MZI Resources Ltd.: Keysbrook Mineral Sands Project Officially Opened

Perth, Australia - MZI Resources Ltd. (ASX:MZI) is pleased to announce the official opening of its flagship Keysbrook Mineral Sands Project today by the Honourable Tony Simpson, MLA for Darling Range, and Western Australia's Minister for Local Government; Community Services; Seniors and Volunteering; Youth.

The opening of the Keysbrook Project, 70km south of Perth, follows the successful commencement of operations at the $75 million project in October 2015, and the commencement of mineral sands product sales in December 2015.

The Project represents one of the largest new project developments in the Peel Region in recent years, and is designed to produce over 95,000 tonnes of high value mineral sands products annually for export to global customers.

Keysbrook is also WA's first - and the world's largest - primary producer of leucoxene, a naturally occurring high value alternative to rutile as a source of titanium dioxide used in pigments for paints and paper, and in the production of lightweight titanium metal. It is also a major producer of zircon concentrate used in ceramics, refractories and specialty industrial applications.

MZI Managing Director Trevor Matthews said "Today's official opening of the Keysbrook Project is a tremendous milestone not just for MZI and all those who have worked tirelessly to bring it to fruition, but also for the broader Peel region and WA. Keysbrook represents a unique type of mining project that is closely integrated with the surrounding communities, with almost 90% of employees living within a half hour's drive and a number of local suppliers and contractors providing services to the site.

"It is also a sustainable project with a light footprint that shows mining and environmental stewardship are not mutually exclusive. With total Ore Reserves equivalent to over 15 years of production, we look forward to Keysbrook being a major contributor to the Peel region for many years to come."

The Keysbrook Project represents a major positive addition to the Peel economy, with a strong focus on maximising local content. Almost 90% of Keysbrook's 60 workers reside within a 30 minute radius of the site, while the operation has to date engaged the services of a number of local contractors and suppliers.

MZI is committed to partnering with its host communities through a wide range of community investment initiatives and vocational development programs (see over for details).

Keysbrook is also a sustainable business with a light environmental footprint. Ore processing is chemical free and involves sluicing, screening and gravity separation of naturally occurring sands to produce heavy mineral concentrate which then undergoes simple electrostatic and magnetic separation at a facility near Bunbury to produce the final zircon and leucoxene products. There is no waste, with over 85% of all process water recycled, and more than 97% of extracted material returned to the mined area, following which the land is progressively rehabilitated to its pre-mining state. The first phase of rehabilitation work has commenced on the initial pre-mining void, which has been backfilled. Typically, rehabilitated land will be available for grazing within 2 - 3 growing seasons.

KEYSBROOK BENEFITS AT A GLANCE

- Largest new project development in Peel region in recent years (approximately $75 million)

- WA's first, and the world's largest, primary producer of leucoxene

- Approximately $40 million spent annually for labour, supplies and services, predominantly within WA

- Direct employment for 60 mining and process workers, plus substantial contractor and third party employment associated with related activities, including product transport, equipment maintenance, and final processing of Keysbrook concentrate at Doral's Picton facility.

- Locally based workforce - almost 90% of Keysbrook employees reside within a 30 minute radius of the site

- Substantial participation by locally based contractors and suppliers, including local steel fabrication

- Major supporter of local community initiatives, including $50,000pa in direct funding for distribution through the Keysbrook Community Consultative Group, targeting:

-- Local schools
-- Local bushfire and emergency services
-- Sporting clubs
-- Youth groups
-- Community organisations

- MZI has entered into a strategic partnership with Fairbridge Western Australia Inc. to help achieve positive sustainable change in the lives of young people, their families and communities in the local area, including the Fairbridge Bindjareb program to help provide indigenous inmates with lasting work opportunities on their release from local correctional facilities. MZI employed its first graduate from the program in January 2016.


About MZI Resources Ltd:

MZI Resources Ltd. (ASX:MZI) is a mineral sands producer focused on the high value minerals of zircon and leucoxene, and owns the newly commissioned Keysbrook Mineral Sands Mine, 70 km south of Perth in Western Australia.

Development of Keysbrook was completed ahead of schedule and within budget in October 2015, and completed its first shipment of zircon concentrate in December 2015. Keysbrook is designed to produce approximately 96,000 tonnes of zircon concentrate and leucoxene annually, with over 85% of all planned production committed under offtake contracts with blue chip international customers.



Contact:

MZI Resources Ltd.
Trevor Matthews, Managing Director
T: +61-8-9328-9800
E: admin@mzi.com.au
www.mzi.com.au