About Kemetco Research Inc.

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 BC Research.  BC Research had been in operation for over 60 years as an R&D contractor in British Columbia, Canada.

About American Manganese Inc.

American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming a producer of high purity EMD and CMD for the battery industry.

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

Private Placement:

# of Warrants:  13,827,461
Original Expiry Date of Warrants:  February 9, 2013
New Expiry Date of Warrants:  February 9, 2015
Exercise Price of Warrants:  $0.40
On behalf of Management

AMERICAN MANGANESE INC.

Larry W. Reaugh
President and Chief Executive Officer

On behalf of Management

AMERICAN MANGANESE INC.

Larry W. Reaugh
President and Chief Executive Officer

Each Unit is comprised of one common share in the capital of the Company (a “Share”) plus a two year share purchase warrant (a “Warrant”).
Each Warrant entitles the holder to purchase one Share at a price of $0.10 two years from the date of issuance, subject to accelerated exercise if the Shares trade at $0.15 per Share for 20 consecutive days.

This private placement is subject to the approval of the regulatory authorities and finders’ fees may be paid in accordance with the TSX Venture Exchange policies.

About American Manganese Inc.

American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming a producer of high purity EMD and CMD for the battery industry.

On behalf of Management

AMERICAN MANGANESE INC.

Larry W. Reaugh
President and Chief Executive Officer

Future Plan

Since the pre-feasibility study management has been studying ways to maximize their resources at Artillery Peak as follows:

a)    Address the opportunities to reduce capital expenses (capex) and operating expenses (opex) which include production of electrolytic manganese dioxide (EMD) or chemical manganese dioxide (CMD).  Only 60% of manganese metal is used to produce an equivalent amount of EMD or CMD to EMM (100%) significantly reducing the footprint and positively affect the capex and opex.  Production of CMD eliminates the requirement for electrolytic cells. 

b)    The Company has identified areas to explore where the potential to increase the manganese grades exists such as: 

• Wildcat drill hole AP-11-133 was drilled in the upper Shannon located 4 km west of manganese mesa and returned 7.62 meters grading 7.39% Mn.
• Wildcat diamond drill hole #ADH-25 was drilled 1.6 km south and east of Loves Mine and returned 24.39 meters of 4.34% Mn.  The Company will evaluate these targets which have the potential to host higher grades thereby possibly further reducing the overall foot print of the mill site and mining operations.  Other areas on the property like the Maggie Canyon also host the potential for higher grades of manganese.
• Focus on the criticality of manganese to the U.S. Government and various potential end users.
• Continue the dialogue with potential off-takers that have shown an interest in the manganese metal and dioxide market.
• The elimination of the electrolytic cells by focussing on research and development of CMD could reduce the electrical requirements by up to 75-80%.
• Reducing the amount of production (25 – 40,000 Ts/year) of manganese dioxide product potentially reducing capex for mining and processing.
• American Manganese’s cost of production is one of the lowest in the world.

Review

1.  10,607 meters (34,800 ft) of reverse circulation drilling in 84 holes (2011 program) was completed in the North Chapin, Lakes/MacGregor area resulting in the following Ni43-101 resource at a 1.0% Mn cut-off:

Previous drilling and Ni-43-101 resource studies identified additional reported resources on the Maggie Mine/Shannon Mine/Loves/Hurley/Planche/South Chapin/Burro/Price and Priceless zones at a 0.9% Mn cut-off as follows:

The Company has drilled 18,160 meters (59,565 ft) in 154 holes since 2008.

2.  On September 27, 2011 Kemetco completed the successful pilot plant operation on Artillery Peak materials.  Initial results of the leach and solid/liquid separation pilot tests were excellent; for instance rates of extraction of 92.7% manganese recovered was achieved from coarse feed material (minus 6.35mm) in 2 hours.  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 from the flow sheet. 

3.  On May 24, 2011, the Tucson, Arizona office of Tetra Tech was awarded the contract to provide environmental and consulting services to the Company on their Artillery Peak Project. 

4.  On December 6, 2011, the Company received a detailed positive manganese market forecast study from CPM Group.  Executive summary may be found on the website. 

