GEC Enviro Energy Capital Corp Com Npv

Katanga Mining Limited (TSX:KAT) ("Katanga" or the "Company") today announces
its financial results for the calendar year ended December 31, 2008.


Highlights for the calendar year ended December 31, 2008

- The Company reported a net loss for the year ended December 31, 2008 of
US$1,298.9 million, or US$6.51 per share


- Total sales for the year were US$210 million, comprising US$46 million (18,557
tonnes) for copper cathode, US$26 million (630 tonnes) for cobalt metal, and
US$138 million (47,158 tonnes) for cobalt concentrate sales.


- The Company has taken account of the precipitous decline in the copper and
cobalt prices in the fourth quarter of 2008 and the deterioration in the credit
markets as well as revised production plans developed by the Company. In
response to these factors the Company has had to test its mineral properties for
impairment. The Company has calculated a total of US$1,544.4 million in
'fairvalue' impairment write-downs (comprising US$1,498.3 million for mineral
properties as well as US$46.1 million write-down of inventories to net
realizable value). A corresponding future income tax liability of US$608.5
million was reduced by US$386.4 million on booking the impairment. The net loss
for the year therefore included US$1,158.0 as a result of the impairment.


Outlook

- For 2009, the Company expects to achieve targeted production of 45,500 tonnes
of copper cathode and 4,000 tonnes of cobalt metal.


- During the first half of 2009, the Company needs to raise an additional US$250
million in equity and/or debt financing. Once US$250 million is raised in debt
and/or equity, the full amount of the Glencore (and RP Explorer) facility, $265
million, will be mandatorily converted into equity, further strengthening the
Company's balance sheet. See Press Release February 11, 2009.


- The Company has undertaken a comprehensive review of its operational costs and
has already started to implement cost savings the full benefit of which will be
seen in the second half of 2009. 


- An independent technical report has been commissioned to encompass the
combined joint venture's 23 years of production and incorporate the latest cost
estimates, commodity prices and new mineral reserve statement. The new technical
report prepared in accordance with National Instrument 43- 101 is filed on SEDAR
at www.sedar.com. Please see Press Release No. 5 dated March 31 2009 for
details.


- The DRC Government Mine Contract Review is complete. The Company has agreed
with La Generale des Carrieres et des Mines ("Gecamines") the basis on which the
amended joint venture agreement will be finalized. The final form of the amended
joint venture agreement and the merger of the Company's operating companies in
the DRC is expected to be completed in the second quarter of 2009. Please find
below a summary of the current status of negotiations. Please also refer to the
Company's Annual Information Form for further details filed on SEDAR at
www.sedar.com


Status of Negotiations with Gecamines Relating to the Merger of the KCC and DCP
Joint Ventures ("Merged JV Company")


Transfers of Exploitation Permits, Infrastructure and Other Necessary Surfaces

The parties have now agreed the perimeters of the transfers of the KCC/DCP
concession area deposits. This shall include the following permits which will be
transferred from Gecamines to the Merged JV Company:


- the whole of Exploitation Permit (EP) 525 (comprising 13 carres containing the
Kamoto and Mashamba East deposits);


- part of EP 4958 (comprising 2 carres containing the T17 deposit).

It has also been agreed with Gecamines that all installations and
infrastructures within the perimeter of the KCC/DCP concession area shall be
rented by Gecamines to the Merged JV Company, with rental being covered by the
royalties. Katanga has agreed that the KZC concentrator at Kolwezi will be
returned to Gecamines who will re-employ following the transfer of former
Gecamines employees.


The DCP exploitation permits shall be transferred to the Merged JV Company as
part of the merger process.


As set out in the agreement between Gecamines, KFL Limited and KCC dated
February 8, 2008 relating to the release of the Dikuluwe and Mashamba West
deposits ("Concession Release Agreement"), the perimeter of the merged the
KCC/DCP concession area will contain the surface necessary for the proper
operation of the current activities of the merged joint venture company,
including space for dumps, storage sites, tailings and new infrastructure (the
"Necessary Surfaces"). The Necessary Surfaces will be sourced from adjacent
exploitation permits. Once the Necessary Surfaces have been determined, they
shall be rented to the Merged JV Company on an interim basis, pending drilling
to determine whether the surfaces identified contain any mineral reserves.
Provided no reserves are discovered, the relevant surfaces shall be transferred
(or in certain cases leased) to the Merged JV Company.


