Katanga and Glencore Announce Completion of US$265.3 Million Loan

LONDON, UNITED KINGDOM, Jan 12 (MARKET WIRE) --
Katanga Mining Limited (TSX: KAT) ('Katanga' or the 'Company') and
Glencore Finance (Bermuda) Limited ('Glencore') today announced
completion of the previously announced mandatorily convertible loan
facility of approximately US$265.3 million ('the Facility') underwritten
by Glencore (see Katanga press release December 24, 2008 for more
detail). This follows the approval by Katanga's shareholders, as
announced earlier today, of the increase in the authorized share capital
of the Company.

Funding from the Facility is available immediately and is made available
to the Company's joint-venture subsidiaries - Kamoto Copper Company (KCC)
and DRC Copper and Cobalt Project (DCP) - to meet the immediate financing
requirements of Katanga and its subsidiaries. As at today's date,
Glencore has advanced the entire US$100 million principal amount under
the Facility.

The Company, in consultation with Glencore, is seeking participations in
the Facility from existing eligible shareholders and new investors, up to
an aggregate amount not exceeding 75% of the Facility as of today's date
i.e. US$198.975m (the 'Available Facility Amount'). To the extent that
the Company receives commitments from eligible shareholders and new
investors to participate in the Available Facility Amount, such
shareholders and new investors will, on the Second Closing Date receive a
transfer of its proportional interest in the Facility from Glencore. The
Second Closing Date is expected to occur on February 9, 2009, but may
occur on an earlier date if valid commitments have been received from
investors in respect of the entire Available Facility Amount or if
otherwise agreed between the Company and Glencore.

As announced on December 24, 2008, in addition to the Facility, the
Company will require additional equity and/or debt finance in the amount
of approximately US$250 million during the first six months of 2009.

Commenting on the completion of the Facility, Hugh Stoyell, Non-Executive
Chairman, Katanga Mining said: "Given such difficult and unprecedented
conditions in the capital and commodities markets, we appreciate that
Glencore has stepped in to provide a lifeline of financial support
enabling Katanga to continue in the near-term. The Management Team and
Board will continue to actively seek the participation of eligible
investors by the second closing on 9th February. These are challenging
times for the Company but we remain confident that existing shareholders
and new investors will recognize the long-term value and prospects of our
core asset base."

About Katanga Mining Limited

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

About Glencore

Glencore International AG, based in Baar, Switzerland, is the parent
company of Glencore Finance (Bermuda) Limited and is a leading privately
held, diversified natural resources company with worldwide activities in
the smelting, refining, mining, processing, purchasing, selling and
marketing of metals and minerals, energy products and agricultural
products.

Persons who wish to obtain a copy of the Early Warning Report filed by
Glencore in connection with this transaction may obtain a copy of such
report from www.sedar.com or by contacting the persons listed above.

This press release shall not constitute an offer.

Forward-looking Information

This press release contains "forward-looking information" within the
meaning of the United States Private Securities Litigation Reform Act of
1995 and similar Canadian legislation, concerning the business,
operations and financial performance and condition of Katanga.
Forward-looking statements include, but are not limited to, statements
with respect to anticipated developments in Katanga's operations in
future periods; planned exploration activities; the adequacy of Katanga's
financial resources and other events or conditions that may occur in the
future; estimated production; the ability of Katanga to continue to
create value for its shareholders; the ability of Katanga to meet
expected financing requirements and to continue as a going concern; the
future price of copper and cobalt; the estimation of mineral reserves and
resources; the realization of mineral reserve estimates; the timing and
amount of estimated future production; costs of production; capital
expenditures; permitting time lines and permitting, mining or processing
issues; currency exchange rate fluctuations; government regulation of
mining operations; information concerning the interpretation of drill
results; success of exploration activities; environmental risks;
unanticipated reclamation expenses; title disputes or claims; and
limitations on insurance coverage. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology
such as "plans", "expects" or "does not expect", "is expected", "budget",
"scheduled estimates", "forecasts", "intends", "anticipates", "does not
anticipate", or "believes", or variations of such words and phrases or
state that certain actions, events or results "may, "could", "would",
"might", "will" or "will be taken", "occur", or "be achieved".

Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made, and they are subject
to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements
of Katanga to be materially different from those expressed or implied by
such forward-looking statements, including but not limited to risks
related to failure to obtain new investor commitments for all or a
portions of the Available Facility Amount;: unexpected events during
construction, expansion and start-up; variations in ore grade, tonnes
mined; delay or failure to receive board or government approvals; timing
and availability of external financing on acceptable terms; risks related
to international operations; conclusions of economic evaluations; changes
in project parameters as plans continue to be refined; future prices of
copper and cobalt; possible variations in ore reserves, grade or recovery
rates; failure of plant, equipment or processes to operate as
anticipated; political unrest and insurrection; acts of terrorism;
accidents, labor disputes and other risks of the mining industry; delays
in the completion of development or construction activities, as well as
those factors discussed herein or referred to in the current annual
Management's Discussion and Analysis of Katanga filed with the securities
regulatory authorities in Canada and available at www.sedar.com. Although
management of Katanga has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results
not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated
in such statements. Accordingly, readers should not place undue reliance
on forward-looking statements. Katanga does not undertake to update any
forward-looking statements that are incorporated herein, except in
accordance with applicable securities laws.

Contacts:
Katanga Mining Limited
Steven Isaacs
Interim CEO
+44(0) 207 440 5824

Katanga Mining Limited
Nick Brodie
CFO
+44 (0) 7983 447 775

Katanga Mining Limited
Anu Dhir
VP, Corporate Development
+44 (0) 207 440 5822

Katanga Mining Limited
Nigel O'Connor
Manager Communications
+44 (0)7508 058 828

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