Mr. Mike Mason reports

GEOVIC COMPLETES FEASIBILITY STUDY ON NKAMOUNA COBALT PROJECT, COMMENCES FINANCING PHASE

Geovic Mining Corp. has received the final feasibility study for its Nkamouna cobalt-nickel-manganese project in Cameroon, Africa. The feasibility study was prepared by Lycopodium Minerals Pty. Ltd. of Perth, Australia. The feasibility study incorporates comprehensive input from SRK Consulting and Knight Piesold and Co., both of Denver, Colo.

The feasibility study was prepared to an estimated accuracy of plus or minus 15 per cent and includes the following highlights:

• Proven and probable reserves of 68,132,000 tonnes at average grades of 0.26 per cent cobalt, 0.66 per cent nickel and 1.48 per cent manganese;
• A 23-year project life;
• Average annual production for the first 11 years of full production:
  • Cobalt: 13.5 million pounds (6,115 tonnes);
  • Nickel: 7.25 million pounds (3,297 tonnes);
  • Manganese carbonate: 138 million pounds (62,800 tonnes);
• Initial capital expenditure of $617.2-million (including average 10-per-cent contingency);
• After-tax project net present value (NPV) of $669.6-million at an 8-per-cent discount rate (Geovic Mining's 60.5-per-cent share, $405.1-million), assuming average three-year trailing prices (in accordance with SEC guidelines) of $26.20 per pound for cobalt, $8.71 per pound for nickel and 54 cents for manganese, based on current prices for manganese carbonate;
• After-tax internal rate of return (IRR) of 22 per cent, based on 100-per-cent equity;
• Payback period of 41 months;
• Total free cash flow (before debt service) of $2.14-billion over the project life.

"We are pleased with the results of the Nkamouna feasibility study, and will aggressively move forward with financing and off-take arrangements as quickly as possible," stated Mike Mason, Geovic's chief executive officer. "We are confident the capital and operating costs have been well vetted, and that the overall economics are solid and defensible. Our ability to finance Nkamouna has been significantly enhanced, and we are now in a position to advance ongoing discussions with various parties."

The end products to be produced include a high-quality cobalt-nickel-mixed sulphide precipitate (MSP) product and a manganese carbonate product. Due to the strong off-take demand observed for MSP, it was determined that building a refinery to manufacture high-purity finished products was neither necessary nor cost-efficient at this time. "Producing a high-quality intermediate MSP represents a much lower process risk in terms of our ability to get the metallurgical plant up and running, as well as to produce a more marketable and consistently high-quality product sooner," Mr. Mason commented.

Financial sensitivity to product prices

The feasibility study includes the financial sensitivity of the project to changes in underlying commodity prices, calculating estimated operating results from 15-per-cent increases and decreases in cobalt, nickel, and manganese prices from the base case assumptions.

                                  PRICE SENSITIVITY

Price assumptions                              Base  -15%  Base  +15%   Base case

Cobalt, $(U.S.)/lb                                $22.27      $30.13       $26.20
Nickel, $(U.S.)/lb                                 $7.41      $10.02        $8.71
Manganese, $(U.S.)/lb                              $0.46       $0.63        $0.54
100% equity -- after tax
IRR, %                                                16%         27%          22%
NPV 8%, M$(U.S.)                                     316       1,021          670
NPV 8%, M$(U.S.) (Geovic Mining 60.5% share)         191         618          405
Payback, production years                            4.7         2.8          3.4