Replacement Deposits

Gecamines shall have the right to undertake exploration activities to find
replacement reserves of some 3,992,185 tonnes of copper and 205,629 tonnes of
cobalt. Such exploration activities can take place within and outside the
exploitation permits being transferred to the Merged JV Company. Any deposits
found within the perimeters of the exploitation permits transferred or to be
transferred to the Merged JV Company (other than the deposits, or extension of
the deposits at Kamoto, Mashamba East, Tilwezembe, Kananga, T17 and KOV) shall
be considered as replacement reserves, as well as any other deposits discovered
in other perimeters belonging to Gecamines the exploitation of which may be
transferred to the Merged JV Company.


As at July 1, 2015, to the extent that there is a shortfall in replacement
deposits, the parties shall calculate the proportion of the shortfall and the
financial compensation payable shall be calculated as the shortfall percentage
multiplied by US$285,000,000. This amount (US$ 285m) has been arrived at by
discounting back to July 1, 2015 the net cash-flows attributable to the mining
of the reserves, excluding resources, returned to Gecamines. Any amounts not
paid at that time shall bear interest at the rate of 6 month LIBOR plus 3 per
cent. Any future payments of dividends and royalties due after July 1, 2015 from
the Merged JV Company to Gecamines can be withheld and set off against any
outstanding amounts.


Share Capital and Financing

The share capital of KCC shall be increased to US$100 million. It has been
agreed that the 25% equity interest of Gecamines and its subsidiary shall be
non-dilutable. Katanga Mining Limited or one of its wholly-owned subsidiaries
shall advance to Gecamines and its subsidiary the subscription amount of US$24.5
million payable by them in respect of the capital increase. Such advance shall
form part of the pas-de-porte payment described below, and consequently shall
not be repayable by Gecamines.


Dividends shall be distributed proportionate to the equity stakes of the
shareholders in the merged joint venture company. Of the available cashflows of
the Merged JV Company, 25% shall be used to pay dividends and 75% shall be used
to repay shareholder and other borrowings.


Following the establishment of the Merged JV Company, 5% of the future funding
requirements of the Merged JV Company shall be met by non-interest bearing
equity financing from KFL and Global Enterprises Corporate Limited ("GEC"),
until the project reaches its production target of 150,000 tonnes of copper
output per year.


Rental, Royalty and Pas de Porte

A royalty shall be payable to Gecamines by the Merged JV Company for the use of
the equipment and facilities as well as the depletion of the deposits. This rate
is set at 2.5% of net revenues calculated in the same manner as royalties
payable under the DRC Mining Code, namely sales less transportation, quality
control, insurance and marketing costs.


A "pas de porte" ("entry premium") payment shall be payable by KFL/GEC to
Gecamines for the access to the project. The total amount shall be US$140
million, of which US$5 million has already been paid, payable in installments on
an agreed schedule until 2016.


No further pas de porte will be payable in respect of the replacement reserves
to compensate for the release of Dikuluwe and Mashamba West; however, any
additional tonnage brought by Gecamines to the merged joint venture company
after the released deposits have been fully compensated will incur a new pas de
porte payment of US$35 per tonne of copper.


Board and Management

As previously announced, the board of directors of the Merged JV Company will be
increased to eight members, three of whom will be appointed by Gecamines. In
addition, it has been agreed that the CEO will be appointed by KFL/GEC, and the
deputy CEO will be appointed by Gecamines. A management committee shall be
constituted, comprising the CEO, deputy CEO, three employees of the merged joint
venture company appointed by KFL / GEC, and one employee of the merged joint
venture company appointed by Gecamines.


The Kamoto Operating Limited Operating Agreement will be terminated on or before
September 30, 2009.


Katanga's Financial Statements and Management Discussion and Analysis for the
quarter are filed on SEDAR, www.sedar.com


About Katanga Mining Limited

Katanga Mining Limited operates a major mine complex in the Democratic Republic
of Congo producing refined copper and cobalt. The company has the potential to
become Africa's largest copper producer and the world's largest cobalt producer.
Katanga is listed on the Toronto Stock Exchange under the symbol KAT.

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