Orsu Metals Corporation: Grant of Exclusive Right to Explore

Orsu Metals Corporation: Grant of Exclusive Right to Explore the East
Balkhash 2 Licence Area in Kazakhstan 
LONDON, UNITED KINGDOM -- (Marketwire) -- 11/12/12 --  

--  Orsu has been granted the exclusive right to form a joint venture and to
    explore the East Balkhash 2 license area in Kazakhstan, host to a 30 km
    long Dzharyk-Taisogan cluster of copper-polymetallic occurrences. 
--  Historical exploration works at the Taisogan prospect identified
    concealed porphyry style copper mineralization over an area of 3.5x0.5
    km, with grades of 0.28% to 0.35% Cu over 93 to 208 m intercepted in
    Soviet vertical drillholes C-67 and C-70. The Taisogan prospect is
    accompanied by several copper-polymetallic occurrences, with most
    historic drilling at the Dzharyk IV prospect which outcrops over 500m
    and another 500m concealed under younger cover based on geophysical
--  Soviet era drilling intercepted three intervals in one hole (N10): 
    --  7m grading 1.3% Cu (from 87 to 94m), 
    --  12m grading 4.1% Cu (from 98 to 110m) and, 
    --  21m grading 5.8% Cu (from 114 to 135m). 
--  The by-product mineralization recorded in historic drill data includes
    silver (with grades ranging from 20 g/t to 100 g/t), lead and zinc
    (ranging from 0.1% - 0.2%). 
--  Recent drilling at the Dzharyk IV prospect in 2011 by Asem Tas has
    intercepted a breccia system with: 
    --  35.1m grading 0.98% Cu, 20.21 g/t Ag and 0.2 g/t Au (Hole 2 from 19m
        depth); and, 
    --  20.9m grading 0.46% Cu, 47.57 g/t Ag and 0.29 g/t Au (Hole 6 from
        28m depth). 

Orsu Metals Corporation ("Orsu" or the "Company"), the dual listed
(TSX:OSU)(AIM:OSU) London-based base and precious metals exploration
and development company today announces that it has entered into an
exclusivity agreement to jointly explore the East Balkhash 2 licence
area in Kazakhstan ("Balkhash Project") with Asem Tas-N LLC ("Asem
Tas"), a privately owned Kazakh registered company and owner of the
subsoil use contract for the Balkhash Project (the "Agreement").  
Summary of the Agreement  
A summary of the key terms of the Agreement with Asem Tas to jointly
explore the East Balkhash 2 licence area in Kazakhstan is
 set out

1.  Orsu is granted the exclusive right for a period of 175 days, ending in
    April 2013, subject to extension by mutual agreement of the parties (the
    "Exclusivity Period"), to explore and participate in the Balkhash
2.  During the Exclusivity Period, Orsu will provide funding for exploration
    works at the Balkhash Project in the amount of approximately $0.77
    million during the remainder of 2012 and $0.13 million in 2013 in
    accordance with a contractual working programme to be agreed by both
    parties ("Initial Working Programme").  
3.  Orsu may terminate its funding at any point before the earlier of the
    effective transfer of the exploration licence or the end of the
    Exclusivity Period. Where the approval of the relevant authorities for
    the transfer of the license is not received due to a breach by Asem Tas,
    or the Kazakh Government exercises its pre-emptive right to acquire the
    license during the transfer process, Asem Tas is required to refund Orsu
    for its expenditure in connection with the Initial Working Programme. 
4.  During the Exclusivity Period, Orsu will conduct technical, legal and
    financial due diligence of the Balkhash Project, including geophysical
    works and verification drilling of exploration targets. The technical
    due diligence will include further exploration and inspection works to
    be performed jointly by Asem Tas and Orsu. 
5.  Upon completion of the due diligence to the satisfaction of Orsu, Asem
    Tas will apply to transfer the exploration licence to a newly formed
    Kazakh legal entity jointly owned by Orsu and Asem Tas ("Joint Venture
    Company"), which will be a subsidiary of Orsu, with Orsu holding an
    effective interest of 55%. A transfer of the exploration licence to the
    Joint Venture Company will be conditional upon obtaining a formal waiver
    of the Kazakh Government's pre-emptive right. 
