Investment in advanced molybdenum project

2 June 2011

Origo Partners invests in advanced stage molybdenum exploration project in Mongolia and secures offtake

Origo Partners Plc ("Origo") today announced the acquisition of a 20 per cent equity stake for US$10 million in Moly World Ltd ("the Company"), owner of an advanced stage molybdenum exploration project in Mongolia ("the Project"). In connection with the investment, Origo's wholly owned commodities trading company, Origo Resources International Ltd., has been granted an offtake covering up to 20 per cent of all possible production for the life of mine.

On the basis of two independent assessments, Origo believes that the Project has the potential to host a world class molybdenum resource, benefiting from high grade and near surface mineralization.

Molybdenum is used primarily in the production of high-strength steel alloys essential for the construction of buildings, bridges, power plants and cars. China currently uses approximately 50 per cent of the world's steel output but only around 30-35 per cent of the world's molybdenum. However as the Chinese steel industry produces increasing volumes of high value steel alloys, the latter figure is expected to rise significantly. In January 2009 China became a net importer of molybdenum for the first time and has since become the largest user of molybdenum in the world, with consumption expected to continue to outpace production.

The Company will use the proceeds to fund further exploration work, including exploration for extensions and infill drilling of the Project in order to produce a JORC compliant resource estimate, targeting a minimum of 300 million pounds of molybdenum by December 2011. A total of 8 drilling rigs are in the process of being deployed at the Project in one of the largest exploration programs currently underway in Mongolia.

The Project, known locally as Mandal Moly, covers an area of 2,360 hectares approximately 40 kilometres north of Tsagaan-Uul Soum, Khuvsgul Province, in northern Mongolia.

Initial broad interpretations of the Project deposit provided by independent consultants Xstract Mining on behalf of the Company, indicates an exploration target for the deposit to be between 120 and 180 million tonnes in size with a grade range of 0.12 per cent to 0.18 per cent of molybdenum. According to an independent conceptual project review prepared for Origo by Watts, Griffis and McOaut's, the Project has the potential, based on reasonable broad based assumptions to hold 190 million tonnes of molybdenum-bearing ore at an average grade of 0.1 per cent or 0.125 per cent molybdenum equivalent (including associated tungsten mineralisations). These reviews estimate that the Project could conceivably support a mine with 10 million tonnes of ore per annum production for 17-19 years.

Commenting on today's announcement, Chris Rynning, CEO of Origo said:

"We are excited that our team have been able to identify and complete an investment in this late stage exploration project which has the potential to become a significant supplier of molybdenum to China. Origo invests in mining assets which we believe have the potential to become 'Tier 1' operations with a focus on commodities with strong economic fundamentals. The relatively late stage of the project and potential "World Class" nature of the resource underline our confidence in investing in Moly World.

Growing demand from Chinese steel producers for molybdenum is expected to underpin prices over the medium term and we expect primary molybdenum producers' market share to continue to increase in the medium term. We look forward to working with Moly World's experienced management team to assist them in capturing this growth opportunity."

For further information about the Origo please visit www.origoplc.com or contact:

Notes to editors:

Origo Partners:

Origo is an AIM-listed private equity investor and strategic consultancy business which provides its shareholders with exposure to China-linked investment opportunities.

Origo has a significant portfolio of investments in a range of industrial sectors, including metals and mining, agriculture, renewable energy/clean tech and technology, telecom and media.

Origo invests directly in high growth Chinese companies as well as in companies based around the world with significant exposure to Chinese export markets.