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Duluth Metals Options Key Infrastructure Land Parcel
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TORONTO, Ontario, February 19, 2008 - Duluth Metals Limited ("Duluth
Metals") (TSX: DM) (TSX:DM.U) today announced the signing of an
exclusive option to purchase a key piece of infrastructure land called
the Dunka Pit from Cliffs Erie LLC ("CE"), a subsidiary of
Cleveland-Cliffs Inc ("Cliffs"). The acquisition of this strategic
land parcel which is in close proximity to the Duluth Metals Nokomis
Deposit would meet a two-fold objective of providing a location for
offsite processing, while fulfilling Duluth Metal's commitment to
environmental stewardship through use of an existing
brownfield/industrial location.
"The potential use of Dunka is an excellent example of the
're-utilization' of former ferrous mining sites as processing plant
locations", stated Dr. Henry J. Sandri, President and CEO. "The
recycling of existing ferrous mining sites takes advantage of
brownfield locations that have limited use, reduces the future
disturbance of area lands, and, under new regulations, can ensure that
the eventual sites are reclaimed to existing environmental standards.
The anticipated acquisition of Dunka will meet Duluth Metals' objective
of locating off site processing and re-using an existing
brownfield/industrial location." stated Dr. Sandri.
Dunka is a former iron ore / taconite open pit mine located at the
northeastern tip of the Mesabi Range iron ore deposits. Dunka was
mined first by Erie Mining Company and then later by LTV Steel Mining
Company ("LTVSMC") until 1994 and Dunka's ore, along with five other
mines, was shipped to the beneficiation facilities at Hoyt Lakes,
Minnesota for processing into pellets. CE acquired Dunka along with
other LTVSMC properties and operations when it purchased the LTVSMC
assets in 2001.
The Dunka assets include approximately 1,845 acres, including three
interconnected previously mined iron ore pits, rock berms, adjacent
lands, access routes, rights-of-way, infrastructure and utility
corridors, and operational facilities, including a water treatment
plant. Dunka is presently a brownfield site in the final stages of
remediation. After exercise of the option by Duluth Metals, the
completion of the sale would be subject to State of Minnesota
regulatory review, including the transfer of ongoing environmental and
reclamation obligations of the Dunka site to Duluth Metals.
Duluth Metals will be evaluating the Dunka site as a future
infrastructure and residual rock disposal site for the processing of
copper, nickel and platinum group metals ores from its Nokomis Deposit,
located approximately 8 kilometers (5 miles) to the northeast.
Other recent examples of the recycling of former ferrous mining
operations include CE's sales and options to sell other portions of the
former LTVSMC site. These include a sale to Mesabi Nugget (for an iron
nugget facility), a sale to PolyMet Mining, Inc. (for a copper-nickel
mining and processing facility), and an option to Excelsior Energy (for
a 603 MW coal gasification power plant).
Duluth Metals recently reported on the completion of a NI-43-101
compliant independent Scoping Study by Scott Wilson Roscoe Postle
Associates. The Scoping Study confirmed robust economics and indicate
the potential for the Nokomis Project to be one of the world's low cost
copper-nickel producers operating on a large scale over a very long
period of time. The Nokomis Deposit currently contains 347 million
tonnes of Indicated Resources and 108 million tonnes of Inferred
Resources (NI-43-101 compliant resource estimate).
David Oliver, P. Geo. and Duluth Project Manager is the Qualified
Person, in accordance with NI 43-101 of the Canadian Securities
Administrators, and is responsible for the technical content of this
press release and quality assurance of the exploration data and
analytical results.
About Duluth Metals
Duluth Metals is committed to acquiring, exploring and developing
copper, nickel and platinum group metal (PGM) deposits. Duluth Metals'
principal property is the Nokomis Deposit located within the rapidly
emerging Duluth Complex mining camp in northeastern Minnesota. The
Duluth Complex hosts one of the world's largest undeveloped
repositories of copper, nickel and PGMs, including the world's third
largest accumulation of nickel sulphides, and one of the world's
largest accumulations of polymetallic copper and platinum group metals.
About Cleveland-Cliffs
Cleveland-Cliffs Inc, headquartered in Cleveland, Ohio, is an
international mining company, the largest producer of iron ore pellets
in North America and a major supplier of metallurgical coal to the
global steelmaking industry. Cliffs operates six iron ore mines in
Michigan, Minnesota and Eastern Canada, and three coking coal mines in
West Virginia and Alabama. Cliffs also owns 80 percent of Portman
Limited, a large iron ore mining company in Australia, serving the
Asian iron ore markets with direct-shipping fines and lump ore. In
addition, Cliffs has a 30 percent interest in the Amap� Project, a
Brazilian iron ore project, and a 45 percent economic interest in the
Sonoma Project, an Australian coking and thermal coal project.
This document may contain forward-looking statements (including
"forward-looking statements" within the meaning of the US Private
Securities Litigation Reform Act of 1995) relating to Duluth Metals'
operations or to the environment in which it operates. Such statements
are based on operations, estimates, forecasts and projections. They are
not guarantees of future performance and involve risks and
uncertainties that are difficult to predict and may be beyond Duluth
Metals' control. A number of important factors could cause actual
outcomes and results to differ materially from those expressed in
forward-looking statements, including those set forth in other public
filings. In addition, such statements relate to the date on which they
are made. Consequently, undue reliance should not be placed on such
forward-looking statements. Duluth Metals disclaims any intention or
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, save and
except as may be required by applicable securities laws.
For further information: please contact Mara Strazdins, Director of
Corporate Communications, at mstrazdins@duluthmetals.com or at (416)
369-1500 or Henry Sandri, President and CEO, at
hsandri@duluthmetals.com. U.S. corporate office: telephone
651-389-9990.
Web Page: www.duluthmetals.com
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Copyright (c) 2008 DULUTH METALS LIMITED (DM) All rights reserved.
For more information visit our website at http://www.duluthmetals.com/
or send mailto:info@duluthmetals.com
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