Patent Application Submitted for Artillery Peak Manganese Extraction Process

Added August 30th, 2011 – Vancouver, British Columbia


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”) is pleased to report the Company has submitted its full patent application for the hydro-metallurgical process the Company developed to extract manganese from its Artillery Peak Manganese deposit. 

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

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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.