ERAMET and Mineral Deposits Limited (TSX:MDM)(ASX:MDL) ("MDL") announced today
that they have signed the definitive agreements for the creation of a joint
venture to combine ERAMET Titanium & Iron ("ETI") and MDL's Grande Cote Mineral
Sands Project ("Grande Cote").


As proposed in the terms of the Memorandum of Understanding announced on 20 June
2011, ERAMET and MDL will both hold 50% of the shares of the newly created
entity. ERAMET will contribute to the joint venture its 100% shareholding in ETI
and cash of US$30m, and MDL will contribute its 90% participation in the Grande
Cote Mineral Sands project, the other 10% of the project being held by the
Republic of Senegal.


The transaction creates a new major player in the mineral sands industry which
presents attractive growth prospects given the supply deficits forecast in the
titanium dioxide and zircon markets in the short and medium term, and the low
substitution risk of these two products. Titanium dioxide is mainly used for the
production of pigments (91% of consumption) and of titanium metal - notably for
the aeronautics industry - (5%). Zircon is used in the production of ceramics
(55% of consumption), zirconia and chemicals (18%), refractory materials (11%)
and foundry parts (11%).


ETI owns the Tyssedal plant in Norway, which is the only facility in Europe
producing titanium dioxide (TiO2) slag for use in the pigment sector. Current
capacity is approximately 210 ktpa of TiO2 slag, and approximately 115 ktpa of
high-purity pig iron as a very important co-product, which is sold to ductile
iron foundries, notably for the production of parts for wind turbines. Ilmenite
is the major feedstock of the plant.


Located on the coast of Senegal in West Africa, the Grande Cote Mineral Sands
Project, with an expected mine life of at least 20 years (based on identified
reserves and resources), is anticipated to produce approximately 85 ktpa of
zircon and 575 ktpa of ilmenite (and small amounts of rutile and leucoxene) when
in full production. Construction of the Project will commence during the current
quarter, and after a two year build, production is expected to commence late in
2013. The capital cost of the Project, estimated at US$516 million, will be
financed using ERAMET's cash contribution of US$30 million to the joint venture,
a US$45 million shareholder loan provided by ERAMET to the joint venture, third
party debt financing and equity contributions or shareholders loans set up at
parity between the joint venture and the two parties. Grande Cote is one of only
a few major new projects globally that is expected to be developed in the medium
term.


The combination of ETI and Grande Cote will provide ETI with the opportunity to
benefit from a new source of high quality ilmenite, which provides for expansion
and product diversification opportunities, while Grande Cote will be able to
secure off-take for the majority of its ilmenite production. Grande Cote's
zircon production will allow the jointventure to have a strong position in
another attractive market. Finally, the joint venture will benefit from ERAMET's
broad expertise in mining, metallurgy, logistics, R&D and marketing, and from
MDL's development expertise (having successfully commissioned the Sabodala gold
project in Senegal in 2009) and mineral sands mining experience.


The closing of the transaction is subject to certain conditions precedents and
is expected to take place by the end of September 2011.


Patrick BUFFET, Chairman and CEO of ERAMET, stated that "This partnership with
Mineral Deposits Limited will allow ERAMET to leverage on ERAMET Titanium &
Iron's strengths and create a significant vertically integrated titanium
feedstock producer, which will expand and diversify the group's product range
with the production of zircon, two very attractive markets with a supply deficit
expected in the coming years."


Nic LIMB, Executive Chairman of MDL, stated: "We are delighted to have formed
this partnership with ERAMET. The combination of a word class mineral sands ore
body and a Tier-1 production facility is compelling industrial rationale, and
positions the joint venture exceptionally strongly in a growth sector."


ERAMET is a leading global producer of:



--  alloying metals, particularly manganese and nickel, used to improve the
    properties of steel, 
--  high-performance special steels and alloys used in industries such as
    aerospace, power generation and tooling. 



ERAMET is also studying or developing major projects in new metals with high
growth potential such as lithium, niobium and rare earths, as well as in
recycling.


The Group employs approximately 14,000 people in 20 countries. ERAMET is part of
Euronext Paris Compartment A and is listed on the MSCI index.


Mineral Deposits Limited is an Australian-based, ASX and TSX listed mining
company developing the world class Grande Cote Mineral Sands Project in Senegal,
West Africa. Grande Cote, which is expected to commence production late in 2013,
is one of only a few major new projects globally that can take advantage of the
supply-constrained mineral sands sector.
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