GGG takes 100% of Kvanefjeld, Sorensen and Zone 3 deposits

[Sparty]

Greenland Minerals and Energy Ltd ("GMEL" or "the Company") is pleased to announce that it has finalised an agreement with Westrip Holdings ("Westrip") and Rimbal Pty Ltd ("Rimbal") to complete the acquisition for the outstanding 39% of the exploration license (EL 2010/02) that contains the Kvanefjeld, S?rensen and Zone 3 deposits, with an equity-based transaction.

In order to complete the acquisition GMEL was required under the original agreement (August 2011), to pay AUD $39M in cash to Westrip/ Rimbal, in addition to issuing 7,825,000 shares, and 5,000,000 options (ex $1.50).

Under the new equity-based terms, the cash component of the original agreement can be finalised through the payment of $5M AUD to Westrip/Rimbal, in addition to issuing sixty seven million ordinary shares in GMEL, priced at $0.45/share. The equity component of 7,825,000 shares from the original agreement remains, taking the total number of shares issued to complete the acquisition to 74,825,000. The agreement is subject to shareholder approval, with completion scheduled for 5 business days following approval.

Post-finalisation the shares issued in order to complete the acquisition of the outstanding 39% of the company's core asset, the Kvanefjeld multi-element project, will represent 15.4% of the Company's issued capital (not inclusive of the required $5M cash payment).

The board firmly believes that the terms outlined above represent a highly favorable outcome, and one that offers the least-dilutive path to finalizing the acquisition of the outstanding 39% of the Kvanefjeld project. The equity terms agreed upon by all parties reflect continued advances in the Kvanefjeld project including the introduction of a uranium-licensing framework for Kvanefjeld in late-2011, major resource expansions, and strong outcomes of the Kvanefjeld pre-feasibility study, released in May 2012.

The Company is looking to make a decision on the preferred funding option to meet cash requirements in the coming weeks. GMEL is well-advanced in pursuing a number of options. The agreement outlined herein sees the cash required to complete the acquisition reduced from $39M to $5M; a position that places GMEL in a considerably stronger position.

Importantly, the move to 100% of the Kvanfjeld project allows the Company to focus on structuring investment opportunities for potential strategic partners to participate in the development of the Kvanefjeld project.

[Sparty]

Greenland Minerals and Energy Ltd ("GMEL" or "the Company") is pleased to provide an update on the latest metallurgical developments regarding beneficiation, and the positive implications for the Kvanefjeld multi-element project (rare earth elements, uranium, zinc).

Process Development

Following an extensive laboratory development program GMEL is nearing the end of metallurgical development of a beneficiation process to produce a high-grade mineral concentrate. Beneficiation development was aggressively initiated in September 2010 and has resulted in a well-tested process utilizing commercially established froth flotation.

The flotation process is able to concentrate 82% of the rare earth elements in 8.5% (mass pull) of the original ore mass. This effectively increases the in-ground ore grade from notionally 1.2% REO to 12% REO in concentrate. In addition to concentrating the rare earth elements, uranium is concentrated to a grade of approximately 0.2% U3O8. Financial analysis indicates there is an economic optimum for the project within a mass pull range of 8-10%.

The high upgrade for the ore is made possible by the favorable mineralogy. The ore minerals are unusual, but increasingly recognized as highly advantageous in that they can be beneficiated effectively, and are amenable to leaching under atmospheric conditions without costly high-temperature mineral cracking. The ores allow for a grind size of 75-100 microns (80% passing size) to be utilized with no de-sliming required.

The design for the Kvanefjeld flotation circuit is simple relative to base metal flotation and flotation circuits of other rare earth projects, with a small number of stages required. Most of the zinc can be removed from the rare earth-uranium mineral concentrate with a pre-float stage to produce a high-grade zinc concentrate. The ore is conditioned with the use of two reagents; a collector and a dispersant. Fast flotation kinetics allow for the use of flotation equipment which produce final concentrate from the first flotation stage. A scavenger flotation stage is used to collect the remaining concentrate which is cleaned to produce additional final concentrate.

Advantages for Greenland Minerals and Energy

The ability to produce a high-grade concentrate brings both cost advantages and optionality to the Kvanefjeld project. The ability to reduce the mass of material treated by a high-cost rare earth hydrometallurgical refinery has significant cost advantages. Both the capital and operating cost are greatly reduced by treating a high-grade mineral concentrate rather than whole of ore.

Processing of the Kvanefjeld ores requires two main steps; beneficiation, followed by hydrometallurgical leaching. In studies to date, GMEL has evaluated conducting both steps in Greenland. Whilst the beneficiation step must take place in close proximity to the ore deposits, the significant grade increase and mass reduction achieved through beneficiation open the option to ship the concentrates to conduct the leaching step outside of Greenland.

Initial studies to evaluate the transport costs of the Kvanefjeld mineral concentrates indicate that it represents approximately 5% of the contained value. This is in-line with the transport costs of base metal flotation concentrates, which are commonly shipped elsewhere for refining. Notionally, this provides strong confidence in the viability of shipping flotation concentrates from Kvanefjeld. The company is currently conducting studies to investigate the benefits of establishing a hydrometallurgical refinery closer to markets in a lower cost environment. The outcomes can be compared against the costs and logistics established for a base-case hydrometallurgical plant in Greenland.

GMEL sees a number of potential benefits to establishing only the concentrator (beneficiation stage) in Greenland. Firstly, infrastructure requirements in Greenland and associated costs will be reduced substantially. Secondly, it provides greater flexibility in structuring development and investment scenarios with strategic partners.
The Kvanefjeld concentrates are strategic in that they are rich in the high-value heavy rare earth elements. Importantly, the concentrates can be leached under atmospheric conditions without costly, high temperature mineral cracking stages.

To read the full ASX announcement go to http://www.ggg.gl/docs/ASX-announcements/Technical-Update-Beneficiation-brings-optionality-to-Kvanefjeld.pdf


ABOUT GREENLAND MINERALS AND ENERGY LTD.
Greenland Minerals and Energy Ltd (ASX - GGG) is an exploration and development company focused on developing high-quality mineral projects in Greenland. The Company's flagship project is the Kvanefjeld multi-element deposit (Rare Earth Elements, Uranium, Zinc), that is rapidly emerging as a premier specialty metals project. An interim report on pre-feasibility studies has demonstrated the potential for a large-scale multi-element mining operation. For further information on Greenland Minerals and Energy visit http://www.ggg.gl or contact:

Roderick McIllree
Managing Director
+61 8 9382 2322