Kipoi Copper Project Stage 1 Construction Update

PERTH, Western Australia, Sept. 21 /CNW/ - Tiger Resources Limited (ASX/TSX code: TGS) is pleased to provide an update for the Stage 1 development at the Company's Kipoi Copper Project in the Democratic Republic of Congo (DRC).

Tiger remains on schedule and within budget for the commencement of commercial production in the first quarter of 2011. During the three-year life of Stage 1 Tiger plans to produce approximately 35,000t per annum of copper.

As previously advised, Tiger commenced the Stage 1 development at Kipoi in July 2010. Since then 106 hectares of land has been cleared by mining and civil works contractor MCK Trucks sprl for the process plant, heap leach pads, slimes storage pond, access road and haul road to the pit. The stripped topsoil has been stockpiled, ready for rehabilitation, and the plant site area has been compacted. Mining waste pre-stripping is planned to commence in early November 2010.

DRA Mineral Projects (Pty) Ltd was awarded the lump sum turnkey (LSTK) contract in July, which includes the design, construction, installation and commissioning of the heavy media separation (HMS) plant. DRA is 80 per cent through the detailed design of the HMS plant and all major component equipment has been purchased, including crusher circuit, dense media separator and the spirals. Major equipment items are being freighted to South Africa, test erected then dismantled and sent to site. Group Five Ltd will assist DRA with the site construction of the HMS plant, which is to commence in October 2010. Group Five is a highly respected South African construction company with an excellent record of delivering projects in the DRC.

Tiger has finalised recruitment of the Project Management and Operational Management Teams and is now well resourced to manage the construction and development process.

As key milestones are achieved further announcements will be issued to update progress at Kipoi.

BACKGROUND

The Kipoi Copper Project covers an area of 55 sq kms and is located 75km north-north-west of the city of Lubumbashi in the Katangan Province of the DRC. The project contains a 12km sequence of mineralised Roan sediments that host at least five known deposits: Kipoi Central, Kipoi North, Kileba, Judeira and Kaminafitwe.

The Company has reported JORC standard resources at three of the deposits. The principle deposit is Kipoi Central which contains a zone of high grade copper mineralisation within a much larger lower grade global resource.

The Company proposes a staged development at the Kipoi Project. The high grade zone of mineralisation at Kipoi Central is proposed to be exploited during the Stage 1 development. During the three year life of Stage 1 a total of 900,000tpa of 7% Cu is planned to be processed through a heavy media separation (HMS) plant to produce the equivalent of 35,000tpa of Copper.

The Company is currently undertaking a feasibility study to evaluate the economic viability of constructing an SXEW plant (Stage 2) targeted to come on stream within three years of the start of the HMS operation. It is envisaged that ore from Kipoi Central, Kipoi North and Kileba South and the other deposits within the Kipoi Project and within the nearby Lupoto Project would be processed at the Stage 2 phase.

Caution Regarding Forward Looking Statements: The forward-looking statements made in this report are based on assumptions and judgments of management regarding future events and results. Such forward-looking statements, including but not limited to those with respect to the development of a Stage 1 mining operation at the Kipoi Project involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual market prices of copper, cobalt and silver, the actual results of current exploration, the actual results of future mining, processing and development activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's filed documents. There can be no assurance that the Kipoi Project will be successfully developed, that any mineralisation previously disclosed in respect of the Kipoi Project will be proven to be economic, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits identified within the project or that future required regulatory approvals will be obtained.

For further information: in respect of the Company's activities, please contact: David Young, Joint Managing Director, Tel: [phone], Email: [email protected]; Brad Marwood, Joint Managing Director, Tel: [phone], Email: [email protected]; Reg Gillard, Chairman, Tel: [phone], Email: [email protected]; Company website: www.tigerresources.com.au