Origo announces a world class molybdenum resource

20 March 2012

Origo announces a world class molybdenum resource at Moly World's Mandal Moly project

Highlights

·; Maiden JORC compliant resource statement of 203.4 million tonnes of ore grading 0.1261 per cent molybdenum with total contained molybdenum metal of 256,000 tons

·; Mandal Moly has high grade, near surface resource which could support a large scale open cut mine

·; Runge LLC retained to produce a scoping study which is expected to lead to the commencement of a detailed Pre-Feasibility Study

Origo Partners Plc ("Origo") is pleased to announce the completion of a maiden JORC compliant resource statement for Moly World Ltd's ("Moly World" or "the Company") Mandal Moly molybdenum and tungsten project in Mongolia ("the Project").

The results of the JORC statement of mineral resources equates to a total resource of 203.4 million tonnes of ore grading 0.1261 per cent molybdenum with total contained molybdenum metal of 256,000 tonnes. This is outlined in the table below and has been reported at a cut-off grade of 500 parts per million of molybdenum based on the preliminary results of the mining study. Runge LLC was contracted by the Company to complete a geological interpretation and mineral resource estimation within the Project area.

Table: Statement of Mineral Resources

Source: Runge LLC, Mineral Resource Estimate Mandal Molybdenum Deposit

The JORC compliant resource statement follows a seven month drilling programme on the deposit utilising eight drilling rigs in which a total of 43,235.8 meters in 152 bore holes were drilled. The ore body remains open to the south east with drilling planned to take place later in 2012 to investigate the possibility of extending the resource.

The Company is currently undertaking metallurgical test work which is yet to be completed and will be included in the mining study which is currently underway.

The Project benefits from a high grade, near surface resource which could conceptually support a large scale open cut mine producing around 27 million lbs per annum of molybdenum equivalent. In this event the Company would be ranked as one of the largest primary molybdenum producers. Following studies by independent consultants Watts, Griffis and McOaut, Origo has reason to believe that the Project could benefit from cash costs and capital intensity levels significantly below the industry average.

Runge LLC has also been retained to produce a scoping study for the Project which is expected to lead to the commencement of a detailed Pre-Feasibility Study shortly thereafter although it is possible that the project would transition directly to a Bankable Feasibility Study.

In June 2011, Origo announced the acquisition of a 20 per cent stake in Moly World, a holding company which holds a 100 per cent beneficial interest in Mongol Resource Corporation, the owner of Mandal Moly, for US$10 million. In addition, a subsidiary of Origo, Origo Resource International Ltd, has been granted an off-take covering up to 20 per cent and not less than 10 per cent of all possible production for the life of mine while Origo holds between 5 per cent and 20 per cent of an interest in Moly World which will be calculated on a pro rata basis. In the event Origo is diluted to being a 5 per cent shareholder Origo will no longer be granted an offtake.

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

"We are delighted by the results in terms of both the resource size and grade and look forward to supporting the company in reaching some major milestones this year."

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

Notes to editors:

Origo Partners:

Origo is an established private equity investor, which provides its shareholders with exposure to growth opportunities and private equity returns based on exposure to the rapidly growing Chinese economy.

Origo's business model is to generate capital gains from private equity investment in growth companies from which it also generates fees for consultancy services related to further fundraisings, M&A and strategic development. 

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

About Molybdenum

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. Demand for molybdenum grew at 7 per cent annually over the last decade with 535 million lbs of molybdenum expected to be produced in 2011.