Katanga Progresses Consolidation of Joint Ventures

Katanga Mining Limited (TSX:KAT) ("Katanga") reports that representatives of
Kamoto Copper Company ("KCC") and DRC Copper and Cobalt Project ("DCP"), the
joint venture companies in which it holds a 75 per cent interest, are today
meeting in Lubumbashi with representatives of Gecamines, its joint venture
partner, on matters relating to consolidating the DCP joint venture into KCC.
Gecamines is a Democratic Republic of Congo state-owned mining company.


The two existing joint venture agreements are nearly identical and it is
intended to include where necessary provisions of the DCP agreement as
amendments to the KCC agreement. No major changes to the terms are anticipated.
These negotiations contemplate the consolidation of the respective mining
concessions/licences into a single concession to be held directly by KCC.


As part of these negotiations, a transaction is contemplated whereby the
Dikuluwe and Mashamba West deposits in the southwest portion of the KCC
concession, which were scheduled for mining approximately 12 and 15 years from
now respectively, will be transferred to Gecamines. It is contemplated that any
transaction will be on commercial terms reflecting full value of the assets
transferred.


Katanga Mining Limited operates a major mine complex in the Democratic Republic
of Congo. The company has the potential to become Africa's largest copper
producer and the world's largest cobalt producer, with a targeted annual output
approaching 400,000 tonnes of copper and 40,000 tonnes of cobalt by 2011.


Katanga is listed on the Toronto Stock Exchange under the symbol KAT.