ERAMET and Mineral Deposits Limited Announce the Closing of Their Mineral Sands Joint-Venture

ERAMET and Mineral Deposits Limited ("MDL") (TSX:MDM)(ASX:MDL) announced today
that they have closed their joint venture transaction to combine ERAMET Titanium
& Iron ("ETI"), located in Norway, and MDL's Grande Cote Mineral Sands project
(the "Grande Cote Project"), located in Senegal. The effective date for
commencement of the joint venture is 1 October 2011. 


In accordance with the agreements entered into on 27 July 2011, ERAMET and MDL
both hold 50% of the shares of the joint-venture, which has been incorporated
under the name TiZir Limited ("TiZir"). ERAMET contributed 100% of its shares in
ETI and cash of US$30m to TiZir, and MDL contributed its 90% participation in
the Grande Cote Project (the other 10% being held by the Republic of Senegal).


Construction of the Grande Cote Project has already started as planned and
production is expected to commence in late 2013. The capital cost of the Grande
Cote Project, estimated at approximately US$520 million, will be financed using
ERAMET's cash contribution to TiZir, a US$45 million shareholder loan provided
by ERAMET to TiZir, a third party debt financing and equity contributions or
shareholders loans at TiZir level set up at parity between the shareholders.


ETI will benefit from a new source of high quality ilmenite for its production
of titanium slag, which provides for expansion and product diversification
opportunities. The Grande Cote Project will be able to secure off-take for the
majority of its ilmenite production. Grande Cote's zircon production will allow
TiZir to have a strong position in another attractive market. Finally, TiZir
will benefit from ERAMET's broad expertise in mining, metallurgy, logistics, R&D
and marketing, and from MDL's development expertise (having successfully
commissioned the Sabodala gold project in Senegal in 2009) and mineral sands
mining experience.


Patrick BUFFET, Chairman and CEO of ERAMET, stated that: "We are delighted to
have finalised this partnership with Mineral Deposits Limited and to have
created TiZir. ERAMET and MDL join their strengths to create a major player in
the very attractive mineral sands industry."


Nic LIMB, Executive Chairman of MDL, stated that: "The finalisation of this
joint-venture agreement with ERAMET is a key step for MDL and for the
development of the Grande Cote Project, whose construction is in line with the
scheduled timetable."


ABOUT ERAMET: 

ERAMET is a leading global producer of:



--  alloying metals, particularly manganese and nickel, used to improve the
    properties of steel, and 
    
    
--  high-performance special steels and alloys used in industries such as
    aerospace, power generation and tooling. 
    



ERAMET is also studying or developing major projects in new metals with high
growth potential such as lithium, niobium and rare earths, as well as in
recycling. The Group employs approximately 15,000 people in 20 countries. ERAMET
is part of Euronext Paris Compartment A and is listed on the MSCI index.


ETI owns the Tyssedal plant in Norway, which is the only facility in Europe
producing titanium dioxide (TiO2) slag for use in the pigment sector. Current
capacity is approximately 200ktpa of TiO2slag, and approximately 110ktpa of
high-purity pig iron as a very important co-product, which is sold to ductile
iron foundries, notably for the production of parts for windmills. Ilmenite is
the major feedstock of the plant.


ABOUT MINERAL DEPOSITS LIMITED:

Mineral Deposits Limited is an Australian-based, ASX and TSX listed mining
company developing the world class Grande Cote Mineral Sands Project in Senegal,
West Africa. Grande Cote, which is expected to commence production in late 2013,
is one of only a few major new projects globally that can take advantage of the
supply-constrained mineral sands sector.