Microsoft Word - Symbion Power Supply Signing_May 2016 FINAL

FOR RELEASE 16 May 2016

KEY POWER INFRASTRUCTURE AGREEMENT SIGNED FOR NACHU GRAPHITE PROJECT

  • Grid power agreement signed with Symbion Power LLC

  • Delivers a third party build-own-operate power solution for Nachu

  • Project development team bolstered with new appointments in Tanzania

Magnis Resources Limited ("Magnis" or the "Company") (ASX:MNS) advises that it has entered into a power development agreement ("Agreement") for the Nachu Graphite Project in Tanzania with leading US-based power engineering and construction group Symbion Power LLC ("Symbion").

Under the terms of the Agreement, Symbion will provide a total power solution for Nachu by developing and operating a dedicated 30MW gas fired power station, associated substations and a 132KV transmission line to connect Nachu to the main power grid.

The Tanzania Electric Supply Company (TANESCO) has given its in principal approval for Symbion & Magnis to proceed with the development..

Magnis will now undertake further detailed work and complete an Environmental Impact Assessment for the power project. Upon demonstrating the technical, economic and environmental feasibility of the power project, thereafter Symbion will be responsible for funding, developing and building the electricity infrastructure and the Nachu Project will be the offtaker of the power.

Symbion has extensive experience operating power plants and constructing transmission lines in Tanzania and elsewhere in the world , including a 50MW diesel plant at Arusha, a 55MW diesel plant at Dodoma and a 120MW gas turbine plant in Dar es Salaam.

The Nachu Bankable Feasibility Study (BFS) estimates for capital and operating costs relating to power were constructed on the basis of such a third party build-own-operate grid power supply solution. Study work completed by an Australian Electrical Engineering Consultant provided an indicative power price of between US$0.08 to US$0.10 per kwh for on-grid power. This represents a significant saving compared to other power options such as diesel or heavy fuel oil power generation.

Magnis Chairman Frank Poullas stated: "Magnis has closely studied a variety of power supply options for Nachu and we believe this Agreement represents the most attractive and viable pathway to provide a stable power supply for Nachu.

"Symbion is a firm with vast experience around the world and especially in the Tanzanian power sector. I would like to thank Symbion CEO Paul Hinks and his team for their efforts so far and on behalf of Magnis we look forward to working closely with Symbion to deliver the power project."

Symbion Power CEO Paul Hinks commented: "The Nachu Project is unique in terms of its geological qualities and we are pleased to be working with Magnis on this world-class endeavour."

Figure 1: (Left to Right) Peter Gathercole - Symbion Power VP Business Development EA, Paul Hinks - Symbion Power Chief Executive Officer, Peter Tsegas - Magnis Resources Director, Rod Chittenden - Magnis Resources Chief Operations Officer, Han Van der Vlugt - Symbion Power Project Manager EA, Brent Laws - Magnis Resources Exploration Manager

Figure 2: Transmission Lines proposed by the Symbion Power Agreement

APPOINTMENT OF NEW STAFF IN TANZANIA

Magnis continues to bolster its Nachu Project Development Team in Tanzania and has made a number of key appointments in recent weeks.

Alley Mwakibolwa - Manager Corporate Affairs

Mr Mwakibolwa has 35 years career experience in the public and private sectors in metal works, energy/power projects and transport logistics and holds a Bachelor of Science from Dar es Salaam University and a Master of Science (Metallurgy) from University College Dublin. He is a Fellow of the Institution of Engineers, Tanzania and a Consulting Engineer to the Tanzania Engineers Registration Board. Mr Mwakibolwa has worked at senior levels in many large private and public sector organisations in the UK and Tanzania, including the Institute of Materials (MIM) UK (1994-1996) and as a consultant for metallurgical industries under the UNIDO/COMESA Program.

Bradley Mitchell - Procurement Logistic Manager

Mr Mitchell has more than 15 years experience in logistics procurement for Tanzanian mining operations, with the majority of this time spent with Dubai based GPSTM as the Tanzanian Country Manager responsible for procurement and logistical operations throughout East Africa.

Frank Poullas Chairman

Magnis Resources Limited

+61 (0)2 8397 9888

ABOUT SYMBION POWER LLC

Symbion Power is an American power sector developer and Independent Power Producer in the generation, transmission and distribution industry with an established presence in sub-Saharan Africa. Symbion's power plants supply electricity to some of the world's most critically underserved regions. Symbion has worked on large-scale generation, transmission, and distribution projects in the Middle East, Sub-Saharan Africa and Asia.

Magnis Resources Ltd. published this content on 16 May 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 May 2016 23:52:01 UTC.

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