MONTREAL, QUEBEC--(Marketwired - Aug. 15, 2016) - Oceanic Iron Ore Corp. (TSX
VENTURE:FEO) ("Oceanic", or the "Company") announces that it has executed a Pre EPC
Framework Agreement (the "Agreement") with PowerChina International Group Limited ("PowerChina
Int'l"), the international business subsidiary of Power Construction Corporation of China
("PowerChina") in respect of the EPC infrastructure requirements for the Company's Hopes Advance project (the
"Project").
Under the terms of the Agreement, PowerChina Int'l, having completed a detailed preliminary evaluation of the
Project, has been provided a period of exclusivity, ending November 30, 2016, to complete further technical and financial
analysis of the Project.
Moreover, PowerChina Int'l will submit an EPC Proposal to Oceanic at, or before the completion of the exclusive
period which is intended to form the basis for a future EPC Contract.
PowerChina Int'l will facilitate the arrangement of project financing necessary for construction of the Project
upon the award of a future EPC contract. The Company will work cooperatively with Power China to satisfy future project financing
requirements, including arranging off-take agreements that will satisfy lenders as to the sales revenues that will demonstrate
the project's ability to service its future debt requirements and provide a favourable return to the Company's shareholders.
The Company signed an earlier Memorandum of Understanding with Sinohydro, a subsidiary of Power China, on August
20, 2015. That press release is available on the Company's website www.oceanicironore.com and SEDAR.
Su Qian, Regional Manager Power China Americas indicated: "Power China's work in respect of
Oceanic's Hopes Advance project has satisfied our organization that we should move forward with a detailed costing of the
project's capital infrastructure with the objective of formalizing an EPC contract with Oceanic that will form the basis for
project financing and construction. The development of Oceanic's Hopes Advance project fits very well with Power China's Canadian
business development objectives."
Alan Gorman, President/ CEO added: "We have been engaged with Power
China discussing a model whereby Power China is awarded the EPC contract for the Hopes Advance project development and have been
impressed with the manner that they have engaged with management, as well as the depth, experience, and capability within their
organization. We intend to arrive at an agreement on Power China's EPC proposal at, or before, the conclusion of the exclusive
period which will then allow for formalizing an EPC contract and the arrangement of project financing and the construction of our
low cost, high quality, Hopes Advance iron ore project. Power China and Oceanic intend that the Hopes Advance project development
will be an example of productive Sino Canadian trade and business relations undertaken within the province of Quebec where the
government is supportive of natural resource development within the context of its comprehensive Plan Nord economic development
strategy."
About Power China:
The Power Construction Corporation of China was founded in September 2011. It provides a comprehensive and
full-range of services from planning, investigation, designing, consulting, civil works construction to M&E installation and
manufacturing services in the fields of hydropower, thermal power, new energy and infrastructure. Its business also extends into
real estate, investment, finance, and O&M services.
The vision of Power China is to become a top global enterprise in renewable energy and the development of
hydropower resources, a key player in the infrastructure sector, and a driving force in China's power and water conservancy
industries, as well as an important participant in real estate development and operations.
Power China boasts world-leading EPC services in the development of hydropower, water works, thermal power, new
energy, and transmission and distribution projects, in addition to the achievements in the fields of infrastructure, equipment
manufacturing, real estate and investment.
Power China has world-class construction capacity, including the annual capacity of 300 million m3 of earth and
rock cutting, 30 million m3 of concrete placement, 15,000 MW of installation of turbine-generator units, 1-million-ton of metal
fabrication works, 5-million m3 of foundation grouting as well as 540,000 m3 of construction of impervious walls.
Power China possesses state-of-the-art technology in dam engineering and construction, installation of
turbine-generator units, foundation design, investigation and construction of extra large underground caverns, investigation,
engineering and treatment of high earth/rock slopes, dredging and hydraulic fill works, construction of runways in airports,
design and construction of thermal and hydropower plants, design and installation of power grids, and related equipment and
hydraulic machinery.