6.  On effective transfer of the exploration licence, Orsu has agreed to pay
    Asem Tas: 
    a.  up to $1.5 million to compensate Asem Tas for historical exploration
        costs incurred prior to 2012 (excluding any costs funded by Orsu) on
        effective transfer of the exploration licence, 
    b.  $20 per tonne of economically extractable copper equivalent, up to a
        maximum of $10 million, less any amount paid under a. above, on or
        before completion of a positive preliminary economic assessment
        study, and 
    c.  $20 per additional tonne of economically extractable copper
        equivalent, up to a maximum of $15 million, less any amounts paid
        under a. and b. above, on completion of a positive definitive
        feasibility study. 
7.  Orsu will finance the works until completion of the definitive
    feasibility study and Orsu will be responsible for debt financing of the
8.  Under the terms of the agreement, Orsu will have the right to buy-out
    all or part of the interest of Asem Tas in the Joint Venture Company,
    for cash or shares, at a price determined by an independent expert. 

About the East Balkhash 2 licence area  
The East Balkhash 2 licence covers an area of approximately 6,000 km2
in the Eastern Kazakhstan Administrative Region (Fig. 1). It is
located immediately west of the Aktogay-Aidarly porphyry copper
deposits, which are owned by Kazakhmys PLC (source: Kazakhmys Annual
Report 2012). According to the results of a pre-feasibility study
released by Kazakhmys, the Aktogay deposit has an estimated oxide
mineral resource containing 119 million tonnes of mineralization
grading 0.37% copper and a sulphide mineral resource of 1,148 million
tonnes of mineralization grading 0.38% copper. Overall, the deposit
is estimated to contain nearly 5 million tonnes of copper along with
molybdenum and silver by-products. In addition, based on mineral
resource estimates released by Kazakhmys PLC, the Aidarly porphyry
copper deposit, located some 4 km northwest from Aktogay, contains
1,529 million tonnes of mineralisation with 0.38% copper in the
Measured and Indicated categories, indicating that it comprises 5.8
million tonnes of copper along with molybdenum and silver
by-products. Based on the results of the pre-feasibility study of the
Aktogay deposit and the mineral resource estimates for the Aidarly
deposit released by Kazakhmys PLC, in aggregate the two adjacent
deposits contain an estimated 11 million tonnes of copper along with
molybdenum and silver by-products. The feasibility study for Aktogay
is expected by the end of 2012, with anticipated first production in
Based on Orsu's review of the information made available, the geology
of the Balkhash Project Area is principally similar to the
Aktogay-Aidarly deposits area. It comprises Carboniferous to Permian
volcano-sedimentary and intrusive sequences, part of the
Balkhash-Yili magmatic arc that hosts Aktogay-Aidarly, Sayak, and
Kounrad copper deposits located within 50 to 200 km distance from the
Balkhash Project Area. The magmatic arc assemblages are overlain by
Triassic to Jurassic lacustrine and Cenozoic sedimentary basin and
alluvial sequences, covering app
roximately 50 percent of the Balkhash
Project Area, which comprises numerous copper occurrences, discovered
and partially drill tested in the 1970s and 1980s. No exploration
activity was undertaken since the middle 1980s until 2008. No
approved historical Soviet or JORC-compliant mineral resources exist
for mineral prospects within the Balkhash Project Area.  
Asem Tas registered a subsoil use contract with the Government of
Kazakhstan on 10 November 2008 under which it has the right to
explore for copper until the end of 2014. The exploration stage can
be extended for four years until 2018. From 2008 to date, Asem Tas
undertook exploration activity, including prospecting, geochemical
sampling, geophysical surveys and trenching. This was supplemented by
scout exploration drilling by Asem Tas in 2011 to early 2012,
totalling 1,522 m.  
