Katanga Announces Agreement on Transfer of Mashamba West and Dikuluwe Deposits

LONDON, UNITED KINGDOM, Feb 08 (MARKET WIRE) --
Katanga Mining Limited (TSX: KAT) ("Katanga") reports that KFL Limited
(which is 100 per cent owned by Katanga), Gecamines and Kamoto Copper
Company ("KCC") have signed an agreement that sets out compensation,
security and payment in exchange for the release to Gecamines of the
portion of the KCC concession that represents the Mashamba West and
Dikuluwe deposits. These deposits were not scheduled to start producing
oxide ores until 2020 and 2023 respectively. KCC is a joint venture
between Gecamines, a Democratic Republic of Congo state-owned mining
company, and KFL Limited.

The agreement provides for Gecamines to replace these deposits by July 1,
2015 with other deposits having a total tonnage of 3,992,185 tonnes of
copper and 205,629 tonnes of cobalt according to international and TSX
standards, or pay over time, beginning July 1, 2012, a total of US$825
million from Gecamines royalties and dividends in KCC. The parties have
agreed to fix the equivalent value of the deposits released by reference
to the 2006 feasibility study. The agreement set this amount at US$825
million, subject to a joint review by the parties.

At July 1, 2012, the parties will calculate the proportion of the
reserves replaced by Gecamines at that date. Dividends and royalties
payable to Gecamines by KCC from this date will be paid into an escrow
account to secure future payments by Gecamines. As at July 1, 2015, the
parties shall recalculate the amount of reserves transferred to KCC. In
the event Gecamines has not completely replaced the deposits, the balance
of the amount due shall be paid in cash. Any cash thus remaining due
shall be paid to KCC using the funds in the escrow account, and any
remaining payments due will be met from Gecamines future revenues from
KCC, until full payment has been made.

To assist Gecamines in finding replacement deposits, KCC and Gecamines
shall conduct jointly managed exploration to be funded initially by KCC
and reimbursed by Gecamines out of its revenues from KCC.

In addition to the agreement reached with Gecamines above, the parties
agreed to complete a definitive agreement within the next 90 days
addressing transfer of the exploitation permits and mining rights over an
agreed area, to encompass the approximate current concession area, from
Gecamines to KCC.

In exchange for this transfer, which will result in KCC holding the
assets directly, KCC will pay to Gecamines as compensation US$35 per
tonne of remaining copper reserves identified in the feasibility study.
This sum, which is approximately US$135 million, will be paid over time
on a basis to be agreed in the definitive agreement and will be based on
the cashflows available to KCC. The agreement will also address various
other matters relating to the joint venture, including the management of
the exploration programme.

To learn more about Katanga Mining Limited, please visit our website at
www.katangamining.com.

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 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.

Contacts:
Katanga Mining Limited
Arthur H. Ditto
President & Chief Executive Officer
+44 (0)7983 447774

Katanga Mining Limited
Anu Dhir
Vice President, Corporate Development
+44 (0)7983 438942
Website: www.katangamining.com

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