Power China also has first-class capacity of scientific and technological innovation in hydropower, thermal power,
and power transmission and transformation.
By the end of 2015, Power China had total assets of USD 77.1 billion and 200,000 employees. The annual revenue in
2015 was USD 43.6 billion. By the end of 2015, Power China performed 1,863 overseas projects in 116 countries in the fields of
engineering construction, design consultation and equipment manufacturing. Power China ranked 253rd in the Fortune 500 in
2015.
About Oceanic:
Oceanic is a feasibility stage company focused on the development of its 100% owned Hopes Advance, Morgan Lake and
Roberts Lake iron ore development projects located on the coast in the Labrador Trough in Québec, Canada. The Company is led
by a highly experienced management team that has managed, operated developed and/or sold over $20 bn in assets. In November
2012, the Company published the results of the pre-feasibility study completed in respect of the flagship Hopes Advance project
outlining a base case pre-tax NPV of $5.6 bn over a 30 year mine life, supported by a NI 43-101 proven and probable reserve of
approximately 1.36 bn tonnes and a life of mine operating cost of approximately $30/tonne, making it one of the lowest cost
development projects globally. The pre-feasibility study is available for review on the Company's website (www.oceanicironore.com) and SEDAR (www.sedar.com). Further information in respect of the Morgan Lake and Roberts Lake projects,
both of which have been explored historically and which have defined historical resources, is also available on the Company's
website.
OCEANIC IRON ORE CORP. (www.oceanicironore.com)
On behalf of the Board of Directors
Steven Dean, Executive Chairman
This news release includes certain "Forward-Looking Statements" as that term is used in applicable securities
law. All statements included herein, other than statements of historical fact, including, without limitation, statements
regarding potential mineralization and resources, exploration results, and future plans and objectives of Oceanic Iron Ore Corp.
("Oceanic", or the "Company"), are forward-looking statements that involve various risks and uncertainties. In certain
cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect",
"scheduled", "believes", or variations of such words and phrases or statements that certain actions, events or results
"potentially", "may", "could", "would", "might" or "will" be taken, occur or be achieved. There can be no assurance that such
statements will prove to be accurate, and actual results could differ materially from those expressed or implied by such
statements. Forward-looking statements are based on certain assumptions that management believes are reasonable at the time
they are made. In making the forward-looking statements in this presentation, the Company has applied several material
assumptions, including, but not limited to, the assumption that: (1) there being no significant disruptions affecting operations,
whether due to labour/supply disruptions, damage to equipment or otherwise;
(2) permitting, development, expansion and power supply proceeding on a basis consistent with the Company's current expectations;
(3) certain price assumptions for iron ore; (4) prices for availability of natural gas, fuel oil, electricity, parts and
equipment and other key supplies remaining consistent with current levels; (5) the accuracy of current mineral resource estimates
on the Company's property; and (6) labour and material costs increasing on a basis consistent with the Company's current
expectations. Important factors that could cause actual results to differ materially from the Company's expectations are
disclosed under the heading "Risks and Uncertainties " in the Company's MD&A filed July 27, 2016 (a copy of which is publicly
available on SEDAR at www.sedar.com under the Company's profile) and elsewhere
in documents filed from time to time, including MD&A, with the TSX Venture Exchange and other regulatory authorities. Such
factors include, among others, risks related to the ability of the Company to obtain necessary financing and adequate
insurance; the economy generally; fluctuations in the currency markets; fluctuations in the spot and forward price of iron ore or
certain other commodities (e.g., diesel fuel and electricity); changes in interest rates; disruption to the credit markets and
delays in obtaining financing; the possibility of cost overruns or unanticipated expenses; employee relations. Accordingly,
readers are advised not to place undue reliance on Forward-Looking Statements. Except as required under applicable
securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Statements, whether as
a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.