Kun-Manie Pre-Feasibility

Amur Minerals Corporation
13 December 2007


                                                                              

13 December 2007



                           Amur Minerals Corporation
                           ('Amur' or 'the Company')

                    NPV for Kun-Manie: $84 million Post Tax

                   (all financial figures are in US dollars)


Amur Minerals Corporation (AIM: AMC), the exploration and development company
focused on the Far East of Russia, announces the results of the SRK Consulting
Pre Feasibility study on its Kun-Manie nickel sulphide deposit located in
eastern Russia. The projections in the study indicate a Post Tax NPV (10%) of
$84 million with an IRR of 15.7%. At approximately 16,000 tonnes of nickel
contained in concentrate per year, the facility would be one of the largest new
nickel sulphide producers since the discovery of Voisey's Bay.


Key Production Parameters:

   •Production of ore will be derived from three ore bodies;

   •The mine and plant will operate 365 day per year;

   •Seasonal roads will be used for 8 months each year to deliver concentrate
    and supplies between the site and rail head;

   •Annually, four million tonnes of ore are proposed to be mined by open pit
    methods with a stripping ratio of 2.9 to 1.0 - one of the lowest stripping
    ratios associated with nickel sulphide mines worldwide;

   •A Probable Ore Reserve of 31.5 Mt with mean grades of 0.54% Ni and 0.15%
    Cu has been derived from the previously reported Measured and Indicated
    Mineral Resource.

   •The production schedule envisages that a total of 38.2 million tonnes
    (Mt) of ore at a grade of 0.55% nickel and 0.15% copper containing 210,000
    tonnes of nickel and 59,000 tonnes of copper will be delivered to the plant
    providing a ten year mine life. This schedule includes a portion of Inferred
    Mineral Resources. All mine production has been adjusted to reflect mining
    loss and dilution assumptions; and

   •The projected 76% metallurgical recovery will yield a total of 159,000
    tonnes of nickel and 43,000 tonnes of copper.

Key Financial Parameters:

   •Initial capital expenditure is projected to be $331 million. This
    includes the construction of a road to the site, all necessary ancillary
    structures, a processing plant, the tailings dam, mining fleet,
    preproduction mining, haul road construction and transport fleet.
    Engineering, procurement and construction management and contingencies are
    included. Approximately 42% of the initial capital cost relates to the
    construction of a seasonal access road;

   •A total of $66 million sustaining capital is projected over the 10 year
    mine life. This includes replacement of the mining and transport fleets as
    well as expansion of the tailings impoundment area as required;

   •The total operating cost to generate a tonne of concentrate and deliver
    it to the nearest rail load out facility is projected to be $16.63. This
    includes mining, processing, tailings disposal, royalties, administrative
    and transport costs ;

   •The combined cost per ore tonne for rail transport and smelter charges is
    projected to be $6.33 per ore tonne;

   •The total cost to generate a pound of nickel will be $2.51 including
    mining, processing, administrative, and all transportation fees. This
    excludes the contribution made from by-products;

   •The projected Post Tax NPV (10%) is $84 million with an IRR of 15.7%.
    This is based on post-tax projections - the most conservative approach to
    reporting on a project's economic potential; and

   •The nickel price utilised in the evaluation study is $7.50 per pound
    ($16,530 per tonne), compared to an average price for the first 11 months of
    2007 of $17.30 per pound. Each dollar per pound increase adds more than $100
    million to the NPV (10%).


Additional details are provided in the section below.



Robin Young, Chief Executive Officer, Amur Minerals commented:

'Our primary objective was to determine if the resource we have identified to
date is large enough to justify the significant capital expenditure required due
to the remote location of Kun-Manie. This report confirms that the first phase
of the Kun-Manie development is economic. It also confirms our belief that
Kun-Manie will be a premier nickel producer when in production.

'Multiple undrilled targets remain and we have not yet defined the limits of the
mineralisation in two of our drilled deposits, all of which is recoverable by
open pit mining. There is the potential to more than double the resources on the
site.

'These open pit mineable ore bodies will provide a solid platform for further
development. The exploration of additional defined targets of similar grade in
the immediate area will add to the upside of the project and the potentially
higher grade, larger targets of Yan-Hegd and Chorny Espiline could significantly
change the scale of the operation.

'With the completion of the study, Amur has entered a new era: every tonne of
newly drilled nickel will now increase and enhance the economic potential of the
project.'


The information contained in this announcement has been reviewed and approved by
the CEO of Amur, Robin Young. Mr. Young is a Geological Engineer (cum laude) and
is a Qualified Professional Geologist, as defined by the Toronto and Vancouver
Stock Exchanges.



