Water Transport Agreement

RNS Number:4263K
Monto Minerals Ltd
13 October 2006



                         MONTO  SIGNS  WATER  TRANSPORT
                       AGREEMENT  FOR GOONDICUM  PROJECT



Monto Minerals wholly owned subsidiary, Monto Resources Pty Ltd has entered into
a Water Transport Agreement with the Queensland Government's SunWater for the
transport of water to the Goondicum project in central Queensland.  SunWater is
a leading water industry company providing water infrastructure and supply
services throughout Queensland, Australia and the region.

Under the Agreement SunWater will build, own and operate a 35km pipeline to
transport water to the Goondicum project from Monto's bores in the Mulgildie
Basin to the south of Monto.  The pipeline capacity has been designed to meet
the water needs of the Goondicum project for up to 25 years and will also
provide supplementary domestic and stock supply for landholders as part of
compensation agreements.  Design detail, survey and procurement activities have
already commenced and construction of the water pipeline is scheduled for
completion in late May 2007.

Announcing the Agreement today, Monto Chief Executive Geoff Moore said that the
SunWater Agreement was an important milestone in the ongoing development of the
Goondicum project.

"Site works at the multi-product Goondicum Industrial Minerals project commenced
in August this year and construction of the Goondicum processing plant is
scheduled for completion in April/May 2007.  Commissioning of the plant will
commence upon the delivery of water from the pipeline."

Goondicum is scheduled to commence sales of high quality industrial minerals to
Australian and international customers in the second half of calendar 2007.


About Monto Minerals

Monto Minerals Limited is an emerging producer of industrial minerals with
substantial in-ground resources at Goondicum in central Queensland.

The Goondicum Project will be a multi-product producer of high quality
industrial minerals.  Core products are feldspar for glass making, ilmenite for
paint, paper and plastic pigment, apatite for organic fertiliser and
titanomagnetite for coal washing.  Ground feldspar for paint and powder provides
a further potential product.

The project features a large deposit with a 25 years resource life, a simple
mining operation and fully trialled processing in a pilot plant using proven
technology.

The project will be important to the Monto region, with 50 people employed
during the construction phase and 40 employed directly in continuing operations
at the mine and the washing facility to be built at Dakiel.

Commercial production is scheduled to start in June 2007, with sales for
Australian and international customers to commence in the second half of
calendar 2007.


Enquiries to:

Geoffrey Moore
Monto Minerals Ltd [phone]

Richard Brown
Ambrian Partners Limited [phone]




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