Project Update

RNS Number:8896P
Monterrico Metals PLC
12 March 2008



Monterrico Metals plc

("Monterrico" or "the Company")

AIM: MNA



New Management Plans Trade Off Study to Maximise Value of Rio Blanco

London, 12 March, 2008:  Monterrico, the AIM listed Resource Company, is pleased
to announce an update on developments at its wholly owned Rio Blanco Copper/
Molybdenum Project in Northern Peru.

Following the change in management in June 2007, the Company embarked on a
thorough review of the Detailed Feasibility Study (DFS) for Rio Blanco, a
summary of which was published in February 2007.

The Company is pleased to announce that the review of the DFS is nearing
completion and is in the final stages of defining parameters for a new trade off
study designed to maximize the value of the 1,257 MT resource defined at Rio
Blanco.

As the DFS considered an operation treating 25Mt per year over a 20 year life,
utilizing only 40% of the resource, Management is concerned that a number of
components of the DFS design will limit long term mine expansion and hence
prevent the full potential of this important resource being realized.

Company engineers, aided by specialist consultants that were involved in the
original DFS, are defining the parameters for the trade off study.  This study
is designed to evaluate alternative development options which will maximize
economic returns, as well as improving environmental and social aspects of the
Rio Blanco Project. The Project is one of the most significant undeveloped
copper/molybdenum resources in the world.

Key aspects of the new study will be the relocation of the Tailings Storage
Facility, and the transport options for mined products. Parameters for the new
study will be submitted to the Board in the coming weeks, following which a
decision will be made concerning the go-ahead.

It is anticipated that the new study will be completed in the second half of
2008, when a revised timetable for the Project will be announced.  Following the
results of the study the appropriate changes will be made to the DFS.

Mr Xiaodong Huang, CEO of Monterrico said: "I am delighted that we are
approaching a conclusive revision of the DFS for Rio Blanco.  Although this will
inevitably cause some delay to start the construction of the Project, I am
confident that the new options being prepared for evaluation by the trade off
study will provide opportunities to unlock considerable value from Rio Blanco
and also improve environmental and social aspects of the Project. We will
continue to keep shareholders informed of progress."



Enquiries:

Monterrico Metals plc                                   Tel: + 44 20 7776 2900

Richard Ralph (Non-Executive Chairman)

Susan Connolly (Investor Relations Manager)



Ambrian Partners Limited                                Tel: + 44 20 7634 4705

Tim Goodman


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            The company news service from the London Stock Exchange
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