Enquiries:

Company           Co-Broker                Nomad and          Public Relations
                                           Co-Broker
Amur Minerals     Fox-Davies Capital       RBC Capital        Bankside
Corp.             Limited                  Markets
Robin Young       Daniel Fox-Davies        Andrew Smith       Michael Padley
CEO                                        Martin Eales       Louise Davis
+7 (495) 629
4418              [phone]     [phone]    [phone]
                                           7881               8881


General Description of the Project


The project is based on a single simple concept that consists of generating a
sulphide concentrate for sale on the international market. Conventional open pit
mining and flotation of the ores serve as the base case. The concentrate will be
trucked from the site over a 320 kilometre long road for delivery to the rail
head at Ulak located on the Baikal Amur railroad in the Amur Oblast. From there,
it will be transported by rail to a commercial smelter. For rail transport
costing, it has been assumed that the concentrate will be shipped a maximum
distance of 5,000 kilometres. There are several smelters located within this
distance of the site.


The project will require the construction of a 320 kilometre long road, to allow
truck access to the site over 8 months of the year, as well as the construction
of a power line. The local state owned utility company has stated it will cover
the capital expenditure to construct the power line and offset this investment
by utilising a higher cost per kilowatt hour for power consumption. Surveys for
the road and power line will be commissioned over the next year and final
engineered designs will be submitted to the Local Government for approval.


The site will be operational throughout the year. Mine production will be
derived from pits located along the Krumkon Trend within the Ikenskoe,
Vodorazdelny and Maly Krumkon deposits. Mining will result in the delivery of
4.0 million tonnes of ore per year to the mill, which is planned to be
constructed approximately midway between the three deposits. Waste will be
placed in dumps located adjacent to the pits. An average stripping ratio of 2.9
tonnes of waste per tonne of ore is anticipated.


The mill is planned to treat 4.0 million tonnes of ore per year and is projected
to have an overall recovery of 76%. This recovery is based on metallurgical test
work completed by Sibsvetmetniproject of Krasnoyarsk with adjustments by SRK
Consulting metallurgical engineering staff. The mill tailings will be stored
within an impoundment adjacent the mill site. The concentrate will be
transported by truck during an eight month period and stored at a secured yard
next to the rail head in Ulak. Monthly shipments to the smelter will provide a
stable production cycle and recovery of revenues.


The smelter has not been identified in the study. The terms for smelting the
concentrate were derived from an unsolicited smelter schedule identifying
payment and charge parameters. Payments for delivered nickel will range from 61
to 67% of the contained nickel and 50% of the contained copper. As the smelters
are land-locked the Company has assumed that the freight costs can be shared.
The Company believes that these terms can be significantly improved.


Identified Areas Of Upside Potential to Improve Results


The study has not optimised the operation nor was it intended to accomplish
this. It was intended to establish the current viability of the existing
mineralisation to support the operation as a large low grade producer. There are
numerous areas of potential improvement as follows:


  • Exploration potential remains very high within the property limits and
    additional resources could be added thereby expanding the mine life and
    impacting the overall annual production rate. The limits of the
    mineralisation within the Maly Krumkon and Ikenskoe pits have not been
    established. These could be enlarged and this next season's drill programme
    will continue to conduct step out drilling within these two areas.
    Successful results will extend the life of the mine and may permit selective
    mining wherein higher grades could be delivered to the mill earlier in the
    production cycle. In addition, the Chorney Espiline, Kubuk and Falcon
    targets have not been drilled. These could add mineable resources . Yan Hegd
    also represents a large target that could provide added resources;

  • The access road represents approximately half of the initial capital
    expenditure. The study results are based on large scale maps. Flights over
    part of the route indicate that there is potential to minimise costs over
    approximately half of the route though the principal objective of further
    studies will be to identify a low-cost route over a watershed and to firm up
    the cost estimate.

