Mr. Larry Reaugh reports

SUCCESSFUL PHASE 1 RECYCLING RESULTS IN LEACHING 100% LITHIUM AND COBALT USING AMERICAN MANGANESE INC.'S PATENTED PROCESS

American Manganese Inc. has received the first progress report from Kemetco Research Inc. on recycling lithium-cobalt cathode materials essential to the production of lithium-ion batteries.

Ten reductive leach tests were conducted with a range of conditions using American Manganese's proprietary process. Extractions of 100 per cent for both lithium and cobalt were achieved from cathode powders used for lithium-ion batteries.

"With the completion of this phase 1 work, the company is now in a position to have Kemetco conduct additional more-fine-grained leaching tests leading to metal precipitation tests and the production of rechargeable coin-cell batteries in phase 3 from 100-per-cent-recycled materials," said Larry W. Reaugh, president and chief executive officer of American Manganese. "What is becoming clear is that the company's patented hydrometallurgical extraction process is well suited to recycle and produce any or all of the high-value-added cathode materials -- including lithium, cobalt, nickel and manganese."

We seek Safe Harbor.