Mr. Larry Reaugh reports

PHASE 2 RESULTS ON INITIAL PRECIPITATION TESTS -- UP TO 91% COBALT AND 60% LITHIUM RECOVERIES

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

In phase 1 of the work program, Kemetco used the company's proprietary process to conduct several leach tests on lithium-cobalt cathode materials with a range of conditions. Kemetco was able to extract 100 per cent of the lithium and cobalt from the cathode powders, which thus provided the necessary amount of filtrate for the next step of the process, metal precipitation tests.

In phase 2 of the work program, initial single-pass sequential cobalt/lithium precipitation tests were performed, yielding cobalt recoveries of up to 91 per cent and lithium recoveries of up to 55 per cent, respectively. However, Norman Chow, president of Kemetco, said that, "With additional future lock cycle testwork, lithium recovery should approach at least 90 per cent."

The purity of the cobalt and lithium precipitates exceeded 99 per cent for each.

Mr. Reaugh said: "The results achieved to date is about what we expected. The focus of the final phase 3 of the work program that is now under way is to recombine the cobalt and lithium precipitates to regenerate a lithium-cobalt cathode material suitable for confirmation testing in a coin-sized rechargeable battery."

We seek Safe Harbor.