  • The Maly Krumkon pit was not optimised and optimisation studies are
    expected to increase the size of the open pit;

  • Metallurgical test work has not been optimised. Follow up work is needed
    to determine the extent of improvement in metallurgical recoveries and
    concentrate quality potentially improving the global project economics;

  • The smelter schedule used in this analysis was an unsolicited offer. It
    has not been negotiated and can therefore be considered to be onerous to the
    project. In addition, Brook Hunt has documented that in 2012 there will be a
    shortage of sulphide concentrate available to toll smelters as smelter
    capacities are projected to increase while sulphide nickel production will
    decrease. The Company believes it is better to delay detailed negotiations
    until a later date when better terms may be available that would further
    enhance the project economics;

  • Alternative metallurgical processes will be investigated in the near
    term. As there is a large hydroelectric dam within the Amur Oblast, the
    Company considers that there could be potential for smelting of the
    concentrate by using flash smelting and / or electric arc furnaces that will
    result in the generation of a saleable matte. Successful results would
    reduce the cost to produce a pound of metal, recover a higher percentage of
    the contained metal value and allow for the recovery of revenues from the
    cobalt and other minor constituents. Concurrently, rail transport costs
    would also be significantly reduced. The Company also intends to examine
    hydrometallurgical processes; and

  • A comprehensive evaluation of the preferred size and scale of the
    operation is required. This will include a series of trade off studies that
    will establish the final configuration of and its production capacity.



Economic Modelling Considerations and Results


Within the economic evaluation, sensitivity analyses to the variation in the
metal prices, operating and capital cost expenditures were compiled. A summary
of the key input parameters and results of the cash flow model are provided in
the tables below.



Operational Parameters and Considerations

                                Mine Production
Total Production (Ore Plus Waste)              Mt            147.1
Waste                                          Mt            108.8
Ore                                            Mt             38.2
Stripping Ratio (Waste To Ore)                                2.85
Ni Grade                                        %             0.55
Ni                                             kt            209.7
Cu Grade                                        %             0.15
Cu                                             kt             59.1
                                Mill Production
Total Ni recovery                               %               76
Tonnes concentrate (dry)                       kt            2,808
Tonnes concentrate (wet)                       kt            3,033
% Ni in concentrate                             %              5.7
Tonnes Ni in Concentrate                       kt            159.3
% Cu in Concentrate                             %              1.6
Tonnes Cu In Concentrate                       kt             43.4
                             Smelter Considerations
Payable Nickel With Adjustments                 %               64
Payable Copper With Adjustments                 %               50



Operating Costs

                         Operating Costs Per Ore Tonne
Smelter Charges                                               4.85
Rail Freight To Smelter                                       1.48
Mining                                                        3.46
Processing                                                    6.41
Tailings                                                      0.21
Freight From Site To Rail Head                                1.93
Royalties                                                     3.16
G&A                                                           1.46
Total All In Cost Per Ore Tonne                              22.96



Capital Costs - Combined Initial Plus Sustaining Plus Contingency

              Infrastructure & Permanent Facilities Capital Costs
Studies                                              $m          5
Road - 320 Km Access Road                            $m        140
Power - 320 Km Access                                $m          0
Site Facilities                                      $m          5
EPCM (Road, Power, Facilities, Processing)           $m          7
Processing                                           $m        108
Tailings                                             $m         29
Haul Roads                                           $m         19
Ikenskoe Diversion                                   $m          2
Transportation Fleet                                 $m         20
Mining Fleet                                         $m         66
Total Life Of Mine Capital                           $m        401



Sensitivity Analysis

   Parameters         Base         Nickel Price       Capital Cost %      Operating Cost %
                      Case          Sensitivity          Variation          Variation
                               + $1.00    - $1.00      +25%     -25%       +25%      -25%
Nickel Price (lb)    $7.50        $8.50      6.50     $7.50    $7.50      $7.50     $7.50
Nickel Price (t)   $16,530      $18,734   $14,326   $16,530  $16,530    $16,530   $16,530
Operating Costs       100%         100%      100%      100%     100%       125%       75%
Capital Costs         100%         100%      100%      125%      75%       100%      100%

Initial Start 
Up Capital (m USD)   336.4        336.4     336.4     419.3    253.5      336.4     336.4

Sustaining 
Capital (m USD)       65.9         65.9      65.9      82.4     49.5       65.9      65.9

Post Tax NPV
10% (m USD)            84           179       -29        11      157         19       149

IRR (%)              15.7%        21.7%      7.9%     10.6%    23.3%      11.3%      19.9%

Payback Year            4            3          7         5       3           5         3

NPV To Initial
Cap Ratio            28.3%        60.2%     -9.9%      3.1%    70.1%       6.4%      50.1%
  
Cost / Lb
Nickel FOB Rail      1.81          1.86      1.75      1.81     1.81       2.17       1.45

Cost / Lb
Nickel To Smelter    0.69          0.69      0.69      0.69     0.69       0.73       0.65

Cost / Lb
Nickel Init Cap Ex   0.96          0.96      0.96      1.19     0.72       0.96       0.96
 
Total Cost Per
Pound                3.46          3.51      3.40      3.70     3.22       3.86       3.06




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