Feasibility study changes compared with previous studies

• A 24.5-per-cent increase in reserves based on the 54,900-metre drilling program completed in 2009, yielding an updated mine plan that delivers higher-grade ore in the critical early years of production;
• A simpler and highly flexible mining method better suited for all-weather operation that enables concurrent mining and reclamation of multiple ore zones;
• An improved physical upgrading circuit that significantly improves the economics by efficiently delivering higher grades to the process plant, while removing the non-economic material, deemed as waste;
• A simplified and more robust metallurgical process, utilizing powdered pyrite and sulphuric acid to leach the ore concentrate at atmospheric pressure, which has been validated by significant additional metallurgical test work, including a continuous pilot testing program in 2010;
• A more environmentally protective water management and tailings disposal system, including water treatment;
• A detailed projectwide energy balance enabling the economic use of imported fuels replacing a dedicated biomass power plant that was dependent on other local industries to supply fuel material;
• A modular design that allows the project to produce cobalt-nickel MSP and manganese carbonate as the marketable products, while retaining the ability to add a refining facility at a future date.

Independent advisers

The Geovic Cameroon board of directors is advised by its independent financial adviser, Standard Chartered Bank of London, while the Geovic board is advised by Canaccord Genuity of Vancouver.

John Marsden of Phoenix, Ariz., advised Geovic Cameroon and Geovic as a technical adviser and a member of the technical advisory panel, an independent panel of industry experts, for metallurgical aspects of the project. Based on the review and opinions of the technical advisers, the results of the feasibility study have been based on sound feasibility-level design engineering and costing principles. The hydrometallurgy has been demonstrated through continuous pilot plant testing, and the technical advisory panel members are generally satisfied that the plant will be able to produce MSP and manganese carbonate if designed, constructed and operated according to the proposed plan.

2011 plans

Geovic Cameroon and the company, with the assistance of their financial advisers, now plan to secure the required project financing later in 2011. Preliminary discussions have been held with prospective lenders, and completion of the feasibility study allows this process to be accelerated.

Discussions with numerous potential off-take partners have been continuing for the past 18 months, and will accelerate in light of the completion of the feasibility study, and near-term financing and construction targets. The company is very encouraged by the level of off-take interest thus far, principally from China, Korea and Japan, but also from other regions, including both trading companies and product end-users. Moreover, discussions with such firms have also included the potential for strategic equity partnerships in Geovic Cameroon, as well as related project financing arrangements.

Assuming project financial arrangements are completed later in 2011, major site construction is scheduled to commence in early 2012. Under the base case scenario, it is anticipated that mining operations would commence in 2013, with commercial production before the end of 2014.

Geovic Cameroon chairman and Geovic Mining chief financial officer Greg Hill commented: "We are excited with the results of the Nkamouna feasibility study, which bear out the confidence we have always had in this unique project, despite recent financial market turbulence. Nkamouna comprises only about 20 per cent of the mineralized area within Geovic Cameroon's mine permit area boundary, and as such, this project has the potential to produce cobalt, nickel, and manganese for many decades to come. We are now ready to move forward with project financing and ally with parties looking to secure long-term strategic supplies of cobalt, nickel and manganese."

William Buckovic, company founder, who conducted the early exploration of the deposits, and formed Geovic Cameroon in 1995 to exploit the deposits, stated, "This feasibility study validates the last 15 years of efforts and the investment of over $100-million by the shareholders of Geovic Cameroon in defining this project, and developing and proving the specialized production scheme that is required to operate this unique world-class resource."

Phillip Mason, general manager of Geovic Cameroon, added, "This feasibility study will no doubt enable significant long-term value creation for our stakeholders, and especially for the people of Cameroon."

Qualified persons

The following individuals are qualified persons under National Instrument 43-101 and all are independent of Geovic and Geovic Cameroon. Each has reviewed and approved his respective sections of this news release:

• Bret Swanson of SRK Consulting (member AusIMM) for matters relating to mining and the financial model;
• Jeff Volk of SRK Consulting (PGeo) for matters relating to geology and exploration;
• Brett Crossley of Lycopodium (member AusIMM) for matters relating to metallurgical processing and costs;
• Norbert Peyfuss of Knight Piesold (PE) for matters relating to the tailings storage facilities;
• Jaye Pickarts of Knight Piesold (PE) for environmental matters.

We seek Safe Harbor.