Minemakers Limited: Wonarah Receives Preliminary Economic Assessment Confirming Economic Potential for Major Fertiliser Produ...

Minemakers Limited ("Minemakers") (TSX:MAK)(ASX:MAK)(NAMIBIAN:MMS) commissioned
the Study by independent consultants on the technical practicality and the
economics for the development of Wonarah (Figure 1). The Study has been filed
today with Canadian securities regulators. 


The Study models the economics of the development of Minemakers' wholly-owned
Wonarah deposit and proposed downstream processing facilities to produce
superphosphoric acid or N-P fertilisers such as diammonium phosphate ("DAP"). 


The Study includes mineral resources that are not mineral reserves and do not
have demonstrated economic viability. The Study is a preliminary economic
assessment and, as such, is preliminary in nature, includes inferred mineral
resources that are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized as
mineral reserves, and there is no certainty that the preliminary economic
assessment can be realized. 


The consultants are KEMWorks, a Florida-based fertiliser industry consultancy,
for the technical aspects, and Optimum Capital, of Australia, for the financial
analysis.


While other development routes or combinations will be considered in a future
FS, the Study focussed upon two options to produce 1Mtpa of P2O5:




--  Production of 1.4Mtpa of 70% P2O5 superphosphoric acid ("SPA") by the
    Improved Hard Process ("IHP"); or 
--  Production of 2Mtpa of DAP/MAP via a conventional Wet Acid Process
    ("WAP"). (Figure 2)



The project economics for these two base case alternatives are presented in the
following tables.


Table 1: Summary Financial Outcomes



----------------------------------------------------------------------------
                                                           WAP              
                                                    Fertilizer       IHP SPA
----------------------------------------------------------------------------
Mineralized Material Mined                  Mtpa           7.0           6.5
----------------------------------------------------------------------------
SPA Sold                                    Mtpa                        1.46
----------------------------------------------------------------------------
DAP Sold                                    Mtpa          2.24              
----------------------------------------------------------------------------
Mine Life                                  Years            20            20
----------------------------------------------------------------------------
Net Revenue                                  A$M        28,303        21,482
----------------------------------------------------------------------------
Operating Cost                               A$M        17,633        11,505
----------------------------------------------------------------------------
Upfront Capital Cost                         A$M         2,464         1,691
----------------------------------------------------------------------------
Cashflow Before Tax                          A$M         6,981         7,359
----------------------------------------------------------------------------
NPV Pre-tax Ungeared (8%)                    A$M         1,836         2,350
----------------------------------------------------------------------------
IRR Pre-tax Ungeared                           %            17            24
----------------------------------------------------------------------------
Operating Margin                               %            36            45
----------------------------------------------------------------------------
Payback                                    Years             7             6
----------------------------------------------------------------------------



Table 2: Project Annual Operating Margins



----------------------------------------------------------------------------
                                                               WAP       IHP
----------------------------------------------------------------------------
Average Annual Revenue                               A$M     1,378     1,037
----------------------------------------------------------------------------
Operating Costs                                                             
  Mining                                             A$M       116       107
  Processing                                         A$M       658       320
  Logistics                                          A$M       108       147
  Carbon Costs                                       A$M       NIL       1.3
----------------------------------------------------------------------------
  Total                                              A$M       882       575
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Average Annual Operating Cashflow                    A$M       497       462
----------------------------------------------------------------------------



The financial analysis used current US dollars product prices and a 95 cent
A$/US$ exchange rate.


MINERAL RESOURCE ESTIMATES

At a 10% P2O5 cut off grade the mineral resource estimate relied upon in the
Study is summarized as following:




----------------------------------------------------------------------------
Deposit                                 Category     Tonnes (Mt)    P2O5 (%)
----------------------------------------------------------------------------
Main Zone                               Indicated            252        18.2
                                        Inferred             395        18.0
----------------------------------------------------------------------------
Arruwurra                               Indicated             51        18.3
                                        Inferred              84        16.0
----------------------------------------------------------------------------
Combined                                Indicated            303        18.2
                                        Inferred             479        18.0
----------------------------------------------------------------------------



(NB: Rounding may result in apparent discrepancies in total figures.)

THE SPA OPTION

This is conceptually preferred, as it has significantly lesser capital and
operating costs, greater NPV and IRR, and could produce a readily marketable and
superior product to merchant grade phosphoric acid ("MGA").


