Katanga Project Update and 2Q 2008 Financials

Katanga Mining Limited (TSX:KAT) ("Katanga" or the "Company") today gives a
project update and announces its financial results for the quarter ending June
30, 2008.


Highlights

- Copper cathode production during the quarter of 5,314 tonnes; cobalt metal
production of 120 tonnes after production began on May 3; and production of
13,463 tonnes of concentrate.


- For accounting purposes, commercial production at Kamoto Copper Company
("KCC") commenced June 1, 2008.


- Total net sales for the quarter of US$48.9 million comprising $19.5 million
from copper, $2.6 million from cobalt and $26.8 million from concentrate sales.


- Net loss for the quarter of US$9.9 million (US$0.05 per share), compared with
a net loss for the second quarter of 2007 of US$14.0 million (US$0.18 per
share).


- Positive operating cash flow of US$4.0 million for the quarter.

- US$352.2 million cash on balance sheet at June 30, 2008.

- Phase II rehabilitation on schedule.

Outlook

- Forecast payable production for 2008 has been reduced from 33,500 tonnes of
copper and 2,900 tonnes of cobalt to 27,500 tonnes of copper and 2,700 tonnes of
cobalt.


- Feasibility study for the expansion project on track to be completed near the
end of third quarter.


- DRC Copper and Cobalt Project ("DCP") to be merged into KCC before the end of
2008.


- Improving filtration performance together with scheduled additions to
concentrate filtration and copper/cobalt residue filtration plus additional
sulfide concentrate roasting capacity in the third quarter will significantly
improve throughput, copper/cobalt recovery, and refined metal production at
Luilu for the balance of the year.


- Improving workforce skills and productivity is and will continue to be an
important and challenging priority.


- The Memorandum of Understanding ("MoU") announced August 5, 2008 sets forth
the framework for KAT to get the full operational and financial benefit from the
merger with Nikanor.


Arthur Ditto, Katanga CEO, had the following comments concerning results:
"Copper cathode production steadily increased during the second quarter, and
continues to do so as filtration performance and capacity in the copper leach
circuit improves. We were pleased to see cobalt metal production start in May
and to complete our first cobalt exports to Europe at the end of June. The
program to drive increased output from the Kamoto mine during the year is solid,
and until now, the mines have not limited copper and cobalt production.


"However, with Luilu output continuing to ramp higher, the miners will need to
take their performance up a few notches. While the plant's copper production
during the quarter was in line with our May 14 forecast, cobalt output was less
than expected. This, together with current assessments of the time required to
add needed residue filtration capacity at the plant, make it prudent to reduce
our production outlook for 2008. This year is the first budget cycle for a newly
formed site organization, and it is certainly an intense learning curve for all
involved to understand workforce limitations and issues associated with
throughput related bottlenecks at Luilu. Although our production forecasts for
the year are reduced, we expect to be profitable in the second half of 2008.


"Engineering and construction work for Kamoto Phase II and for the first module
of the new metallurgical section at Luilu is progressing well, and our full
feasibility study for the integrated and expanded project is on track to be
available near the end of the third quarter.


"The MoU announced on August 5th establishes the framework for amending our
JointVenture Agreement with Gecamines and addresses requirements coming from the
Government mining review. We have now outlined the way forward to get full
operational and financial benefit from the merger with Nikanor."


Operations review

Copper cathode production for the quarter increased 35% from first quarter to
5,314 tonnes, which was in line with our May 14 forecast. Steady progress to
increase filtration capacity along with commissioning a second retrofitted
roaster at Luilu, will maintain the upward production trend throughout the year.
However, current estimates of the timing for adding residue filtration at Luilu
show that full year copper cathode output will be 24,700 tonnes, a reduction of
19% from our guidance at the end of the first quarter. Cobalt metal production
began in May, and the current forecast for 2008 is 1,100 tonnes, a reduction of
500 tonnes from our May 14 guidance. Forecast concentrate production has
increased from 43,500 tonnes for the year to 54,000 tonnes, and is expected to
add 2,800 tonnes of payable copper, a reduction of 200 tonnes, and 1,600 tonnes
of payable cobalt, an increase of 300 tonnes.


