Mineral Deposits Limited: Grande Cote Continued Ramp-Up

MELBOURNE, AUSTRALIA -- (Marketwire) -- 09/25/11 -- Mineral Deposits Limited 'MDL' (TSX: MDM)(ASX: MDL) is pleased to advise of the continued ramp-up in activities of the Grande Cote Mineral Sands Project in Senegal, West Africa.

Recent major achievements have been:

--  Contract signoff with Unithai Shipyard for fabrication of the Project's
    dredge - a works package being managed by Ausenco - with the offsite
    build and commissioning expected to be completed by the third quarter of
    2012, ready for delivery to site and reassembly
--  Execution of a Letter of Intent, which is in the process of being
    formalised to an EPCM contract, with SNC Lavalin for the floating (wet)
    concentrator, mineral separation plant and associated site
    infrastructure
--  Contract signoff with Wartsila for the build of a 36MW tri-fuel (HFO,
    diesel and gas) Power Station and HFO storage facility - with completion
    due at the end of the first quarter 2013
--  Granting of a 25 year concession by the Government of Senegal for
    largely exclusive use of an existing rail line which, when upgraded and
    connected by a planned new 22km rail spur from the mineral separation
    plant, will allow for the rail of all products to the Dakar port
--  Entering into a 25 year lease over a large area of land at the Dakar
    port for bulk storage and use of a mole for ship loading
--  Agreement on land compensation rates and amounts - with compensation
    having already been distributed for certain sites and thereby allowing
    commencement of earthworks on those sites
--  Establishment of the owner's construction team.

The project is tracking well versus budget and remains on schedule for plant commissioning to occur mid-2013 and commencement of production late-2013.

About MDL

Mineral Deposits Limited (TSX: MDM)(ASX: MDL), is an Australian based mining company in the business of finding, mining and processing mineral sands resources.

Mineral Deposits owns 50% of TiZir Limited which, effective October 2011, owns the world-class Grande Cote Mineral Sands Project in Senegal, West Africa (currently being developed with production expected to commence late-2013) and an ilmenite upgrading plant in Tyssedal, Norway. Once Grande Cote reaches expected average production rates (85 ktpa of zircon and 575 ktpa of ilmenite), TiZir will be producing approximately 7% of both global zircon and titanium feedstock supply.

ABN 19 064 377 420

Contacts:

Mineral Deposits Limited

Rick Sharp

Managing Director

61 3 9909 7633

61 3 9621 1460 (FAX)
rick.sharp@mineraldeposits.com.au
www.mineraldeposits.com.au