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Monterrico Metals plc

('Monterrico' or the 'Company')

11 February 2009

Loan Facility Agreement 

Monterrico Metals plc (AIM : MNA) announces that it has entered into a further loan facility agreement (the 'Loan Facility') with Xiamen Zijin Tongguan Investment Development Co., Ltd ('Zijin Consortium'), the majority shareholder of the Company. The previous loan agreements with Zijin Consortium of up to £2 million, US$8 million and US$10 million (which was revised to US$5 million plus £ 2.55 million), were extended to be repaid on 30 April 2009, 3 July 2009 and 2 February 2010 respectively. The board is in discussions with the Zijin Consortium to extend the term of the loans due to expire this year. 

The Loan Facility is for an aggregate amount of up to US$5 million at an interest rate of not greater than 1 per cent above LIBOR, as published by the British Bankers Association (BBA). The loan is repayable on 9 February 2010.  

The proceeds from the Loan Facility, along with the Company's existing cash balances, will be used to meet the Company's anticipated working capital needs this year.

The Loan Facility constitutes a related party transaction for the purposes of the AIM Rules. The Directors of Monterrico (other than Fusheng Lan, Wenzhou Huang and Xiaodong Huang who are also directors of the Zijin Consortium, and Guobin Hu, who is General Manager of Zijin Consortium) consider, after having consulted with Monterrico's nominated adviser, Evolution Securities Limited, that the terms of the Loan Facility are fair and reasonable insofar as the Company's shareholders are concerned.

Enquiries:

For more information please contact:

Monterrico Metals plc

Susan Li, Finance Director                                +852 2803 2738

Andrew Bristow, Investor Relations Manager    +511 226 3322

    

EVOLUTION SECURITIES LIMITED

(Nominated adviser)                                           +44 20 7071 4300

Rob Collins

Barry Saint

Adam James

Esther Lee

    

EVOLUTION SECURITIES CHINA LIMITED 

(Financial adviser and broker)                           +44 20 7220 4850

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