Elemental Minerals Ltd. - The company is pleased to announce the results of the trade-off studies analysis and subsequent project definition for the remainder of the pre-feasibility study for the Sintoukola Potash Project in the Republic of Congo

PERTH, Australia, Sept. 21, 2011 /CNW/ - Elemental Minerals Ltd.

HIGHLIGHTS:

        --  The Company has completed the review of the trade-off studies
            and defined the base case project configuration.
        --  The project definition could realise improvements in capital
            and operating cost estimates as well as enhanced social and
            environmental impacts.

TRADE-OFF STUDIES RESULTS

A total of eleven trade-off studies were completed by the study team consisting of Elemental staff, SRK Consulting, AMEC Americas, EGIS International and Ercosplan significantly focussing the Company on the way forward to project and operational completion, as well as bringing operational and capital cost benefits. The combined results were evaluated considering technical, economic, social and environmental aspects and supported the following project definition for the remainder of the study:

        --  Conventional underground mechanised mining
        --  2.0Mtpa muriate of potash production capacity
        --  Road system for material transport with dedicated haul road and
            a separate light vehicle road
        --  High tonnage road train hauling system
        --  Jetty trans-loading facility near Tchiboula 36km from the mine
            site
        --  Process plant located at the coast adjacent to the ship loading
            jetty
        --  Brine disposal at the sea
        --  National grid power supply and gas off-take for drying
        --  Single status camp adjacent to the plant at the coast
        --  Phased granular capacity reaching 100% granular product
            capability.

The ongoing pre-feasibility study will continue to examine further project optimisation opportunities, including an alternative power supply utilising dedicated gas-fired power generation, which is expected to take advantage of the abundance of natural gas that is currently a waste product of the oil industry in the immediate vicinity and also the option of phasing in rail transport.

There are a number of benefits arising from the selected project configuration including:

        --  A material transport distance of 36km from the mine to the ship
            loading facility. This is a reduction of 59km compared to the
            Preliminary Economic Assessment contained in the Company's
            Technical Report (as defined below), which provides a very
            significant operating cost benefit that can be attributed to
            the reduced haul distance and the operational efficiency of
            high tonnage road trains.
        --  Increased production rates offer both capital and operating
            cost benefits that further enhance the project economics
        --  Utilisation of a dedicated haul road offers significantly lower
            health, safety, environmental and operational risk as well as
            minimising the social impact as the route is largely remote
            from populated areas.
        --  Locating the ship trans-loading facility at Tchiboula, 36 km
            from the mine site, offers very significant economic benefits
            attributable primarily to enhanced logistics, but also provides
            the opportunity to develop a dedicated facility away from
            Pointe Noire, which is likely to become increasingly congested
            over the coming years.
        --  Locating the plant at the coast adjacent the ship loader
            simplifies operational and logistics processes including water
            supply, brine disposal, final product handling, stockpiling
            facilities and gas supply. The location is also better suited
            to accommodate potential future developments from other
            exploration target areas within the Sintoukola licence.
        --  Social and environmental impacts, particularly in relation to
            the nearby Conkouati-Douli National Park, are significantly
            reduced and become more manageable by locating the plant and
            employee facilities at the coastal site.

PRE-FEASIBILITY STUDY PROGRESS

All elements of the pre-feasibility study are currently underway and are focussed on advancing the options as described above. Key field work activities currently underway include the 2D geophysics; resource, hydrogeological and geotechnical field drilling and sampling programs; and the LIDAR (light detection and ranging) survey that will deliver a high resolution topographical model of the proposed mine site and infrastructure corridors that is essential for detailed engineering design.

Various surveys now required to advance the engineering for the Tchiboula jetty ship trans-loading target area, including topography survey of the beach, bathymetry survey (including seismic reflexion), near shore geophysical survey (seismic refraction), onshore geophysical survey (seismic refraction) and preliminary onshore geotechnical survey are also underway and scheduled for completion by end of December 2011.

Remarking on the progress of the PFS, Elemental's CEO, Iain Macpherson, commented: 'The advances made by our study team are extremely encouraging. The competitive advantages arising from the quality and nature of the resource and its location adjacent to the coast are becoming ever more apparent as we progress the project. In particular, identifying a suitable location for a ship loading facility so close to the mine site that affords compelling advantages in terms of environmental impact, safety and of course enhanced project economics is a major step forward to our vision of developing into a near term low cost significant potash producer.'

Competent Person Statement:

Scientific or technical information in this release has been approved by Mr. Herve Bessan of Egis International and Dr. Neal Rigby of SRK (U.S.) Inc.

Mr. Herve Bessan is a senior civil engineer, project manager for Egis International in charge of infrastructure design (road, rail, port, power supply, surface and employees facilities, and water supply) on the project, is the qualified person responsible for reviewing and approving all the infrastructure information on this press release. Mr. Herve Bessan has given his consent to the inclusion in this press release of the Information, in the form and context in which it appears.

Scientific or technical information in this release has been approved by Dr. Neal Rigby of SRK (US) Inc., the Company's lead consultants. Dr. Neal Rigby is a Chartered Engineer and Member of the Institute of Materials Minerals and Mining.  Dr. Neal Rigby has given his consent to the inclusion in this press release of the Information, in the form and context in which it appears.

Elemental's Preliminary Economic Assessment is contained in a technical report entitled ''NI 43-101 Technical Report, Sintoukola Potash Project, Republic of Congo'' prepared by Dr. Neal Rigby of SRK Consulting (U.S.), Inc. and Messrs. Simon Dorling, Jeff Elliott, Andrew Scogings and Peter Davies of CSA Global Pty Ltd. for the Company dated August 1, 2011 with an effective date of June 10, 2011 (the 'Technical Report').  The Technical Report can be accessed on the Company's profile on SEDAR.

Forward-Looking Statements:

This press release contains statements that are 'forward-looking'. Generally, the words 'expect,' 'intend,' 'estimate,' 'will' and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, to differ materially from those expressed or implied in any of our forward-looking statements, which are not guarantees of future performance. Statements in this press release regarding the Company's business or proposed business, which are not historical facts, are 'forward looking' statements that involve risks and uncertainties, such as resource estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.

Elemental Minerals Limited

CONTACT: For further information in respect of the Company's activities,

please

contact:



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|Mark Jones |Iain Macpherson

|John Sanders |

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|Chairman |Chief Executive Officer

|Executive Director |

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|Tel: 61 (0) 41 9919 250 |Tel: 27 (0) 76 238 4461

|Tel: 27 (0) 82 445 5291 |

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|Email: |Email:

|Email: |

|markj@elementalminerals.com.au|iain.macpherson@elementalmineralsltd.com|jo

hn.sanders@elementalmineralsltd.com|

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Head Office: 27 11 469 9140



Company website: www.elementalminerals.com.au