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Geovic's Cameroon Cobalt Project Receives Favorable Studies.

GRAND JUNCTION, Colo. -- Geovic, Ltd. (Geovic) disclosed that a recently completed pre-feasibility study (PFS) and Technical Report indicate outstanding financial performance for its Nkamouna project, the first of seven laterite cobalt-nickel deposits it is developing in Cameroon, Africa.

Conducted by Pincock Allen & Holt (PAH) of Lakewood, Colo., the PFS was completed in March. PAH completed in April a Technical Report compliant with definitions and policies of Canadian National Instrument 43-101 in support of Geovic's intention to become listed on the TSX Venture Exchange in Canada.

Based on three-year average metal prices and 100 percent equity financing, the report indicates Geovic's Nkamouna project can deliver an internal rate of return (IRR) of 77 percent and a net present value (NPV) at a 10 percent discount rate of $529 million. Capital payback would be achieved in one year after production begins.

Key elements included in the PAH PFS and Technical Report:

--The Nkamouna project is estimated to contain 52 million tonnes of proven and probable ore reserves at average grades of 0.24% cobalt and 0.72% nickel.

--The ore-body averages less than 15 meters in depth and is relatively simple to mine with an average strip ratio of 1.56. Reserves are based on Canadian 43-101 definitions and meet other international standards.

--Significant additional inferred resources occur adjacent to the Nkamouna plant that may extend the project life beyond the 21 years of reserves estimated to date.

--Distinctive features of the Cameroonian deposits allow the use of inexpensive and efficient production methods.

--The unusually coarse accretions of hard cobalt mineralization in these particular deposits are readily concentrated in grade by a factor of three, resulting in the tripling of project IRR and NPV compared to processing run-of-mine ore.

--The concentrate is processed using acid leaching at atmospheric pressure, solvent extraction and pyrohydrolysis to produce high-grade cobalt and nickel oxides.

--Cash operating costs, net of nickel by-product credits, are estimated at US $0.42 per pound of cobalt.

--Total operating and capital costs are $1.44 per pound of cobalt, net of nickel credits.

--Costs during a 15-month pre-production period are estimated at $111 million of construction capital, $18 million of working capital and $18 million of expenses to build a project that will initially produce 4,000 tonnes cobalt and 3,000 tonnes nickel per year.

--Sustaining capital during the first 21 years of production is projected at $36 million.

--Production could be doubled to 8,000 tonnes cobalt per year for less than $60 million of additional capital.

Geovic plans to complete a Final Feasibility Study by April 2007 and immediately proceed to detailed engineering and design. All environmental approvals to construct and operate the Nkamouna project are anticipated by February 2007. Construction is scheduled to begin by December 2007 with production commencing in March 2009.

The PFS and 43-101 Technical report are under the supervision of Mr. Richard J. Lambert, P.E., Manager, Mine Engineering & Geological Services of PAH who is a Qualified Person as defined by NI 43-101. Geovic's Qualified Person on the project is David C. Beling, P.E., Executive VP and COO.

About Geovic, Ltd.

Geovic, Ltd. is an international mineral exploration and development company committed to creating value through sustainable practices and humanitarian investment. Headquartered in Grand Junction, Colo., the company's prime focus is on specialty and strategic metals, from prospect conception to production.

Geovic is a private Wyoming corporation that controls 60.5 percent of Geovic Cameroon PLC, which holds exclusive rights to and sole ownership of the cobalt and nickel resources. Geovic Cameroon received a Mining Convention in 2002 and a Mining Permit in 2003 encompassing 1,600 square kilometers that covers the entire cobalt mineral province. More information on Geovic and its subsidiaries is available at


This document contains certain forward-looking statements and projections regarding future production, operating costs, metals markets, competition, regulatory and environmental issues, capital spending, exploration costs, earnings, cash flow, commodity prices, resources and other considerations. The statements are based upon Geovic's current expectations and beliefs, and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those set out in this press release. Any reliance on this document by those other than Geovic management is at the sole risk of the party that so relies.
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Publication:Business Wire
Date:May 11, 2006
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