Mr. Larry Reaugh reports

AMERICAN MANGANESE INC.: TESLA'S GIGAFACTORY SPARKS NEW INTEREST FOR SECURE LITHIUM ION BATTERY RAW MATERIAL SOURCES

Larry Reaugh, president and chief executive officer of American Manganese Inc., said, "The recent (Feb. 26, 2014) announcement by Tesla Motors of the imminent construction of a lithium-ion-battery gigafactory has raised the bar for electric vehicle production." Initial production from the gigafactory is scheduled for 2017 and full production scheduled for 2020. At full capacity, the facility would manufacture as many lithium-ion batteries as the 2013 total world production.

Arizona, Nevada, New Mexico and Texas are vying to host the manufacturing facility. Arizona has been most aggressive thus far, as proposed Bill 2123 in the state legislature would legalize direct sales of Tesla electric cars within the state. Tucson, Ariz. (Pima county), has submitted a formal proposal to Tesla to become the host site. Another communication from Mohave County Economic Development to Tesla referred to the company's Artillery Peak manganese project as an additional incentive to locate in Mohave county.

American Manganese has a patented hydrometallurgical process for the commercial production of electrolytic manganese metal (EMM), electrolytic manganese dioxide (EMD) and chemical manganese dioxide (CMD) from manganese resources. EMD and CMD are used in dry-cell and rechargeable batteries.

Lithium manganese dioxide (LMD), or spinel, rechargeable batteries are currently being used in the Chevy Volt and Nissan Leaf electric vehicles. The company successfully produced rechargeable lithium-ion battery prototypes utilizing high-purity CMD from its Artillery Peak manganese resource in late 2012. CMD eliminates the use of expensive electroplating cells and high electricity costs. Mr. Reaugh concluded by saying that: "It is my belief that Tesla's project is concrete evidence of the growth and viability of the electric car market, resulting in greater demand for lithium-ion batteries. The need for secure metal feed stocks used to make these batteries, such as manganese, cobalt, lithium, carbon and others, will correspondingly increase to meet the soaring electric vehicle demand."

This release has been reviewed by Michael MacLeod, PEng, a qualified person pursuant to National Instrument 43-101.

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