AAA.L Regulatory News (AAA)

12 Oct 2005 07:00

Adastra Minerals Inc12 October 2005 Adastra Secures Subsurface Exploration Rights at Kolwezi Trading: TSX and AIM: AAA LONDON, U.K. (October 12, 2005) -- Adastra Minerals Inc. ("Adastra" or "theCompany") is today delighted to announce that it has secured the subsurfaceexploration rights under the whole of its Kolwezi tailings project licence areain the Democratic Republic of Congo ("DRC"). This new licence, for copper andcobalt exploration, has been awarded to Roan Prospecting Sprl, a wholly ownedCongolese subsidary of Adastra. The renewable licence, which has a validity offive years, has been issued by the Mining Cadastre and endorsed by a MinisterialDecree (ndegrees455/cab min/01/2005 of the 24 August 2005) signed by theMinister of Mines. These subsurface rights cover an area of 6,200 hectares with coordinatesidentical to the Tailings Exploitation Licence, awarded on 15th June 2004 toKingamyambo Musonoi Tailings SARL ("KMT"), a Congolese company 82.5% owned byAdastra. KMT is the company which will develop the Kolwezi tailings project. These licences cover areas of past mining activity, including the Kingamyambo,Kananga West, Kananga East and Clippe Nord deposits. Adastra believes thatextensive copper and cobalt mineralization remains within the area; although, asyet, no resource figures are available. An exploration programme for a numberof targets in this area is under preparation. "The award of these subsurface exploration rights is of significant importanceto our company", said Tim Read, CEO of Adastra. "On the one hand, it gives usconsiderable exploration opportunities quite separate from the development ofthe Kolwezi tailings project. On the other, it affords total protectionregarding the integrity of the area covered by the Tailings ExploitationLicence, ruling out any possibility of conflicting interests on land use." About the Kolwezi Project Adastra's Kolwezi Project consists of two dams containing 112.8 million tonnesof oxide tailings, grading 1.49% copper and 0.32% cobalt, as determined by Dr.Isobel Clark of Geostokos Limited, a "qualified person" as defined by theCanadian Securities Administrators' NI 43-101. This resource has the potentialto host one of the world's largest and lowest cost cobalt producers. Adefinitive feasibility study is expected to be completed in the first quarter of2006. If this study is favourable, construction is expected to commence beforeyear-end, with first production in mid 2008. The project is expected to produceinitially approximately 5,500 tonnes of cobalt and 30,000 tonnes of copperannually, at which level of output Kolwezi has a mine life in excess of 50years. Such a project would generate significant taxation, royalty and dividendrevenues to the Government, as well as providing local employment andcontributing to the regeneration of the DRC's copper belt infrastructure. About Adastra Adastra is an international mining company listed on the Toronto Stock Exchangeand on AIM, in London, under the symbol "AAA". It is currently developingseveral mineral assets in Central Africa, including the Kolwezi Project and thepossible rehabilitation of the Kipushi zinc mine in the DRC. Adastra's growthstrategy emphasizes the creation of shareholder value through the development ofworld-class resources in stable or stabilizing political environments. Contact us: LondonTim Read Justine Howarth / Cathy MalinsChief Executive Officer Parkgreen CommunicationsT: +44 (0)20 7355 3552 T: +44 (0)20 7493 3713F: +44 (0)20 7355 3554 F: +44 (0)20 7491 3936E: london@adastramin.com E: justine.howarth@parkgreenmedia.com North AmericaMartti KangasThe Equicom GroupT: +1 416 815 0700 x. 243 +1 800 385 5451 (toll free)F: +1 416 815 0080E: mkangas@equicomgroup.com This News Release contains forward-looking statements within the meaning of theUnited States Private Securities Litigation Reform Act of 1995 concerning theCompany's plans for its principal properties in the Democratic Republic of Congo("DRC"). These forward-looking statements are subject to a variety of risks anduncertainties which could cause actual events or results to differ materiallyfrom those reflected in the forward-looking statements, including, withoutlimitation, risks and uncertainties relating to political risks involving theCompany's operations in the DRC and the policies of other nations andorganizations towards companies doing business in such jurisdictions, theinherent uncertainty of production and cost estimates and the potential forunexpected costs and expenses, commodity price fluctuations, the inability orfailure to obtain adequate financing on a timely basis and other risks anduncertainties, including those described in the Company's Annual Report on Form20-F for the year ended October 31, 2004 and Reports on Form 6-K filed with theSecurities and Exchange Commission. This information is provided by RNS The company news service from the London Stock Exchange