To view Figure 1, please visit the following link:
Based on the historical results and further exploration works
completed by Asem Tas, and a site visit by Orsu, management believes
that the Dzharyk-Taisogan cluster of copper-polymetallic occurrences,
striking for 30 km west-northwest and located in the southwest of the
license area (Fig. 1), may be considered as the most advanced
prospects within the Balkhash Project. The Taisogan prospect is
completely concealed under 20 to 45m of Quarternary alluvial
sediments. Historical drilling at the Taisogan prospect was widely
spaced, with individual vertical holes located 400 to 500m apart.
Several holes intercepted porphyry style mineralization, which has
been interpreted to occupy an area of 3.5 x 0.5km based on a
combination of drilling and magnetic survey data. The most
significant mineralization was intercepted in Soviet holes C-67 and
C-70, which were drilled to depths of 288m and 223m respectively.
Depending on the applied cutoff grade, the average grade of copper
mineralization in these two holes varies from 0.28% to 0.35% over 93
to 208m of vertical thickness, with hypogene sulfide (chalcopyrite
and pyrite) and supergene oxide and sulfide enrichment mineralization
(malachite and chalcocite). Historical assay data indicates the
presence of molybdenum and silver, with some occurrences of gold. No
additional exploration drilling has been performed within the
Taisogan prospect since Soviet times. (source: Asem Tas) 
The Taisogan prospect is accompanied on its northern periphery by
several mineral occurrences within 2 to 5 km distance, called Dzharyk
I to Dzharyk VIII, which were tested by scout exploration holes in
the 1970s. Most of these occurrences are of copper-polymetallic
nature. At the most drilled Dzharyk IV prospect is the outcropping
linear breccia system, outcropping over some 500 m in the
northeastern direction. The breccia bodies consist of angular
volcanic and intrusive rocks cemented by
epidote-chlorite-quartz-calcite aggregate. The massive to
disseminated sulfides are pyrite, chalcopyrite, sphalerite, galena,
chalcocite, and rare bornite. Magnetic and electric survey data
indicate that this system may continue for another 500m to the
southwest. Soviet era drilling (14 holes totaling 2,861 m) and
drilling by Asem Tas (10 holes totaling 1,522 m) at the Dzharyk IV
prospect returned several intercepts with potentially economic
mineralization. The best Soviet hole N10 has intercepted three
intervals: 7 m grading 1.3% Cu (from 87 to 94 m), 12 m grading 4.1%
Cu (from 98 to 110 m), and 21 m grading 5.8% Cu (from 114 to 135 m).
The assays have revealed presence of silver (20 to 100 g/t), lead and
zinc (0.1-0.2%). It should be noted that core from Soviet drilling
has not been preserved and the Company only has access to the results
disclosed in this new release. The Company will have to make its own
appraisal of these results. 
All holes were drilled by Asem Tas at 75 degrees dip. It is estimated
that the true width of the reported intervals varies from 10 to 20m.
The core, drilled by Asem Tas, was initially assayed using emission
spectrometry technique by GeoAnalitika laboratory, based in Almaty,
Kazakhstan, which is independent of both Orsu and Asem Tas. All
samples, which showed more than 0.1% Cu, were then assayed using
chemical and atomic absorption techniques. However, Asem Tas has to
date only been able to assay some core using chemical and atomic
absorption techniques. In particular, drilling by Asem Tas at Dzharyk
IV has intercepted: 35.1 m grading 0.98% Cu, 20.21 g/t Ag and 0.2 g/t
Au (Hole 2 from 19 m depth) and 20.9 m grading 0.46% Cu, 47.57 g/t Ag
and 0.29 g/t Au (Hole 6 from 28 m depth). The Company only has access
to the results from Asem Tas that are disclosed in this news release
and will seek to verify these results as part of its due diligence. 
As part of Initial Working Programme, Orsu plans to completely re-log
and re-assay the core drilled by Asem Tas. In addition, the Initial
Working Programme includes an electric geophysical survey of the
Dzharyk-Taisogan cluster and approximately 2,000 m of core drilling
to assess the first priority targets within the cluster.  
