AAA.L Regulatory News (AAA)

1 Nov 2005 07:00

Adastra Minerals Inc01 November 2005 Adastra Secures Rights for Quarry Products Near Kolwezi Trading: TSX and AIM: AAA LONDON, U.K. (November 01, 2005) -- Adastra Minerals Inc. ("Adastra" or "theCompany") today announces that it has secured quarry exploration rights forlimestone and aggregates in proximity to its Kolwezi Tailings Project in theDemocratic Republic of Congo ("DRC"). A stable supply of these quarry productswill be essential for project construction and operation. The rights cover ten concession areas: eight for limestone, and two foraggregates. The renewable licences have an initial term of one year and wereawarded to Roan Prospecting & Mining Sprl, a wholly owned Congolese subsidary ofAdastra. The licences were issued by the Mining Cadastre and endorsed byDecisions signed by the Katangese Mining Chief of Department. The two aggregates licences cover concessions close to the proposed Kolweziproject and encompass an area of historical aggregate quarrying. An initialinspection by the Company's technical team indicates that the in situ materialshave potential to meet the Kolwezi plant construction requirements for railballast, road gravel, and sand and crushed stone for cement. The eight limestone licenses cover an area approximately 45 km northest ofKolwezi that includes a large outcrop of massive limestone of a high purity.The Kolwezi process plant is expected to require approximately 30,000 tonnes ayear of limestone and lime. Tim Read, CEO of Adastra noted: "We have seen a significant increase in miningactivity in the Kolwezi area. With this in mind, we are very keen to ensureaccess to stable and price-competitive supplies of raw materials for ouroperations. While alternative sources of these materials are currentlyavailable locally, there is no assurance of future availability or cost.Controlling our own sources of supply therefore enables us to mitigate suchrisks." 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 will commence before year-end,with first production in the first quarter of 2008. The project is expected toproduce initially approximately 5,500 tonnes of cobalt and 30,000 tonnes ofcopper annually, at which level of output Kolwezi has a mine life in excess of50 years. Such a project would generate significant taxation, dividend and royaltyrevenues to the DRC 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