Kvanefjeld Feasibility Study Underway: Metallurgical Developments Continue to Advance and De-Risk Process Flow Sheet

PERTH, AUSTRALIA -- (Marketwire) -- 09/20/12 -- Greenland Minerals and Energy Ltd. ("GMEL" or "the Company") (ASX: GGG)(OTCBB: GDLNF) is pleased to provide an update on the status of process development for the Kvanefjeld multi-element project ("Kvanefjeld").

Check Here for full ASX Announcement.

Following an intensive flow-sheet selection study conducted during 2011, a simple and elegant flow-sheet has been selected by the Company as the most suitable method to process Kvanefjeld ore. This flow-sheet, incorporating concentration via froth flotation and subsequent atmospheric leaching, formed the basis of the Company's Prefeasibility Study into Kvanefjeld, which was released in May 2012. The Prefeasibility Study indicated the clear potential for Kvanefjeld to be developed as a long-life, cost-competitive producer of heavy and light rare earth elements (REEs), uranium oxide and zinc.

Importantly, the process flow-sheet has been developed in conjunction with a systematic and comprehensive test work program, thereby providing a high level of confidence in its viability. The metallurgical development of the flow-sheet is well advanced and a significant level of process design work has already been completed.

Metallurgical Test Work Program Highlights

--  Completed over 250 tests relating to the concentrator (beneficiation)
    circuit

--  Feasibility process design of concentrator circuit almost complete

--  Completed over 50 tests relating to the refinery circuit

--  Feasibility process design of refinery well advanced

GMEL's (mining exploration company) test work programmes have been very effective in de-risking process design for both the concentrator and the refinery. As a result, the Company is now in a position to commence planning for the operation of pilot plant(s) as the next step in process development.

In addition, as a result of the work that has been completed on process design, process engineering for a feasibility study is well advanced.

GMEL's Metallurgical Advantages

The two most important metallurgical attributes that a rare earth project requires in order to lay the foundations for commercial success are:

1.  The ability to beneficiate ore into a high grade mineral concentrate;
    and

2.  The ability to achieve high recoveries of rare earths from concentrate
    without having to develop complex and expensive metallurgical processes.

The Kvanefjeld flow-sheet embodies both of these attributes. The flow-sheet beneficiates Kvanefjeld ore with an industry-leading upgrade ratio and refines the mineral concentrate utilising a simple atmospheric acid leach process.

The flow-sheet produces high metal extractions without requiring complex and costly high-temperature mineral cracking processes that are commonly required owing to the refractory nature of many rare earth deposits.

To read the full ASX announcement go to: (http://www.ggg.gl/docs/ASX-announcements/Technical-Update-Process-Maturity-Risk.pdf).

Contacts:

Greenland Minerals and Energy Ltd.

Roderick Mcillree

Managing Director

+61 8 9382 2322
www.ggg.gl