AAA.L Regulatory News (AAA)

29 Mar 2006 17:19

Adastra Minerals Inc29 March 2006 NEWS RELEASE Commencement of Site Works at Kolwezi Project Trading: TSX and AIM: AAA London, UK (March 29, 2006) - Adastra Minerals Inc. ("Adastra" or the "Company")announces that it has given approval for early site works to commence at theKolwezi Copper and Cobalt Tailings Project ("Kolwezi" or the "Project") in theDemocratic Republic of Congo ("DRC"). This site activity will include completingthe geotechnical excavation work to determine foundation conditions for thefinalised plant layout, tailings dam and rail and road routes. Concurrently, the Company is in negotiations with contractors to commence theearth works programme required for the project. It is anticipated that theinitial earth works will commence immediately following the completion of thegeotechnical excavation work, with the objective of finishing the critical worksbefore the start of the rainy season in November. Tim Read, President and CEO of Adastra, commented: "On a day when First Quantumhave down graded their financial commitment to the Kolwezi Project from "will"to "could", we are delighted to announce that we will fast-track the developmentof the Project to bring it on stream in the quickest and most efficient mannerpossible. We are confident that the majority of the critical initial site workwill be finished in the next seven months, so as to permit civil works go-aheadimmediately once financing has been completed. This in turn should enable theoverall project schedule to be reduced and in turn should enhance the economicsof the project. Adastra is uniquely positioned to take advantage of this timingopportunity." About Adastra Adastra is an international mining company listed on the Toronto Stock Exchangeand on AIM, in London, under the symbol "Adastra". It is currently developingseveral mineral assets in Central Africa, including the Kolwezi Project and thepossible rehabilitation of the Kipushi zinc mine in the Democratic Republic ofCongo. Adastra's growth strategy emphasises the creation of shareholder valuethrough the development of world-class resources in stable or stabilisingpolitical environments. Contact us: London AdastraTim Read, President and Chief Executive OfficerTel.: +44 (0)20 7257 2040 Canaccord AdamsRobert FinlayTel.: +44 (0)20 7518 2777 Parkgreen CommunicationsJustine Howarth / Cathy MalinsTel.: +44 (0)20 7493 3713 Toronto EquicomMartti KangasTel.: +1 (416) 815 0700 This news release contains forward-looking statements within the meaning of theUnited States Private Securities Litigation Reform Act of 1995 andforward-looking information within the meaning of the Securities Act (Ontario)(together, "forward-looking statements"). Such forward-looking statements,include but are not limited to the Company's plans for its Kolwezi Project inthe DRC, the timing of completion of initial site work at the Project, and theimplications thereof for the Project economics. These statements involve knownand unknown risks, uncertainties and other factors which may cause the actualresults, performance or achievements expressed or implied by suchforward-looking statements to be materially different. Such factors include,among others, 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, fluctuations in the price of copper and cobalt,conclusions of economic evaluations, changes in project parameters as planscontinue to be refined, the inability or failure to obtain adequate financing orcomplete the proposed transaction with Mitsubishi Corporation on a timely basis,the effect on Adastra's near term share price should the Revised First QuantumOffer fail, and other risks and uncertainties, including those described in theCompany's Annual Report on Form 20-F for the year ended October 31, 2005 andreports on Form 6-K filed with the Securities and Exchange Commission and theCanadian Securities Administrators and available at www.sec.gov andwww.sedar.com. This information is provided by RNS The company news service from the London Stock Exchange