Kamoto Underground Mine

Kamoto production during the quarter was 125,505 tonnes of ore. Underground
operations began about a year ago and production has steadily increased. July
production of 52,000 tonnes was a record. Ore grade during the quarter was 3.94%
Cu and 0.45% Co. The mine's technical, operating, and maintenance organizations
continue to improve. Similarly, new production areas are being serviced, and
back filling capability is being enhanced. Supply chain performance is
strengthening and warehouse inventories to support the operation are now
approaching satisfactory levels.


Open pit mining

Production from the Musonoie-T17 and Tilwezembe open pits exceeded plans during
the quarter. Musonoie-T17 produced 103,791 tonnes of ore, and Tilwezembe, which
recommenced mining ore following the restart of the Kolwezi Concentrator in
early April, produced 156,632 tonnes. Cobalt grade from Musonoie-T17 was above
forecast, while copper grade was lower than expected. The mine is now getting
deeper and the percentage of "copper rich ore" is increasing. Datamine modelling
and geological control systems are now functional for the open pits, enabling
better production forecasting. An updated mineral resource model for Tilwezembe
and Musonoie-T17 was completed at the end of June, producing an optimized mining
plan which will help reduce mining costs.


Kolwezi Concentrator

The Kolwezi Concentrator (KZC), which was shut down during much of the first
quarter for safety and performance-related improvements, resumed operation on
April 9. During the quarter, KZC processed 201,419 tonnes of ore and produced
13,463 tonnes of concentrate. While production was well ahead of forecast,
metallurgical performance was below expectation. Refinements to improve
metallurgical accounting, operating procedures, and ore blending are underway to
enhance results. Audits are underway at both Tilwezembe and KZC to reconcile
differences reported between mine and mill feed grades.


Kamoto Concentrator

The Kamoto Concentrator (KTC) processed 218,530 tonnes of ore during the quarter
from which 21,943 tonnes of concentrate was produced. Concentrator capacity
exceeds current ore supply and satisfactorily meets planned availability and
recovery targets.


Luilu Metallurgical Plant

Luilu produced 5,314 tonnes of copper cathode. The cobalt circuit was completed
during the quarter and 120 tonnes of cobalt metal was produced. Copper
production has consistently increased during the last three quarters as plant
debottlenecking and related improvements are made.


Copper cathode and cobalt metal production will continue increasing as the
following improvements are made during the third quarter:


- Increases in the filtration capacity of the concentrate reception section of
the plant


- Increases in the copper circuit residue filtration capacity

- Start-up of a second rehabilitated roaster

- Enhancement of the cobalt hydroxide precipitation filtration capacity

- The addition of a second bay in the cobalt tank house, doubling the number of
operating cells to 64


Rehabilitation Project update

Phase II of the Kamoto rehabilitation project is expected to be completed, as
planned, by the end of 2008, providing a production capacity of 70,000 tpa Cu
and 3,000 tpa Co. As part of Phase II, a third cascade mill is being
rehabilitated and 58 flotation cells are being added to the circuit in the
Kamoto Concentrator. At the Luilu Metallurgical Plant, a new roaster is being
constructed and leaching and electro-winning capacity will be doubled. To date,
9 of 14 tanks in the leach and CCD areas as well as 10 of 54 electro-winning
cells are complete. At KTC, 12 of 58 float cells were completed.


In parallel with the Kamoto project, the Joint Venture is developing the KOV
open pit and building a new leach and SX/EW facility. Construction of the acid
plant and the first 80,000 tonne per year module of this facility commenced in
June 2008.


The feasibility study for the expansion project is on track to be completed near
the end of the third quarter. As part of the study, the Company has mandated a
group of four banks to arrange and underwrite Senior Debt Facilities in an
amount up to US$550 million. Final approval and signing of the facility
agreement is anticipated by year end 2008.


Sustainability activities

Local community investment projects continue to be a priority. A MoU with
Project Cure, a U.S.-based non-profit organization, was signed during the
quarter. This agreement, covering a five-year period will see the Company
sponsor the shipment of one container of medical equipment to Katanga Province
annually and in partnership with other participating organizations, lead to
donation of an estimated $10 million worth of medical equipment and supplies to
medical facilities in the area. Katanga also finalized planning and agreements
covering malaria control and community inoculation initiatives which will
deliver broad-based benefits to Kolwezi and its surrounding communities and
expand on its bed-net distribution program and health education initiatives.


