North American Tungsten Corporation Ltd NATUF

NTC signs with the largest tungsten users

[RGS1]

NORTH AMERICAN Suite 11 - 1155 Melville Street, TUNGSTEN Vancouver, B.C. V6E 4C4 CORPORATION Phone: [phone] Fax: [phone] LTD. Toll Free: 1-800-478-5550 Email: [e-mail] March 19, 2001 SYMBOL: NTC (CDNX) FOR IMMEDIATE RELEASE COMPANY ENTERS INTO A LETTER OF INTENT FOR A STRATEGIC ALLIANCE WITH GUARANTEED SALES, PRICING AND TUNGSTEN PROPERTIES DEVELOPMENT ARRANGEMENT North American Tungsten Corporation Ltd. (“the Company”) is pleased to announce that it has entered into a Letter of Intent “(LOI”) with Sandvik AB (“Sandvik”) and OSRAM SYLVANIA Products Inc. (“OSRAM SYLVANIA”), pursuant to which Sandvik and OSRAM SYLVANIA have agreed to purchase all of the Company’s tungsten concentrate production from its CanTung mine, estimated to be some 900,000 MTU’s (metric tonne units) over a three year period. Sandvik and OSRAM SYLVANIA are leading producers of tungsten products, cemented carbides and leading consumers of tungsten ore. The LOI creating this strategic alliance involves a cash advance, the guaranteed purchase of the mine’s tungsten concentrate, a minimum floor price, a scaled discount from quoted tungsten commodity prices and an exclusive option for future participation by Sandvik and OSRAM SYLVANIA in the Company’s other tungsten projects. Specifically, the LOI calls for both Sandvik and OSRAM SYLVANIA to jointly advance US$3 million (Cdn $4,500,000) towards start-up costs for the CanTung mine, to be repaid over a 36 months period. The arrangement further allows for both Sandvik and OSRAM SYLVANIA to negotiate with the Company for an exclusive option to earn participation rights for the future development of the Company’s additional assets, specifically the Mactung deposit located some 100 miles north of the CanTung mine and the recently announced acquisition of an option for the Bolivian Himalaya project. The Company anticipates the LOI to be formulated into a agreement by March 31, 2001. This arrangement is of major significance for the mutual benefit of all parties and solidifies a long-term relationship with two of the world’s leading producers of tungsten products. Further it demonstrates confidence shown in the Company’s world-class tungsten reserves, and provides to our allies an alternate Western World source of supply. The CanTung mine upon commencement of production will again be the largest producer of tungsten in the Western World. The Company continues to advance its start-up plans, which have been presented to Government and the appropriate Regulatory Authorities. As the Company is in possession of valid authorizations to commence operations it anticipates bringing the CanTung mine into production in the fourth quarter of 2001. Also, the Company has engaged local communities, entered into discussion with Aboriginal Leadership and is holding information sessions in the communities located near the mine.