Toledo Mining Corporation PLC announce that the MV Vinalines Queen sailed for China with 53,600 WMT of nickel ore thereby completing the first shipment of high grade, 1.8% nickel grade material from the Berong mine.

This shipment provisionally generates approximately USD 3,500,000 for Berong Nickel Corporation in which Toledo has 56.1% economic interest.

The shipment was sold to Shaanxi Energy Metals & Minerals Resources Company Limited on a spot basis taking advantage of the current high spot prices for nickel ore.

The price of USD 65 per wet metric tonne is USD 10 to USD 20 per tonne higher than BNC has been offered recently for one to 2 year supply contracts. Whilst it remains BNC's intention to tie up longer term supply arrangements, it is considered prudent to benefit from current spot prices ahead of the closure of the shipping window.

Also on Tuesday, a ship arrived to load the third and final shipment from the original, lower grade, stockpiled ore after which BNC is targeting, subject to sea conditions to make a further 2 to 3 shipments of 1.8% material before this year's shipping window closes in October.

As detailed in our Annual Report, Toledo and its JV Partners in BNC developed a plan to mine 1.8% nickel consistent with the growing demand by ferronickel producers, particularly in China for this ore type. To date, BNC has produced 207,163 WMT of 1.8% nickel grade ore.

In some of the areas being mined for this higher grade material, more saprolite ore has been found at depth than previously recorded in calculating the JORC compliant resource. This has benefited mining costs. It is not possible to know if this experience will be repeated as mining moves to other areas but it is consistent with the results of last year's drilling program in selected areas within the existing mine site.