MMX Announces Investment Plan for AVG with the Conclusion of the Acquisition

  
    
  
  
    
      MMX Mineração e Metálicos 
      S.A. (“MMX” or the “Company”) 
      (PINK SHEETS:MMXMY) (BOVESPA:MMXM3) (TSX:XMM), pursuant to article 157 
      of Law 6404/76, and CVM Instruction No. 358/02, hereby makes the 
      following announcement:
    
    
      MMX has concluded the purchase of 100% of AVG Mineração 
      S.A. (“AVG”) 
      shares, for US$224 million, as expected, in line with the MMX and AVG 
      shareholders agreement announced on July 5, 2007. The purchase price may 
      accrete by a variable portion, capped at US$50 million, subject to the 
      attainment of the necessary environmental permits for certain mining 
      rights, which may increase the mining reserves base of the acquired 
      company.
    
    
      The first installment of the purchase price, in the amount of US$44 
      million (R$79.2 million), has been paid and the remaining four 
      installments of US$45 million each will be paid on August 30th of the 
      next four years.
    
    
      MMX has found that AVG’s production capacity 
      may be increased from the current 2.3 million tons to 5.8 million tons 
      per year, given results of technical studies and due diligence performed 
      on AVG. MMX believes that AVG may increase its overall efficiency and 
      productivity, due to: 1) improvement in AVG’s 
      operational process; 2) replacement of equipments near the useful life 
      end, and; 3) implementation of maintenance procedures and routines.
    
    
      MMX’s management has approved, on this date, 
      an investment plan for AVG in 2008 and 2009, with a total estimated 
      value of US$32 million, of which US$12 million for current investments 
      and US$20 million for expansion investment.
    
    
      In the future, MMX plans to expand its investment in AVG to initiate a 
      second stage in AVG’s production capacity, 
      which should exceed the planned 5.8 million tons per year, and, for this 
      purpose, is continuing the engineering studies that will sustain the new 
      expansion.
    
    
      For more information, please contact [e-mail].
    
             Rio de Janeiro, December 13, 2007

            Luiz Rodolfo Landim Machado
Executive President and Investor Relations Officer
           MMX Mineracao e Metalicos S.A.
    
      FORWARD-LOOKING STATEMENTS: This material fact contains certain “forward-looking 
      statements” and “forward-looking 
      information” under applicable Canadian 
      securities laws concerning the proposed acquisition operation and the 
      business plan, the operations and financial performance and condition of 
      MMX, and estimated production and mine life of the acquired mineral 
      project. Except for statements of historical fact relating to MMX, 
      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 made taking into 
      consideration a number of assumptions and, therefore are 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. Assumptions upon which such 
      forward-looking statements are based include MMX being successful in 
      acquiring 100% of the issued and outstanding shares of AVG, any 
      necessary third party, regulatory or governmental approvals for the 
      acquisition operation being obtained, all required environmental and 
      other licenses being obtained and all other conditions to the completion 
      of the acquisition transaction will be satisfied or waived. Many of 
      these assumptions are based on factors and events that are not within 
      the control of MMX 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 changes 
      in market conditions, variations in ore grade or recovery rates, risks 
      relating to international operations, fluctuating metal prices and 
      currency exchange rates, changes in project parameters, the possibility 
      of unanticipated costs and expenses, failure of plant, equipment or 
      processes to operate as anticipated, the failure to obtain necessary 
      licenses or permitting, the acquired mineral project not being 
      integrated successfully or such integration proving more difficult, time 
      consuming or costly than expected, and other risks of the mining 
      industry. Although MMX has attempted to identify the 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. MMX 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.