Company Information for Monterrico Metals Plc

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Company Statement

Monterrico Metals plc (Monterrico) is a resource development company incorporated in the UK and its shares are quoted on AIM, ticker code - MNA.L. Monterrico's Corporate HQ is in Hong Kong, and its principle operations are in Peru.

The Company's principal asset is the Rio Blanco copper/molybdenum deposit in northern Peru, which is one of the largest undeveloped copper resources in the world. Monterrico plans to develop Rio Blanco as a conventional open pit mine, producing copper and molybdenum concentrates. At planned production rates, Rio Blanco will be amongst the 20 largest copper mines in the world. Rio Blanco is wholly owned by Monterrico. The Company also has several other precious and base metal projects in Peru.

Monterrico is fully committed to sustainable development and to its responsibilities to the local communities and all stake holders.

Current Operations

Rio Blanco
Rio Blanco is a large porphyry copper deposit, situated at the northern end of the Peruvian copper-gold belt; this belt hosts most of Peru’s important mines and prospects.  Monterrico acquired an option on this property in 2001 and, after the results of a successful drilling programme, negotiated the acquisition of 100% of the project in 2003. The deposit lies in the lower Andes (2,200-2,800 masl) close to the border with Ecuador. The site is remote and uninhabited (nearest village 8km).

The Rio Blanco resource was calculated by the Snowden Group to JORC (2004) standards in March 2006. This resource is located principally at Henry’s Hill and is based on results from over 53,000 metres of diamond drilling (in 157 drill holes) and from samples from two adits.

The copper price used to calculate the project cash flow in the Detailed Feasibility Study was based on Bloomsbury Minerals Economics Limited forward projections of copper price from the years 2011 – 2030.  Based on these copper prices the main economic indicators of the Project over the initial five years of operation are:

• Operating costs: 41 c/lb copper (net of by-product credits)
• Average copper production: 191,000t/a
• Capital cost: $965 million direct cost, $1.44 billion total cost including indirect costs and contingencies
• Project payback period: 4 years

The mine plan focuses on treating zones of near surface supergene enrichment first, with the result that production in the first year of operation will be about 224,000 tonnes of copper in concentrate.  The mine will also produce about 1,800 tonnes of molybdenum per annum in a separate concentrate.  Average annual production over the first five years of operation will be about 191,000 tonnes of copper in concentrate, as shown above, and 2,180 tonnes of molybdenum.

Further information is provided in the press release of 5 February 2007.

Monterrico is producing an Environmental Impact Assessment (EIA) document, compliant with current World Bank guidelines, for submission to the Peruvian authorities. The EIA forms the basis for the permitting of the Rio Blanco Project and will contain a statement of social commitment and a comprehensive plan for Social Impact Assessment (SIA). The Social Programme developed by the Company has the objective of realising both a "social licence to operate" with local communities, and compliance with regulatory requirements.
The target date for plant start-up and commissioning is 2011.

Other Projects:
 - Mamanina
 - Antaymarca
 - Picomachay
 - Conaviri
 - Carisla

Geographical Spread

Peru

Board of Directors and Key Management

Huang Xiaodong	Chief Executive Officer
Shan Shan (Susan) Li	Finance Director and Company Secretary
Hu Guobin	Technical Director
Lan Fusheng	Non-Executive Chairman
Huang Wenzhou	Non-Executive Director
Harry Cooper	Non-Executive Director

Company Address Suite 1608, West Tower Shun Tak Centre 168 - 200 Connaught Road Central Sheung Wan Hong Kong, Armenia, American Samoa Telephone: + 852 2803 2195 Facsimile: + 852 2803 0878 Email: info[at]monterrico.co.uk Website: http://www.monterrico.co.uk

Additional Address/Key Contact Peru Operations Office Calle 9 #315 Urb. Corpac San Isidro Lima 27 Peru Tel: +511 226 3322 Fax: +511 226 3320 e-mail: lima@monterrico.com

Annual General Meeting July

Year End 31 December

Nominated Brokers Ambrian Partners Ltd

Nominated Advisors Collins Stewart

Major Shareholders

Xiamen Zijin Tongguan Development Co. Ltd ("Zijin Consortium") acquired a majority interest in Monterrico as a result of a recommended cash offer for the share capital of Monterrico (the "Offer"), which was agreed between the Boards of Zijin Consortium and Monterrico. When the Offer period closed on 27 April 2007, Zijin Consortium declared that it had received valid acceptances for 23,649,50 shares, representing 89.9% of Monterrico. Under the terms of the offer, the Consortium announced that it intended to retain the listing of Monterrico on AIM and planned to reduce its shareholding in the Company to not more than 70%. On 21 September 2007, the Consortium sold down its shareholding from 89.9% to 79.9%, as the first stage of this sell down.

Shareholders

Xiamen Zijin Tongguan Development Co. Ltd 21,018,903 shares (79.9%)

LS Nikko 2,630,606 shares (10%)

Information correct at 2 January 2008.

Related News

07/04/08 - Monterrico Shares Go Over the Edge, But Does Anyone Care?
23/08/07 - Monterrico and the Zijin Consortium Set Up Funds to Benefit Local Peruvian Communities Near the Rio Blanco Copper Project

Most Recent Statement

26/06/08 - Director Shareholding
10/06/08 - Annual Reports and Accounts
04/06/08 - Change of Address
30/05/08 - Directorate Change
09/04/08 - Preliminary Un-audited Results for the Year ended 31 December 2007
12/03/08 - New Management Plans Trade Off Study to Maximise Value of Rio Blanco