Ecometals Limited Announces Execution of Advisor Mandate to BalanTrove Management LLC

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICE OR FOR DISSEMINATION IN THE UNITED
STATES


Ecometals Limited (the "Company") (TSX VENTURE:EC)(BERLIN:GDQ)(FRANKFURT:GDQ) is
pleased to announce that it has entered into an advisory agreement with the
partners of BalanTrove Management LLC ("BalanTrove"), a New York based advisory
firm focused on corporate finance, strategic and legal issues facing small to
medium size organizations. BalanTrove will assist the Company in the evaluation
of proposals received in respect of its intention to dispose of all or a
majority interest in its Brazilian manganese assets, as well as the provision of
advice in the structuring of a transaction in the best interests of the Company
and its shareholders. The advisory agreement will terminate on September 30,
2012 but may be extended by agreement between the parties. The terms of the
mandate envisage a work fee and a transaction success fee, both to be paid in
shares and warrants issued by the Company. The work fee comprises the issuance
of an aggregate number of shares having a total value of C$15,000 over the
mandate period and that number of warrants having a total strike value of
C$40,000. The success fee comprises the issuance of an aggregate number of
shares having a total value of C$10,000 and that number of warrants having a
total strike value of C$50,000 on the same terms as the work fee warrants. The
number of shares to be issued will be based on the volume weighted average
trading price of the shares for the five-day period immediately before the
applicable date of issuance of the shares. Each warrant is exercisable into one
common share at the greater of C$0.10 per share or the Market Price (as defined
in the TSXV Corporate Finance Manual) of the Company's shares immediately prior
to the date of issue of the warrants. The warrants will be exercisable at any
time for 36 months after their date of issue. The issuance of the securities
under the advisory agreement is subject to the approval of the TSX Venture
Exchange.


All securities issued pursuant to the advisory agreement will be subject to a
four-month statutory hold period beginning on the applicable date of issuance of
the securities.


William Lamarque commented: "We welcome the assistance of BalanTrove in the
disposal process for our manganese assets in northern Brazil. Upon conclusion of
the shedding of these non-core assets the Company looks forward to being
well-positioned financially and operationally to pursue its objective of growing
into a profitable mid-tier gold producer focused in geologically prominent and
politically stable South American jurisdictions. BalanTrove's services are being
compensated solely in shares and warrants issued by the Company, demonstrating
their shared commitment to, and belief in, the Company's long term prospects of
success." 


About Ecometals

Ecometals Limited is a Canadian-listed mineral exploration and development
company focused on mineral resources in Latin America. Apart from its interests
in manganese, Ecometals also has gold exploration activities in Ecuador and
Brazil and significant iron projects in Brazil at greenfield and development
planning stages.


This news release contains forward-looking information and forward-looking
statements (collectively, "forward-looking information") under applicable
securities laws, concerning the Company's business, operations, condition and
prospects, as well as management's objectives, strategies, beliefs and
intentions. Forward-looking information is frequently identified by such words
as "may", "will", "plan", "expect", "estimate", "anticipate", "believe",
"intend" and similar words referring to future events and results, including
with respect to the issuance of securities pursuant to the advisory agreement,
the anticipated benefits of engaging BalanTrove, the Company's financial and
operational condition following completion of BalanTrove's engagement, the
Company's objective of growing into a profitable mid-tier gold producer, and the
Company's ability to dispose of some or all of its Brazilian manganese assets.
This forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause actual results to differ
materially from those expressed or implied by the forward-looking information.
Factors that may cause actual results to vary materially include, but are not
limited to, changes in general economic conditions or conditions in the
financial markets, and unanticipated operational or technical difficulties. Such
forward-looking information is based on a number of assumptions, including but
not limited to, there being no significant decline in existing general business
and economic conditions; political stability in the South American countries
where the Company conducts business. Should one or more risks and uncertainties
materialize or should any assumptions prove incorrect, then actual results could
vary materially from those expressed or implied in the forward-looking
information and accordingly, readers are cautioned not to place undue reliance
on this forward-looking information. The Company does not assume the obligation
to revise or update this forward-looking information after the date of this news
release or to revise such information to reflect the occurrence of future
unanticipated events, except as may be required under applicable securities
laws.