ENVIRONMENTAL APPROVAL – Madagascar gives nod to Ambatovy

MADAGASCAR - Richmond Hill, Ontario-based DYNATEC now has the environmental permit required for the development and operation of the Ambatovy nickel project. The permit was granted by Madagascar's Office National pour l'Environnement (ONE). Full certification under Madagascar's Loi sur les Grands Investissements Minires is expected during the first quarter of next year. The project is on track for construction to begin by mid-2007.

Ambatovy is among the largest nickel projects under development in the world, with annual design capacity of 60,000 t of nickel and 5,600 t of cobalt. Proven and probable reserves are given as 125.0 million tonnes grading 1.04% Ni and 0.099% Co. It is anticipated that production costs at Ambatovy will be near the bottom of the industry cost curve.

The project is currently owned 45% by Dynatec and 27.5% by each of SUMITOMO CORP. and KOREA RESOURCES CORP. (leading a consortium of Korean enterprises including Daewoo International, Keangnam Enterprises and STX Corp.). SNC-Lavalin Inc. has agreed to acquire a 5% interest in Ambatovy from Dynatec coincident with the closing of the project debt financing, anticipated early in 2007.

See www.Dynatec.ca to watch the Ambatovy movie or view the photo gallery.