GULF MANGANESE CORPORATION

Gulf Manganese Corporation Limited is an Australian registered company listed on the Australian Securities Exchange (ASX: GMC) with its head office in Perth, Western Australia. The company, through its fully owned subsidiary International Manganese Group (IMG), the 100% owner of PT Gulf Mangan Grup, plans to build the first ferromanganese (FeMn) smelting hub in Timor, Indonesia. It has long been recognised that there are many high grade, 48% manganese outcrops in the islands of Indonesia and s... pecifically in and around Timor including the island of Flores. Indonesian “Value Adding” laws introduced in 2009 prevent the export of minerals unless the mineral has been “upgraded” in Indonesia.Whilst there are small silicon manganese smelters in Indonesia, there is not any significant facility for the production of high grade ferro manganese alloy. Gulf Manganese has identified the opportunity to build a ferromanganese smelting hub in Timor near the town of Kupang. This will involve the purchase of Indonesian manganese ores at the smelter gate, processing of the ores in the smelter to a ferromanganese alloy and the sale of ferromanganese alloys to the world’s markets.The high grade of the Indonesian ores and the opportunity to source all other inputs locally including limestone, coal and iron ore more than offset the current ferromanganese alloy prices which continue to be at a low point in the cycle. The proposed smelting complex will comprise 8 furnaces to be built in stages, with a modular design. The modular facility will allow for expansion of processing facility at minimal cost. Gulf Manganese is totally committed to the ongoing safety and welfare of its employees across all divisions of the business. Best practice safety standards will be in place for all employees and suppliers. Gulf will be investing significantly in the development of training and education programmes for the local Kupang workforce to ensure safety procedures and standards are upheld, as well as educational programs for local miners in modern mining techniques to improve safety and reduce environmental impact.More