Mr. Larry Reaugh reports

AMERICAN MANGANESE INC. ACQUIRES SILICA DEPOSIT FOR EMERGING LITHIUM ION BATTERY TECHNOLOGY

American Manganese Inc. has acquired by staking the Koot mineral claims, a high-grade silica (SiO2) prospect. A research team at the University of Southern California's Viterbi School of Engineering recently published its research results on silicon anodes in Nano Letters and as reported in the university's news release (March 31, 2014): "Researchers at the University of Southern California Viterbi School of Engineering have improved the performance and capacity of lithium batteries by developing better-performing, cheaper materials for use in anodes and cathodes (positive and negative electrodes, respectively). Traditionally, lithium-ion batteries contain a graphite anode, but silicon has recently emerged as a promising anode substitute because it is the second most abundant element on earth and has a theoretical capacity of 3,600 milliamp-hours per gram (mAh/g), almost 10 times the capacity of graphite." Anodes made from ball-milled and stain-etched metallurgical-grade silicon nano-powder are an emerging technology that could lead to cheaper and more efficient lithium batteries.

Koot project

Larry Reaugh, president and chief executive officer of American Manganese, stated, "The acquisition of this silica project follows the company's philosophy of finding superior value in non-mainstream mineral projects in politically stable and mining-friendly jurisdictions through the application of state-of-the-art mineral science."

The Koot project is located about four kilometres east-southeast of Canal Flats, British Columbia, Canada, in the Golden mining division, about 2.5 kilometres east of Highway 95 and 3.5 kilometres east of the Canadian Pacific rail line. The mineral claims are underlain by the Lower Cambrian Cranbrook formation. The quartzite occurrence strikes north-south for a length of approximately 400 metres (1,312 feet). The property was owned and explored by Cominco in the 1980s, where eight diamond drill holes returned high-grade SiO2 values over intervals ranging from 16.54 metres (54 feet) to 79.8 metres (262 feet) thick. Thirty-four 6.1-metre (20-foot) composites returned SiO2 values greater than 99 per cent in 14 samples; between 99 per cent and 98 per cent in 18 samples; and between 98 per cent and 97 per cent in two samples. The drill holes are sited on two knolls, and the overburden thickness ranges from 1.22 metres (four feet) to 4.44 metres (14.5 feet), averaging 2.87 metres (8.8 feet).

Processing to convert high-grade silica into a saleable product includes quarrying, staged crushing and thermal reduction of the silica with carbon to produce high-purity metallurgical-grade silicon (Si).

Mr. Reaugh stated: "The company remains committed to achieving production of high-purity chemical manganese dioxide (CMD) and/or electrolytic manganese dioxide (EMD) from its Artillery Peak manganese project situated in Arizona. The potential of being a secure supplier of materials for both the cathode (CMD or EMD) and the anode (Si) is very advantageous for the company.

"According to Tesla's published timeline, the decision on the location of its proposed lithium-ion battery gigafactory should be announced in the next few weeks. With the proposed Tesla gigafactory, and the recent General Motors announcement to invest $450-million (U.S.) in its Chevy Volt EV and battery manufacturing facilities, I am confident in the growing consumer demand for electric vehicles."

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

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