ERAMET and Mineral Deposits Limited to Create a Joint-Venture in the Mineral Sands Sector

ERAMET (PARIS:ERA) and Mineral Deposits Limited (TSX:MDM)(ASX:MDL) ("MDL")
announced today that they have signed a Memorandum of Understanding for the
creation of a joint venture to combine ERAMET Titanium & Iron ("ETI") which
operates the Tyssedal titanium slag and high purity pig iron plant in Norway,
and Grande Cote Mineral Sands project ("Grande Cote"), located in Senegal, for
which construction will commence in the next quarter.


The combination of ETI with Grande Cote would create a new major player in the
mineral sands (ie titanium dioxide and zircon) industry and would give the new
entity the option to become a vertically integrated titanium feedstock producer,
with the Tyssedal plant benefiting from a new source of high quality ilmenite
supply, while Grande Cote would be able to secure the sale of most of its
ilmenite production.


Under the terms of the Memorandum of Understanding, ERAMET and MDL have entered
into exclusivity arrangements to finalize formal documentation under which
ERAMET and MDL would both hold 50% of the shares of the newly created entity.
ERAMET would contribute to the joint venture 100% of its shares in ETI and cash
of US$30m, and MDL would contribute its 90% participation in the Grande Cote
Mineral Sands project, the other 10% of the project being held by the Republic
of Senegal.


The parties intend to finalize the formal documentation by the end of July 2011,
and complete the formation of the joint venture by the end of September 2011.


ERAMET is a leading global producer of:



--  alloying metals, particularly manganese and nickel, used to improve the
    properties of steel, 
--  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 14,000 people in 20 countries. ERAMET is part of
Euronext Paris Compartment A and is listed on the MSCI index.


ERAMET Titanium & Iron, formerly Tinfos Titan and Iron, is a 100% subsidiary of
ERAMET. The Tyssedal plant in Norway has an annual capacity of 210 000 t of
titanium dioxide slag, for use in the white titanium pigments industry. ETI is
the only European producer of slag, and a major consumer of ilmenite. A very
important co-product of this activity is high-purity pig iron (120 000 tons of
annual capacity), sold to ductile iron foundries, notably for the production of
wind mills parts.


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, located on the coast of Senegal is expected to have a
mine life of at least 20 years (based on identified reserves and resources), and
is anticipated to produce on average approximately 85 ktpa of zircon and 575
ktpa of ilmenite (and small amounts of rutile and leucoxene), making it one of
only a few major new projects globally that can take advantage of the
significant supply deficit emerging in the mineral sands sector. On-site
construction of the Project is expected to commence in the third quarter of
2011, and after a two year build, production is expected to commence late in
2013. The company also owns a minority interest in Teranga Gold Corporation, a
Toronto-based gold company.


Mineral Deposits Limited ABN 19 064 377 420