Joint Ventures Update

RNS Number:9428K
New Millennium Resources NL
12 May 2003


                          New Millennium Resources NL

                             Joint Ventures Update

New Millennium Resources NL ("NMR") has today posted to shareholders the
following newsletter:

"2003 is shaping up to be an exciting year for NMR as the company emerges from
an eventful first quarter.

Foremost is the news that NMR has entered negotiations with a joint venture
partner with niobium processing and sales expertise to participate in the
Sarfartoq niobium project. It is anticipated this will reduce both the upfront
capital and development time requirements of the project, allowing an earlier
return to shareholders.

SARFARTOQ LICENCE AREA EXPANDED

NMR's Sarfartoq Licence area has been expanded from its original 104 sq km to
765 sq km. The expansion was the result of combining the areas of the Sarfartoq
Licence (104 sq km), the Innajuattoq Licence (364 sq km) and the addition of new
additional ground that is prospective for both niobium and diamonds.

JOINT VENTURE WITH CHINESE PROCESSOR

A Memorandum of Understanding (MOU) has been signed with one of China's largest
niobium producers. The Chinese company has 38 years experience in niobium
processing and the aim of the MOU is to form a joint venture (JV) processing
plant in China.

This move will enable NMR to leapfrog its project to being a niobium oxide
processor, without the cost and learning curve of building its own plant.

There are synergies and mutual benefits for both companies in this JV. The
Chinese partner does not have access to a niobium mine, but they have an
operational plant that is an ongoing concern, so NMR will immediately become a
processor once the JV is completed.

Another benefit is that the JV can source raw material from other suppliers to
feed into the plant, without waiting for NMR's Greenland mine to come on stream.
The JV will jointly mine NMR's Greenland deposit, whilst NMR will take care of
ongoing exploration. Any further discovery of additional ore will be "invested"
into the JV and the Chinese partner will then top up the equivalent in cash to
maintain their equity position.

A combination of both NMR's proprietary process and the Chinese process to
produce high-purity niobium oxide will result in significant cost reduction in
the production cost for the JV.

The Chinese partner will off-take a significant percentage of the JV plant's
output (at market price) and the remainder can be sold within China itself and
elsewhere. The directors consider the market for high purity niobium oxide in
China to be huge.

It is the intention of NMR and its Chinese partner for the JV to become the
world's leading high-purity niobium oxide producer.

Both parties are currently undertaking due diligence and negotiating the final
terms of the JV Agreement.

diamond kimberlites discovered

It has been discovered that Diamond bearing kimberlites exist in NMR's Sarfartoq
license area. The Danish Geological Survey has ranked the Sarfartoq area as one
of the best diamond bearing areas in Greenland. Hyperspectral surveys (for
identifying outcropping kimberlites) have been flown over all of NMR's ground.
This area is very prospective for a diamond joint venture.

NMR is finalising negotiations with a Canadian listed company, specialising in
diamonds, to carry out exploration on areas prospective for diamonds within the
Sarfartoq licence area. A formal joint venture agreement is currently being
drafted.

We will keep you informed of developments on both these joint ventures.

For further information:

If you have any further questions, please contact me on [phone] or email
[e-mail]



Chong Kiat Lim

Managing Director


For further information on NMR, please visit our website at
www.new-millennium.com.au "


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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