5.  March 14, 2012, the Company announced the publication of their advanced process patent application.  The Company is addressing minor deficiencies received from the U.S. Patent Office and expects approval in the first quarter 2013. 

6.  On August 27, 2012, the Company filed an Amended Pre-feasibility Study at the request of the British Columbia Securities Commission in which the base case was amended to the 3 years trailing average.  The project was deemed to be uneconomic as a producer of electrolytic manganese metal (EMM).  The production of electrolytic manganese dioxide (EMD) or chemical manganese dioxide (CMD) introduces a different set of dynamics to the project.  All of the pilot plant testing, environmental studies and pre-feasibility may be incorporated into new studies for CMD or EMD. 

7.  October 12, 2012, the Company’s contractor, Kemetco Research Inc. successfully produced rechargeable lithium ion batteries from CMD produced from the Company’s Artillery Peak pilot plant test.  This is a major breakthrough.  Future testing by Kemetco will focus on a high purity product for the battery industry.

About American Manganese Inc.

American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming a producer of high purity EMD and CMD for the battery industry.

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

Larry W. Reaugh, Chief Executive Officer of American Manganese Inc. (“American Manganese” or the “Company”), (TSX.V:  AMY; Pink Sheets:  AMYZF; Frankfurt:  2AM), reports the Company has received a positive report titled “Chemical Manganese Dioxide Generated from Low Grade Manganese Resources” from Kemetco Research Inc.  To view the Report, follow the link below:

http://www.amydata.com/data/reports/American%20Manganese%20CMD%20Final%20Report%20Public%20Nov%2028%202012.pdf

American Manganese has developed a low-cost, environmentally friendly hydrometallurgical process to recover manganese (Mn) from lower grade resources. American Manganese has applied for a patent for their hydrometallurgical process that produces electrolytic manganese metal from low grade manganese resources, with low energy and water consumption. As a development of the existing process, American Manganese has commissioned this research to determine uses of Artillery Peak manganese resource material to generate high value alternative products. Chemical manganese dioxide (CMD) and lithiated manganese oxide (Li_xMn₂O₄) for use in rechargeable batteries were the areas researched.  

The research was successful in producing CMD from Artillery Peak resource material with low cation impurities and further avoiding processing steps that are known to introduce metallic impurities in the final product.  Cation impurities cause capacity fade, whereas metallic impurities are known to cause catastrophic failures (such as fire and explosions) in lithium ion batteries.   Working rechargeable lithium ion coin cell battery prototypes were produced from the CMD material. 

This report describes the results of this research project contracted by American Manganese to Kemetco Research Inc. The test program was partially funded by the Canadian Government through the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) for development work conducted over a five month period. 

Larry Reaugh says: “The technical and financial support granted to American Manganese Inc. by NRC IRAP was a great assistance in meeting the challenges of this research.”  The objective of the project is to improve the versatility and advance commercial efforts of a novel process technology developed by American Manganese Inc., for the recovery of manganese from low grade resources.  The proprietary hydrometallurgical processing scheme involves reductive leaching of the Mn with sulphurous acid, followed by purification, manganese carbonate precipitation and manganese metal electrowinning. The development work in this project was to use slip streams of manganese sulphate solution to produce chemical manganese dioxide as a secondary product.  Although chemical manganese dioxide can be used for various end uses, such as water and air pollution treatment, the main interest was to obtain an electrochemically active product.

The experimental work was to achieve the following objectives:

1. Determine processes to remove other non-metallic impurities that could be detrimental in the manganese dioxide product(i.e. potassium and others impurities)
2. Determine processes to produce manganese dioxide from manganese sulphate solution by oxidation and hydrothermal and thermal treatments.
3. Determine the product characteristics

Significant progress was made in determining the processes to remove impurities in the CMD. The purification process involves several stages, including iron and aluminum removal by aeration and pH adjustment to 8, sulfide precipitation to remove base metals, and under-stoichiometric precipitation of the manganese as manganese carbonate. Of note, this purification of the pregnant solution, the manganese carbonate precipitation, the choice of the oxidant, and the washing of the final product played a significant role in obtaining a final product similar or better than the commercial EMD.

