19 February 2009
KEFI Minerals plc
("KEFI" or the "Company")
Potential Strategic Partnerships
In 2008, the Company expanded on its strategy of forming strategic alliances in
the key regions in which it operates. This began with its strategic alliance
with EMED Mining Public Limited ("EMED") which has provided management,
technical and financial support to the Company and also led to the formation in
Turkey of the Artvin Joint Venture at the Artvin project with partner Centerra
Gold Inc. of Canada. As announced on 28 October 2008, under the terms of the
joint venture, which is managed by the Company, Centerra has the opportunity to
earn an interest in the Artvin project in return for funding exploration costs
up to a specified amount. This arrangement not only accelerated the work at
Artvin but, at the same time, conserved the Company's resources.
In 2009, this approach is set to continue. The potential for gold and other
mineral exploration in Saudi Arabia is of interest to the Company and a
strategic alliance or joint venture with an appropriate local partner could be
significant in any future success of the Company in this region. The Company is
already in advanced discussions with possible additional strategic partners in
Turkey and in the Kingdom of Saudi Arabia.
Furthermore, as shareholders are aware, in November 2006, KEFI executed a
non-compete agreement with EMED pursuant to which KEFI agreed not to explore
for natural resources in certain countries in which EMED is interested (the
"Agreement"). The Kingdom of Saudi Arabia is one country governed by the
Agreement. However, KEFI and EMED have today entered into an agreement pursuant
to which EMED has agreed to waive its rights under the Agreement in respect of
the Kingdom of Saudi Arabia only, in return for KEFI granting to EMED a right
of first refusal on any projects that may develop in Saudi Arabia in which the
Company may not wish to participate.
For further information contact:
Jeffrey Rayner,
KEFI Minerals plc Tel: +90 533 928 1913
David Youngman/Katy Mitchell
W.H. Ireland Ltd. Tel: +44 (0) 161 832 6644
Nick Rome
Bishopsgate Communications Tel: +44 (0) 20 7562 3350