The farm established by Katanga has now matured to the extent that it will be
sustainable by year-end, following the introduction of livestock and better
marketing of produce into the local area. The Company has also assisted the
community of Musonoi with the reestablishment of potable water supply and the
refurbishment of existing transformers to re-introduce electricity to
households.


Conference call and webcast

Katanga will hold a conference call and webcast at 8.30am Eastern Time (Toronto)
/ 1.30pm BST (London) on August 12, 2008 to provide a project update and discuss
its 2Q financials.


The call will be hosted by Arthur Ditto, President and Chief Executive Officer,
who will be joined by Stephen Jones, Senior Vice President and Chief Financial
Officer. Senior site personnel will be available for questions.


Details of how to access the call and webcast are below. A news release, slide
presentation, financial statements and management discussion and analysis will
be available on Katanga's website, www.katangamining.com, prior to the call.


Katanga's Financial Statements and Management Discussion and Analysis for the
quarter are filed on SEDAR, www.sedar.com.




Conference call/webcast details:

Date:           August 12, 2008
Time:           8.30am Eastern Time (Toronto) / 1.30pm BST (London)
Dial in:        1800 608 0547 (Canada Free Call)
                0808 109 0700 (UK Free Call)
                1866 966 5335 (USA Free Call)
                [phone] (Standard International)
ID:             Katanga Mining Limited (please quote this when dialing in)
Webcast:        An audio webcast with slide presentation will be available
                at the following link:
                http://services.choruscall.eu/links/katanga080812.html



Replay details:

The call will be available for replay until midnight on August 18, 2008 at the
following number: [phone] (International Access Number), 6736718
Replay PIN Number. The webcast will be archived at the same location as above
for six months.


Katanga Mining Limited operates a major mine complex in the Democratic Republic
of Congo producing refined copper and cobalt. The company has the potential to
become Africa's largest copper producer and the world's largest cobalt producer,
with a targeted annual output of over 300,000 tonnes of refined copper and over
30,000 tonnes of refined cobalt by 2011. Katanga is listed on the Toronto Stock
Exchange under the symbol KAT.


The following table sets out a summary of the quarterly results for the Company
for the last eight quarters:




                        2006     2006     2007     2007     2007     2007
                          Q3       Q4       Q1       Q2       Q3       Q4
Statement of
 Operations
 and Deficit
(millions except
 where
 indicated)
Total revenues           $ -      $ -      $ -      $ -      $ -      $ -
Cost of sales              -        -        -        -        -        -
Total revenues less
 cost of sales             -        -        -        -        -        -
General
 administrative
 and other expenses      3.6      2.5      3.9     11.4     10.9      7.8
Debenture Interest         -      1.6      3.8      4.1      6.2      5.0
Interest income         (0.9)    (2.0)    (2.3)    (1.5)    (0.7)    (0.1)
Net Loss                 2.7      2.1      5.4     14.0     16.4     12.0
Loss per common
 share                $ 0.03   $ 0.02   $ 0.07   $ 0.18   $ 0.21   $ 0.15

Realized copper
 price (per lb)            -        -        -        -        -        -
Realized cobalt
 price (per lb)            -        -        -        -        -        -
Realized concentrate
 price (per tonne)         -        -        -        -        -        -

Total copper sold
 (tonnes)                  -        -        -        -        -        -
Total copper
 produced
 (tonnes)                  -        -        -        -        -      340
Total cobalt sold
 (tonnes)                  -        -        -        -        -        -
Total cobalt
 produced
 (tonnes)                  -        -        -        -        -        -
Total concentrate
 sold
 (tonnes)                  -        -        -        -        -        -
Total concentrate
 produced (tonnes)         -        -        -        -        -        -
--------------------------------------------------------------------------
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Balance Sheet
Cash and cash
 equivelants         $ 122.7  $ 197.0  $ 166.0  $ 100.6   $ 37.9  $ 100.7
Current assets         126.2    201.7    170.7    110.8     54.3    128.5
Mineral interests
 and other assets       19.0     48.4     78.3    143.9    223.2    320.3
Total assets           145.2    250.1    249.0    254.7    277.5    448.8
Current liabilities      4.0      9.7     12.1     16.5     39.8     67.2
Long-term debt             -     93.5     94.2    108.0    116.4    267.5
Other long-term
 liabilities               -        -        -        -        -        -
Total liabilities        4.0    103.2    106.3    124.5    156.2    334.7
Shareholders' equity   141.2    146.9    142.7    130.2    121.3    114.1
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Cash Flow
Operating activities    (0.9)    (0.2)    (0.6)    (2.9)    (6.7)   (13.8)
Financing activities     0.4     96.4        -      0.2      6.1    150.0
Investing activities    (8.2)   (22.2)   (30.5)   (62.6)   (62.3)   (72.8)
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                            2008       2008
                            Q1(1)      Q2(2)
Statement of Operations
 and Deficit
(millions except where
 indicated)
Total revenues            $ 90.2     $ 48.9
Cost of sales              105.0       32.6
Total revenues less cost
 of sales                  (14.8)      16.3
General administrative
 and other expenses         19.9       26.2
Debenture Interest           4.7        4.6
Interest income             (7.1)      (5.8)
Net Loss                    17.4        9.9
Loss per common share       0.10     $ 0.05