However, before that development route can be selected, JDCPhosphate Inc
("JDC"), the holder of the patent for the IHP, must prove its ability to produce
at commercial scale. JDC is raising capital to construct and operate a
Demonstration Plant in Florida and aims to have it completed around the end of
2012. Minemakers owns 6.67% of JDC and holds the sole Australian rights to the
IHP technology for a term of 7 years.


Under this development scenario, Minemakers would undertake relatively simple
beneficiation on site and also construct the IHP kilns at Wonarah. The SPA would
be taken in tankers by road to near Tennant Creek and would then be railed to
the export port of Darwin, or to southern Australian markets.


Asia currently imports over 3Mt of P2O5 as acid, and demand is anticipated to
increase.


The Study uses an SPA price of US$1,000/t.

THE DAP/MAP OPTION

In this alternative, a more conventional processing route would be taken. After
mining, the ore would be beneficiated on site and then transported via a slurry
pipeline to a factory site adjacent to the railway in the vicinity of Tennant
Creek.


Sulphuric acid would be manufactured from the burning of imported sulphur, and
the phosphate slurry and the acid would be used to manufacture MGA by the usual
wet acid process ("WAP").


Imported ammonia would then be used to make N-P fertilisers such as MAP and DAP.

The Study used a DAP price of US$600/t. 

FUTURE WORK

Minemakers believes that the results of the Study justify the ongoing commitment
to a full FS. 


NON-IFRS MEASURES

Minemakers included the non-IFRS measures NPV and IRR in this press release, as
presented in the Study. Each term is defined in full in the Study and reference
should be had thereto. Minemakers believes that these measures provide investors
with an improved ability to evaluate the technical information presented.
Non-IFRS measures do not have any standardized meaning prescribed under IFRS.
Therefore they may not be comparable to similar measures employed by other
companies. The data is intended to provide additional information and should not
be considered in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. 


For further information on the Wonarah Project, the Study and further
assumptions and qualifications please refer to the Minemakers' technical report
pursuant to NI 43-101 entitled "Preliminary Economic Assessment for Wonarah
Phosphate Project, Northern Territory, Australia", dated September 2012 and
available on the Minemakers' website and www.sedar.com.


The information in this release that relates to Exploration Results, cut off
grades, project background and Minemakers Comments on the estimates is based on
information prepared under the supervision of Andrew Drummond, who is Executive
Chairman of Minemakers and a Fellow of The Australian Institute of Mining and
Metallurgy and a Member of the Australian Institute of Geoscientists. Mr
Drummond has sufficient experience deemed relevant to the style of
mineralisation and type of deposit under consideration and to the activity which
he is undertaking to qualify as a Competent Person as defined in the 2004
Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr Drummond is a 'Qualified Person' as defined in
NI 43-101 and has supervised the preparation of this release. Mr Drummond
consents to the inclusion in the news release of the matters based on his
information in the form and context in which it appears.


Information in this report that relates to the current Mineral Resource
estimates for Arruwurra and Main Zone reflects information compiled by Jonathon
Abbott who is a full time employee of MPR Geological Consultants Pty Ltd. Mr
Abbott, a member of the Australian Institute of Geoscientists, has sufficient
experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is reporting to qualify as a
Competent Person as defined in the 2004 Edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves." and as
"Qualified Person" as defined in NI 43-101. Mr Abbott has consented to reporting
of the matters based on the information compiled by them, in the form and
context in which it appears. 


Cautionary Statement Regarding Forward-Looking Information

All statements, trend analysis and other information contained in this report
relative to markets for Minemakers' trends in resources, recoveries, production
and anticipated expense levels, as well as other statements about anticipated
future events or results constitute forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of words such as
"seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and
statements that an event or result "may", "will", "should", "could" or "might"
occur or be achieved and other similar expressions. Forward-looking statements
are subject to business and economic risks and uncertainties and other factors
that could cause actual results of operations to differ materially from those
contained in the forward-looking statements. Forward-looking statements are
based on estimates and opinions of management at the date the statements are
made. Minemakers does not undertake any obligation to update forward-looking
statements even if circumstances or management's estimates or opinions should
change. Investors should not place undue reliance on forward-looking statements.


In accordance with JORC Code Clause 18, with respect to future exploration of
the phosphatic target zone, the potential quantity and grade of any discovery
conceptual in nature, there is insufficient exploration to define a Mineral
Resource and it is uncertain if further exploration will result in determination
of a Mineral Resource.


To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/mak1003fig1.pdf.


To view Figure 2, please visit the following link:
http://media3.marketwire.com/docs/mak1003fig2.pdf.


ABN 48 116 296 541