MMX Announces Progress in MMX Sudeste's (AVX's) Business Plan

RIO DE JANEIRO, BRAZIL (BOVESPA: MMXM3) (TSX: XMM), pursuant to the recent events, hereby makes the following announcement:

At a meeting held on May 21, 2008, the Management has decided to alter the name of AVX Mineração e Participações Ltda. ("AVX") to MMX Sudeste Mineração Ltda. ("MMX Sudeste"). MMX acquired AVG Mineração S.A. ("AVG") and Minerminas - Mineradora Minas Gerais Ltda. ("Minerminas") through this direct subsidiary, as previously disclosed in public announcements released on December 13, 2007 and on March 3, 2008, respectively.

In a public announcement disclosed on March 3, 2008 the Company furthermore stated that it is merging the operations of AVG and Minerminas, through MMX Sudeste, in order to obtain synergies and economies of scale.

The engineering project to produce 12 million tons per year is being detailed, as announced. The basic engineering is being concluded, and shall define the amount to be invested by MMX Sudeste for achieving its plans.

The geological research progress, which shall be certified by year-end 2008, preliminarily indicates that MMX Sudeste's production may reach more than 12 million tons per year, and may even reach up to 20 million tons per year. For this purpose MMX considers additionally maintaining the two existing beneficiation plants in operation, which, after being modernized with the investments already announced, may each produce 4 million tons per year.

In anticipation to the possible above mentioned production increase, MMX is in contact with companies that operate in the same region, in search of opportunities for operational synergies, among them the construction of an exclusive rail spur at Serra Azul. Preliminary studies are under development and indicate that this investment may lead to a reduction in future operational costs.

The necessary investment for the projects is currently being detailed and will be timely announced, after obtaining the Board of Directors and Management's approval.

For additional information, please contact [e-mail].

                Nelson José Guitti Guimarães
     Executive President and Investor Relations Officer
               MMX Mineração e Metálicos S.A.

FORWARD-LOOKING STATEMENTS: This material fact contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities laws concerning 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 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.