Realized copper price
 (per lb)                 $ 3.58     $ 3.71
Realized cobalt price
 (per lb)                    $ -    $ 32.00
Realized concentrate
 price (per tonne)       $ 4,306    $ 4,301

Total copper sold
 (tonnes)                  1,996      3,892
Total copper produced
 (tonnes)                  3,946      5,314
Total cobalt sold
 (tonnes)                      -         30
Total cobalt produced
 (tonnes)                      -        120
Total concentrate sold
 (tonnes)                 19,630      7,897
Total concentrate
 produced (tonnes)         2,903     13,463
--------------------------------------------
--------------------------------------------

Balance Sheet
Cash and cash
 equivelants             $ 463.4    $ 352.5
Current assets             612.1      476.0
Mineral interests and
 other assets            2,431.8    2,599.8
Total assets             3,043.9    3,075.8
Current liabilities        110.2      130.0
Long-term debt             266.4      271.8
Other long-term
 liabilities               554.5      563.0
Total liabilities          931.1      964.8
Shareholders' equity     2,112.8    2,111.0
--------------------------------------------
--------------------------------------------

Cash Flow
Operating activities        10.9        4.0
Financing activities           -          -
Investing activities       362.2     (116.0)
--------------------------------------------
--------------------------------------------

1. Nikanor Plc results included from January 11, 2008 upon acquisition.

2. Commercial production commenced June 1, 2008 for the Kamoto Project.



The following production information sets out the quarterly results for the
company since initial mining began in the quarter ended June 30, 2007.




                              2007      2007      2007      2008      2008
                                Q2        Q3        Q4        Q1        Q2
Cobalt and Copper
 Production Statistics (1)
Underground Mining
Waste mined (tonnes)         3,469     4,029     5,972    17,670    19,570
Ore mined (tonnes)          27,995    42,147   105,367   117,948   125,505
Copper grade                  2.91      2.60      3.86      4.08      3.94
Cobalt grade                  0.44      0.46      0.43      0.37      0.45
Open Pit Mining
Waste mined (tonnes)       512,574 1,400,998 1,610,830 1,250,836 1,652,307
Ore mined (tonnes)               -    36,986    63,705    95,055   103,791
Copper grade                     -      1.18      1.18      1.35      1.75
Cobalt grade                     -      0.50      0.50      0.83      0.80
Concentrator
Ore processed (tonnes)           -    71,247    84,726   206,615   218,530
Concentrate produced
 (tonnes)                        -     4,571     8,247    23,786    21,943
Metullurgical Plant
Copper produced (tonnes)         -         -       340     3,946     5,314
Cobalt produced (tonnes)         -         -         -         -       120
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Concentrate Production
 Statistics (2)
Open Pit Mining
Waste mined (tonnes)                                   1,998,161 1,598,767
Ore mined (tonnes)                                        50,718   156,632
Copper grade                                                1.30      1.36
Cobalt grade                                                1.39      1.32
Concentrator
Ore processed (tonnes)                                    34,963   201,419
Concentrate produced
 (tonnes)                                                  2,903    13,463
Copper grade in
 concentrate                                               11.51     11.72
Cobalt grade in
 concentrate                                                7.03      5.48
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1. Commercial production did not commence until June 1, 2008.

2. Concentrate production was acquired from Nikanor Plc and only the
   production results relating to operations from the acquisition date are
   shown.