Katanga Mining Proceeds to Procure Long-Lead Items for the Phase 4 Expansion of its Copper Cobalt Project

ZUG, SWITZERLAND, Aug. 22, 2011 /CNW/ --
ZUG, SWITZERLAND, Aug. 22, 2011 /CNW/ - Katanga Mining Limited (TSX: KAT) ('Katanga' or the 'Company') announced today that it is proceeding with the procurement of
long-lead items for the New Phase 4 expansion of the Company's copper
cobalt project to 310,000 tonnes of total copper plant capacity per
annum described in its independent technical report dated March 31,
2011 (the 'ITR').  Glencore International ('Glencore') has agreed to fund any of the Company's cash requirements for these
procurements by providing liquidity under their existing off-take
agreement.

As previously disclosed, the following changes to the New Phase 4
expansion were identified in the recently completed front-end
engineering and early works study:

    --  an additional 100ktpa solvent extraction ('SX') plant, over and
        above the 200ktpa SX plant described in the ITR, to be
        constructed in front of the existing Luilu electrowinning
        plant;
    --  the expectation that the Company will reach higher copper and
        cobalt production levels sooner than the timelines as described
        in the ITR; and
    --  an increase in expansionary capital expenditures from
        approximately $537 million as described in the ITR to
        approximately $630 million due primarily to the inclusion of
        the additional SX plant and an in-pit crusher at KOV Open Pit.

The Company will pursue financing opportunities from, among others,
Glencore to provide the necessary funding for the changes to the New
Phase 4 expansion.  Glencore is Katanga's ultimate parent company which
owns approximately 74% of the Company's shares.

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.

Forward-looking Information

This press release contains 'forward-looking information' within the
meaning of Canadian securities legislation with respect to the
Company's business, operations and financial performance and condition,
including the Company's refurbishment works associated with the Phase 4
Expansion.  Generally, forward-looking information can be identified by
the use of forward-looking terminology such as 'plans', 'expects' or
'does not expect', 'is expected', 'budget', 'scheduled estimates',
'forecasts', 'outlook', 'intends', 'anticipates', 'does not
anticipate', or 'believes', or variations of such words and phrases or
statements that certain actions, events or results 'may', 'could',
'would', 'might', 'will' or 'will be taken', 'occur', or 'be achieved'.
Statements containing forward-looking information are based on the
opinions and estimates of management as of the date such statements are
made, and they are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of activity,
performance or achievements of Katanga to be materially different from
those expressed or implied by such statements, including but not
limited to: risks relating to the refurbishment of existing facilities;
unexpected events during construction, start-up, expansion or
production; variations in ore grade or tonnes mined; future prices of
copper and cobalt; futures prices of oxide concentrate; possible
variations in ore reserves, grade or recovery rates; failure of plant,
equipment or processes to operate as anticipated; political unrest and
insurrection; acts of terrorism; accidents, labor disputes and other
risks of the mining industry; delays in the completion of development
or construction activities, as well as those factors discussed herein
or referred to in the current annual information form of the Company
filed with the securities regulatory authorities in Canada and
available at www.sedar.com . Although management of Katanga has attempted to identify important
factors that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that statements containing forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
statements containing forward-looking information. Katanga does not
undertake to update any forward-looking information or statement that
is incorporated herein, except in accordance with applicable securities
laws.

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