Mindoro Announces Completion of First DSO Shipment at Agata

EDMONTON, ALBERTA--(Marketwired - Oct. 23, 2014) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(FRANKFURT:WKN 906167) is pleased to report that the first shipment of high-iron/low nickel direct shipping ore ("DSO") has been completed from the Agata project located in northern Mindanao, the Philippines. Upon final exercise of a 25% option in the Agata project, Mindoro will hold a 40% direct interest in Agata Mining Ventures Inc. ("AMVI"), a joint venture company in which TVI Resource Development (Phils.), Inc. ("TVIRD") also holds a 60% interest in the project.

A total of 54,181 wet metric tonnes (wmt) of limonite high-iron/low nickel ore containing 0.70% nickel and 49% iron left the port of Payong-Payong in Agusan del Norte, Mindanao, on October 19, 2014. In accordance with an off-take arrangement between AMVI and Tewoo Hoperay (Singapore) Pte. Ltd., AMVI expects to receive gross revenue of US$0.89 million for this shipment.

"We congratulate operator TVIRD on their efficiency in loading our first high-iron/low nickel DSO shipment in just seven days," stated Penny Gould, CEO of Mindoro. "Mindoro's transition towards becoming a cash flow generating company, through its interest in AMVI, hails a major milestone in Mindoro's strategy to rebuild value for its shareholders."

Production remains steady at the Agata project and remaining inventory to date is approximately 26,669 wmt of limonite high-iron/low nickel ore with nickel and iron content levels between 0.7% and 0.9% and 48% and 49%, respectively. It is anticipated that future shipments of approximately 55,000 wmt high-iron/low nickel DSO will continue approximately every three to four weeks with shipping rates expected to accelerate rapidly to 2.5 million wmt per year in 2015.

About the Agata Project

The Agata Project is located in Agusan del Norte province, within the Surigao mining region on the island of Mindanao, Philippines. The Surigao region is a major nickel producing region providing ore to processing plants in Australia, China, Korea and Japan. The region has hosted between thirteen and fifteen DSO operations since 2011 and exported 27 million wet metric tonnes in 2013.

An initial offtake agreement was signed in June 2014 between AMVI and Tewoo Hoperay, a subsidiary of Tianjin Hoperay Mineral Limited Company, a major Chinese State Owned Enterprise, to sell one million wet metric tonnes of high-iron/low nickel DSO. A second agreement was signed in August 2014 to sell five hundred thousand wet metric tonnes. Advance payments of US$2 million have been received by the joint venture against the initial agreement to fund initial operating costs and a further US$1 million advance is expected in connection with the second agreement.