MANICOUAGAN MINERALS INC MCOUF

MAM Signs A LOI to Option Its Brabant Lake Zinc

[fredski]

October 3, 2011
Manicouagan Signs A Letter ofIntent to Option Its Brabant Lake Zinc Project in Saskatchewan to VotorantimMetals Canada Inc.
TORONTO, ONTARIO--(Marketwire -Oct. 3, 2011) - Manicouagan Minerals Inc. (TSX VENTURE:MAM) is pleased toannounce that it has signed a Letter of Intent ("LOI") with Votorantim MetalsCanada Inc. ("Votorantim") to option its 100% owned Brabant Lake Zinc Project toVotorantim.
Votorantim can earn a 60% interest by making an $80,000payment on the signing of a definitive option/joint venture agreement followedby cash payments totalling $460,000 and staged expenditures on the projecttotalling $2,550,000 over a three year period. The LOI also provides for anexpenditure commitment of at least $300,000 in the first year. Upon Votorantimearning its 60% interest a joint venture will be formed whereupon futureexpenditures will be shared in proportion to each party's interest. Shouldeither party's interest dilute to 10%, this interest will convert to a 2% NetSmelter Return ("NSR"). The other party has the option to purchase 50% of theNSR for $1,000,000.
The Brabant Lake Zinc Project contains 16 kms of thefavourable horizon which hosts the Brabant Lake Zinc Deposit. In 2011, a 560line-km airborne VTEM PLUS survey was completed over the ground. The geophysicalinterpretation of the data identified numerous targets for follow-updrilling.
The NI 43-101 resource estimate for the Brabant Lake Zincdeposit, with an effective date of July 27, 2008, contains an indicated resourceof 1,475,000 tonnes grading 9.18% zinc and an inferred resource of 2,975,000tonnes grading 5.55% zinc plus copper, lead, silver and gold credits (see MAMPress Release dated March 7, 2011 for all the details).
Manicouagan'sInterim CEO, Brian Carter, stated: "Manicouagan is pleased to establish thisrelationship with Votorantim. This agreement will allow the Brabant Lake ZincProject to be advanced while Manicouagan continues to concentrate on thedevelopment of its Pickle Lake Gold Properties."
AboutVotorantim
Votorantim Metals Canada Inc. is a subsidiary of VotorantimMetais; a company that is part of the Votorantim Group that was founded inBrazil in 1918. The Votorantim Group operates in twenty countries and has over40,000 employees. Votorantim Metais is the largest electrolytic-nickel producerin Latin America and one of the world's leaders in the production of zinc,aluminum and nickel.
About Manicouagan
Manicouagan Minerals Inc.is a Canadian based exploration company focused on advancing its gold projectsin the Pickle Lake Gold Belt, Ontario. Manicouagan also has a pipeline ofcommodity projects including the Brabant Lake Zinc deposit in Saskatchewan, andthe Mouchalagane Nickel/Copper/PGE and HPM/Forgues Nickel/Copper/Cobalt projectsin Quebec.
Qualified Person
Exploration programs on Manicouagan'sBrabant Lake Property are carried out under the supervision of Mr. Bruce W.Mackie, P. Geo. Mr. Mackie, a professional geologist, has reviewed and verifiedthe technical content of the information contained in this release and qualifiesunder the definition of "Qualified Person" set out in National Instrument43-101.
Additional information about Manicouagan and its explorationprojects can be found at www.manicouaganminerals.com.
Une traduction francaisede ce communique de presse est disponible a www.manicouaganminerals.com.
Forward LookingStatements
All statements other than statements of historical fact,included in this release, including, without limitation, statements regardingpotential mineralization and reserves, exploration results, and future plans andobjectives of the Company, are forward-looking statements that involve variousrisks and uncertainties. There can be no assurance that such statements willprove to be accurate and actual results and future events could differmaterially from those anticipated in such statements. Important factors thatcould cause actual results to differ materially from the Company's expectationsare exploration risks detailed herein and from time to time in the filings madeby the Company with securities regulators.
Neither the TSX VentureExchange nor its Regulation Services Provider accepts responsibility for theadequacy or accuracy of this release.
CONTACT INFORMATION:
ManicouaganMinerals Inc.
W. Brian Carter
Interim Chief Executive Officer
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