News Releases

August 28, 2012
EMC Metals Provides Update on Nyngan Project Earn-in Dispute

Reno, Nevada -- August 28, 2012 -- EMC Metals Corp. (the "Company" or "EMC") (TSX: EMC) previously announced that it received notice of a lawsuit filed against the Company on Friday June 22, 2012 in the Supreme Court of Victoria, Australia, by our Nyngan Scandium Project partner, Jervois Mining Limited ("Jervois").

While these legal proceedings continue, Jervois contends that, among other things, the Joint Venture Agreement (including EMC's earn-in right) was automatically terminated on 29 February 2012.

On 20 August 2012, EMC filed its formal defense and a counterclaim with the Supreme Court in Victoria, Australia. In its counterclaim, EMC has sought relief that includes:

  • a declaration that it satisfied the earn-in conditions set out in clause 6.2 of the Joint Venture Agreement,
  • a declaration that upon payment to Jervois of the sum of AUD1.3 million (plus GST), EMC is entitled to a 50% interest in the Joint Venture, and
  • damages to compensate EMC for the loss that it has suffered as a result of Jervois wrongfully treating the Joint Venture as terminated.

The Court has directed that the proceeding first be referred to a court-approved mediation, assisted by an independent facilitator, and that such mediation take place by 1 October 2012. If the parties mutually agree a settlement at this mediation, that settlement will be binding upon them. This process is distinct from an arbitration, and in the absence of an agreed settlement at mediation, the matter will return to the Court for determination.

About EMC Metals

EMC owns a 100% interest in the Springer tungsten mine in Nevada, USA. Strong tungsten prices and tight supply conditions, combined with the refurbished mill and existing tungsten resource on the property, support a strategy to seek a near term restart of the Springer facility. EMC also owns a 100% interest in the Carlin Vanadium property near Carlin, Nevada. Both properties have current NI 43-101 compliant resource estimates, available on the Company website and on SEDAR.

On February 29th, 2012, EMC announced that its earn-in on the Nyngan Scandium Project was rejected by our JV partner, Jervois Mining Limited. We maintain that all project earn-in conditions outlined under the JV Agreement have been met, and we intend to take all lawful steps to secure our proprietary rights to a 50% joint venture interest.

The technical information in this news release has been reviewed by Willem Duyvesteyn, a Qualified Person as defined by National Instrument 43-101. Mr. Duyvesteyn is employed by EMC Metals Corp.

For additional information please contact:

EMC Metals Corp.

Investor Relations-Nevada:(775) 355-9500 or info@emcmetals.com, or
Sara Boatright Patterson, Windward Global, Charlotte, NC -1-704-588-8600

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

This press release contains forward-looking information that does involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements regarding long term prices for tungsten, our ability to find and retain qualified management and key technical persons to operate the tungsten project, our ability to raise the necessary capital to fund a restart of mining operations, the short term or long term economic feasibility of tungsten production at our Springer facility, and in general statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. Forward-looking information in this press release is based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice, and by other risk factors disclosed in our public filings. Except as required by law, EMC assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

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