OREANDA-NEWS. On May 05, 2008 EURASIAN NATURAL RESOURCES CORPORATION PLN, common shares of which are traded in the official list of Kazakhstan Stock Exchange (KASE) of category "A", provided KASE with the press release as follows, reported the press-centre of KASE:

Eurasian Natural Resources Corporation PLC ('ENRC' or, together with its subsidiaries, the 'Group'), the holding company of a leading diversified natural resources group with integrated mining, processing, energy and logistical operations based in Kazakhstan, announced the exercise of an option to acquire a 50% interest in Bahia Mineracao Limitada ('BML'). The 50% interest in BML is being acquired from Zamin BM NV ('Zamin') for a cash consideration of US\\$300 million.

BML is a Brazilian company focused on the development of an iron ore deposit in the Bahia State of Brazil. ENRC believes that BML has a high-quality asset base. As part of an ongoing pre-feasibility study, SRK Consulting have produced a Mineral Resource Statement which reports, according to JORC guidelines, 470 million tonnes of combined Measured and Indicated Mineral Resource at 39% iron content and an additional 1,490 million tonnes of Inferred Mineral Resource at 30% iron content.

BML's management team has extensive experience of developing similar resources. Good progress has already been made in developing an infrastructure plan and BML has engaged the support of key contractors, including SRK Consulting and Construcoes e Comercio Camargo Correa S/A, to develop the project.

ENRC is confident that the iron ore market continues to offer attractive opportunities, particularly in view of the recent growth in the price of and relative demand for iron ore. ENRC believes that the acquisition of this stake will further enhance ENRC's position in the iron ore market; ENRC's Iron Ore Division produces 17 million tonnes of iron ore concentrate annually.

Commenting on the acquisition Dr. Johannes Sittard, Chief Executive Officer of ENRC, said, "We are excited by the prospects and the fundamentals of the iron ore industry. With this outlook we particularly welcome the opportunity to acquire an interest in BML. At full output this project could support an operation producing in excess of 20 million tonnes of concentrate per annum. We are confident that in time the acquisition will enhance shareholder value."

Armando Santos, Chief Executive Officer of BML, said, "In addition to the very favourable market conditions supporting the development of this project, we are delighted by the strong governmental support to BML in the State of Bahia,  including the environmental authorities, which we expect to facilitate the implementation programme."

Credit Suisse Securities (Europe) acted as sole financial advisor to ENRC for this acquisition.