Marengo Mining Limited Enters into a Memorandum of Understanding (Power) with Madang Provincial Government (PNG) Business Arm

Marengo Mining Limited ("Marengo" or the "Company")
(TSX:MRN)(ASX:MMC)(POMSoX:MMC) announces that it has entered into a Memorandum
of Understanding ("MoU") with the Madang Development Corporation to cooperate
in, and explore becoming an offtake party, in relation to a power supply
solution for industrial, and domestic electricity consumers in Madang Province.


The Madang Development Corporation ("MDC") was established in 1977 and is the
business arm of the Madang Provincial Government. The MDC was created to develop
and operate commercial ventures on behalf of the Madang Provincial Government.


The MDC is currently in discussions with international foreign investment
groups, interested in investing in power generation and supply, within Madang
Province. Under the terms of this non-binding MoU, which was signed in the
presence of the Hon. Jim Kas MP, Governor of Madang Province, Marengo and the
MDC have agreed to cooperate in advancing these discussions.


NOTES:

For further information on the Yandera Project, including a description of
Marengo's standard data verification processes, quality assurance and quality
control measures, and details of the key assumptions, parameters and methods
used to estimate the mineral resources set out in this report and the extent to
which the estimate of previously declared mineral resources set out herein may
be materially affected by any known environmental, permitting, legal, title,
taxation, socio-political, marketing or relevant issues, readers are directed to
the technical report entitled "Technical Report on the Yandera Copper-
Molybdenum-Gold Project Madang Province, Papua New Guinea", dated May 14, 2012,
lodged concurrently on the SEDAR website. 


Cautionary Note Regarding Forward-looking Statements

This press release contains certain "forward-looking statements" and
"forward-looking information" under applicable Canadian securities laws
concerning the proposed transaction and the business, operations and financial
performance and condition of Marengo Mining Limited ("Marengo"). Forward-looking
statements and forward-looking information include, but are not limited to,
statements with respect to the prospects for and success of exploration
activities; the benefits of the development potential of the properties of
Marengo; the future price of molybdenum, gold and copper; the estimation of
mineral reserves and resources; the realization of mineral reserve estimates;
the timing and amount of estimated future production; costs of production; and
currency exchange rate fluctuations. Except for statements of historical fact
relating to Marengo, certain information contained herein constitutes
forward-looking statements. Forward-looking statements are frequently
characterized by words such as "plan," "expect," "project," "intend," "believe,"
"anticipate", "estimate" and other similar words, or statements that certain
events or conditions "may" or "will" occur. Forward-looking statements are based
on the opinions and estimates of management at the date the statements are made,
and are based on a number of assumptions and subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to
differ materially from those projected in the forward-looking statements. Many
of these assumptions are based on factors and events that are not within the
control of Marengo and there is no assurance they will prove to be correct.


Factors that could cause actual results to vary materially from results
anticipated by such forward-looking statements include the actual results of
exploration activities, changes in market conditions, risks relating to
international operations, fluctuating metal prices and currency exchange rates,
and other risks of the mining industry. Although Marengo has attempted to
identify important factors that could cause actual actions, events or results to
differ materially from those described in forward-looking statements, there may
be other factors that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Marengo undertakes no
obligation to update forward-looking statements if circumstances or management's
estimates or opinions should change except as required by applicable securities
laws. The reader is cautioned not to place undue reliance on forward-looking
statements. Statements concerning mineral reserve and resource estimates may
also be deemed to constitute forward-looking statements to the extent they
involve estimates of the mineralization that will be encountered if the property
is developed. Reference is made to the most recent annual information form of
Marengo filed with Canadian securities regulators which includes further
discussion of the risk factors which may impact the business and operations of
Marengo. 


COMPANY NO. 822513-3 / ARBN: 161 356 930

FOR FURTHER INFORMATION PLEASE CONTACT: 
Marengo Mining Limited
Les Emery
President & CEO
[phone]
[e-mail]


Marengo Mining Limited
Dean Richardson
Corporate Secretary and VP-Investor Relations
[phone]
[e-mail]
www.marengomining.com