MINERAL COMMODITIES LTD — Regulatory Filings 2014

Jul 14, 2014

Mineral Commodities Ltd

ACN 008 478 653 ABN 39 008 478 653

40 Murray Road North Welshpool WA 6106, Australia PO Box 235, Welshpool DC WA 6986, Australia Telephone: 61 8 6253 1100 Facsimile: 61 8 9258 3601 Email: info@mineralcommodities.com Web: www.mineralcommodities.com

15 July 2014

• MSR SIGNS GARNET OFFTAKE AGREEMENT WITH WORLD’S LARGEST PRODUCER AND GLOBAL DISTRIBUTOR OF INDUSTRIAL GARNET ABRASIVES

• POTENTIAL TO ADD UP TO US$20 MILLION IN ANNUAL REVENUE

Mineral Commodities Limited’s (MRC) subsidiary Mineral Sands Resources Pty Ltd (MSR), the owner of the ultra high grade, and recently commissioned Tormin Mineral Sands project, 400km North of Cape Town, South Africa has entered into a three year garnet offtake agreement with GMA Garnet Group of Australia (GMA), the world’s largest producer and global distributor of industrial garnet abrasives .

The three-year Offtake Agreement (Agreement), with a further two-year buyers option, provides for a minimum of 150,000 tpa but up to 240,000 tpa of garnet concentrate to be sold to GMA. The Agreement provides the potential to add revenues of up to US$20mpa depending on a broad range of exchange rate and price assumptions and garnet characteristics including moisture and silica content.

Under the Agreement, MSR has maintained the right to sell up to 60ktpa of garnet concentrate to third parties at its discretion.

Garnet is used in abrasive blasting and waterjet cutting applications, and is a by-product of the zircon/rutile/ilmenite production process at Tormin. For every tonne of zircon concentrate, approximately five tonnes of garnet concentrate is produced.

The Tormin garnet concentrate will be sold FOB from the Saldanha Bay Port north of Cape Town and re-processed into industrial abrasives by GMA.

Mineral Commodities Executive Chairman Mark Caruso commented: “This is another important agreement for Tormin, in addition to our zircon/rutile agreement with Wogen, we are very satisfied with the agreement reached with GMA. The agreement with GMA now provides certainty to the offtake of our life of mine Garnet production. The original metrics of this project did not take into account the upside resulting from Garnet sales. One of the most significant aspects about Tormin is the extremely high grade and valuable assemblage of minerals which are processed through a simple, conventional and low cost plant.”

The Group Managing Director of GMA Torsten Ketelsen added: “ The Tormin garnet is of exceptionally high quality and this agreement with MSR adds considerably to GMA’s global garnet resources. ”

Mineral sand concentrate production commenced at Tormin in early December 2013. At name plate capacity the 1.2 Mtpa Tormin process plant will produce approximately 48,000 tpa of zircon/rutile, 135,000 tpa of ilmenite, and 240,000 tpa of garnet concentrate.

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The company produced approximately 5,000 tonnes of non-magnetic concentrate, 29,400 tonnes of garnet concentrate, and 8,300 tonnes ilmenite concentrate in June. The June quarter production was above budget, with the company producing approximately 12,800 tonnes of non-magnetic concentrate, 66,900 tonnes of garnet concentrate, and 26,700 tonnes of ilmenite concentrate.

The tonnages which underpin the Agreement and production capacity noted above are based on the current mineral resource of MRC as set out in the Resource Table below. These Resources have been prepared by a Competent Person in accordance with the JORC Code 2004. All Resources underpinning the production targets used in the Agreement are in the indicated category.

The value attributed to the Agreement is based on the production target of 240,000 tonnes of garnet using a broad range of exchange rate and price assumptions stipulated in the Offtake Agreement and garnet characteristics including moisture and silica content. Specific information in respect to these assumptions is considered to be commercially sensitive.

For enquiries regarding this release please contact: Mark Caruso – Executive Chairman +61 8 6253 1100

Media Enquires Simon Jemison – Collins Street Media +61 3 9224 5319

MRC - Resource Statement

				Ilmenite	Zircon	Rutile	Garnet
PROJECT	Category	Ore Mt	HM%	(% in HM)	(% in HM)	(%in HM)	(%i HM)
Tormin	Indicated	2.7	49.4%	21.4%	6.9%	1.4%	51,2%
Xolobeni	Measured	224	5.7%	54.5%
	Indicated	104	4.1%	53.7%
Total M+Ind		330.7
Sub-total	Inferred	18	2.3%	69.6%
Total MRC		348.7	5.3%	51.7%

Competent Person

The information in this announcement which relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Allen Maynard, who is a Member of the Australian Institute of Geosciences (“AIG”), a Corporate Member of the Australasian Institute of Mining & Metallurgy (“AusIMM”) and independent consultant to the Company. Mr Maynard is the Director and principal geologist of Al Maynard & Associates Pty Ltd and has over 35 years of exploration and mining experience in a variety of mineral deposit styles. Mr Maynard has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves”.(JORC Code). This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported Mr Maynard consents to inclusion in the report of the matters based on this information in the form and context in which it appears.

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