Germany

Graphit Kropfmühl Announces Natural Graphite Joint Venture

AMG Advanced Metallurgical Group NV's 79,5 % owned subsidiary, Graphit Kropfmühl is entering into a natural graphite joint venture with Extrativa / Grafite do Brasil, Belo Horizonte Minas Gerais/BR and REP Minerals, Sao Paulo/BR.

Graphit Kropfmühl and Extrativa each will own 49 % and REP Minerals will own 2 %.

The joint venture will secure raw materials for Graphit Kropfmühl, and it will manufacture and sell natural graphite for high-quality applications in Brazil and for certain export sectors. This joint venture will expand Graphit Kropfmühl's international presence and secure additional raw materials for future growth. Extrativa/Grafite do Brasil has natural graphite deposits and processing plants in Bahia/BR and is currently a supplier of graphite products to the Brazilian market. REP Minerals is currently a sales agent of Graphit Kropfmühl AG in Brazil and has extensive experience in the marketing of mineral and metal powders.

The joint venture is expected to be operational in the 2nd quarter of 2010.

Graphit Kropfmühl AG based on its secure raw material sources in Africa, China and Europe, is a specialist in the production of silicon metal and the extraction, processing and refining of natural crystalline graphite for a wide range of energy saving industrial applications.