A proprietary oxidant has been found to be the most prominent oxidant candidate to produce CMD, both in regards to the product crystalline form and oxidant consumption.

The chemical composition of the CMD produced from the Artillery Peak resource shows a lower impurity level in sodium, potassium, iron, aluminum, and copper when compared to commercial samples of EMD and CMD.

The CMD produced from the Artillery Peak manganese feedstock was successfully combined with lithium to produce the lithium manganese oxide cathode material used in rechargeable lithium ion batteries.  Button cell size rechargeable lithium ion batteries were fabricated using American Manganese cathode materials, and were successfully tested for electrical discharge and re-charge.  The Company plans to aggressively pursue this avenue upon successful financing of the project.

About American Manganese Inc.

American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming a producer of high purity EMD and CMD for the battery industry.

About Kemetco

Kemetco is 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 BC Research. BC Research had been in operation for over 60 years as a research and development contractor in British Columbia, Canada.

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

Geological fieldwork returned encouraging Cu-Ag-Au geochemical values at the Rocher Deboule project upper silvertip CK basin stockwork, lower silvertip CK No 2 & 4 veins and a new Iron Oxide Copper Gold (“IOCG”) target south of the historic Victoria vein mine.  Highlights of the program are outlined below:

1. UPPER SILVERTIP CREEK BASIN STOCKWORK:  This area is approximately 0.5-1.5 km northeast of the historic Rocher Deboule mine site.  In 2008, Dighem airborne total field magnetometer geophysical surveys identified a strong positive anomaly (60,000-62,000 nT, approximately 3,000-5,000 nT above average) over an area of about 0.5 X 1.0 km.  Follow up rock sampling in 2011 by Ethier Exploration, Hazelton, BC generated the following result highlights:

2011 ROCK CHIP SAMPLE GEOCHEMICAL ANALYSIS

Source- Acme Analytical Labs, Vancouver, BC, certificate VA08105005, & 11000309

2. LOWER SILVERTIP CREEK QUARTZ VEIN ZONE:  Additional rock and soil sampling was carried out in the historic Rocher Deboule mine area located on the lower elevation portion of Silvertip Creek.  Over an area of about 0.5 X 0.7 km, the following rock & soil samples taken in 2012 by Andris Kikauka (geologist) generated the following results:

Rock Chip Samples (2102):

Soil Samples (2012):

(source: Pioneer Labs Ltd, Richmond, BC, report number 2121427)

3. Additional prospecting by Ethier Exploration was carried out approximately 2 km west of the Upper Silvertip Basin Stockwork Zone, and about 0.7 km south of the historic Victoria mine, indentifing a bulk tonnage target near the contact of the Late Cretaceous Rocher Deboule porphyritic granodiorite
stock with older hornfels volcanic and sedimentary rocks.  This contact zone is considered highly prospective for IOCG type mineralization, which is supported by the fact that the Rocher Deboule occurrence ranks in the 95^th percentile in combined Cu-Au-Fe-La in RGS province wide geochemical survey (source: Ministry of Energy, Mines & Petroleum).

The Company carried out most of 2011-12 fieldwork  in a 3 X 2 km area surrounding the historic Rocher Deboule Cu-Ag-Au mine which from 1914-1954, mined 123,395 tonnes, producing 2,840,966 kgs Cu, 2,653,086 grams Ag, 157,226 grams Au, and 34,692 kgs W (source: Minfile database).  Historic work in 1988 by Southern Gold Res Ltd on the Rocher Deboule No 2 Vein resulted in a resource estimate of 54,000 tonnes grading 2.7% Cu, 207.4 g/t Ag, & 3.5 g/t Au (note: this is a historic estimate that is not current with NI 43-101 standards, and is NOT TO BE RELIED UPON).

This geological summary of the Rocher Deboule Project has been reviewed by Andris Kikauka, P. Geo, a Qualified Person under the guidelines of NI
43-101.

About American Manganese Inc.

American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming a producer of high purity EMD and CMD for the battery industry.

On behalf of Management

AMERICAN MANGANESE INC.

Larry W. Reaugh
President and Chief Executive Officer