Dr Sergey V Kurzin, Executive Chairman of Orsu, commented: "The
agreement to jointly explore the East Balkhash 2 license area
provides the Company with a framework to participate in this early
stage project in one of the largest exploration areas in Kazakhstan
with excellent potential to complement the Company's strategic focus
on copper projects in Eastern Kazakhstan. This agreement demonstrates
management's commitment to implement its strategy of developing
Karchiga in parallel with identifying good quality exploration
opportunities, which may increase the Company's resource base, in the
strategically important region of Eastern Kazakhstan." 
Notes to Editors:  
1. Dr Alexander Yakubchuk, Chief Operating Officer for Orsu and a
qualified person as such term is defined in National Instrument
43-101 and for the purposes of the AIM Guidance Note for Mining, Oil
& Gas Companies, has reviewed the contents of this press release.  
2. All $ figures are United States Dollars unless otherwise
This press release contains forward-looking information which is not
comprised of historical facts. Forward-looking information involves
risks, uncertainties and other factors that could cause actual
events, results, performance and opportunities to differ materially
from those expressed or implied by such forward-looking information.
Forward-looking information contained or referred to in this press
release includes, but may not be limited to, the expected exploration
activities by the Company related to, and the general development of,
the Balkhash Project area, the anticipated funding of exploration and
other costs by Orsu, management's expectations relating to the
potential and quality of the Balkhash Project and the potential
increase in the Company's resource base, and the estimates and
forecasts relating the Aktogay deposit. 
Factors that could cause actual results to differ materially from
those described in such forward-looking information include, but are
not limited to, uncertainties in the interpretation of drill and test
results, risks normally incidental to exploration and development of
mineral properties, the possibility that future exploration,
development and/or mining results will not be con
sistent with
expectations, the Company's inability to raise additional finance as
and when needed, the Company's inability to obtain, maintain, renew
and/or extend required licences, permits, authorizations and/or
approvals from the appropriate regulatory authorities (including an
inability to obtain the waiver of the Kazakhstan Government's
pre-emptive right in connection with the Balkhash Project licence
transfer application) and other risks relating to the regulatory
framework in Kazakhstan, adverse changes in the political environment
in Kazakhstan and the laws governing the Company, its subsidiaries
and their respective business activities, uncertainties in the
assumptions used, and the methodologies employed in, the technical
information referred to herein, uncertainties in mineral resource
estimates, adverse changes in commodities prices, as well as certain
other risks set out in the Company's public documents, including its
annual information form dated March 30, 2012, filed under the
Company's profile on SEDAR at www.sedar.com.  
The forward-looking information in this press release reflects the
current expectations, assumptions and/or beliefs of the Company based
on information currently available to the Company. In connection with
the forward-looking information contained in this press release, the
Company has made assumptions about: the Company's business, the
economy and the mineral resources development and extraction industry
in general; the Company's ability to raise required additional
financing; the ability to obtain, maintain, renew and/or extend
required permits, licenses, authorizations and/or approvals from the
appropriate regulatory authorities (including in connection with the
Balkhash Project licence transfer application); and the ability to
continue to obtain qualified staff and equipment in a timely and
cost-efficient manner to meet demands. The Company has also assumed
that no significant events occur outside of the Company's normal
course of business. Although the Company believes that the
assumptions inherent in the forward-looking information are
reasonable, forward-looking information is not a guarantee of future
performance and accordingly undue reliance should not be put on such
information due to the inherent uncertainty therein. 
Any forward-looking information speaks only as of the date on which
it is made and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any
forward-looking information, whether as a result of new information,
future events or results or otherwise.
Orsu Metals Corporation
Dr Alexander Yakubchuk
Chief Operating Officer
+44 (0) 20 7518 3999
Canaccord Genuity Limited
Andrew Chubb
+44 (0) 20 7523 8000 
Vanguard Shareholder Solutions
+1 604 608 0824
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