Lysander to begin development at Verticalnaya North

2010-03-22 15:07 ET - News Release

Mr. Bryce Porter reports

UPDATE ON COAL INTERESTS

Lysander Minerals Corp.'s plans for developing early production from the Verticalnaya mine held by its Ukraine subsidiary, East Coal Company (ECC), are now well advanced. It is currently anticipated that development will commence with the Verticalnaya North satellite project, while development activities at the main Verticalnaya mine will ramp up as soon as possible thereafter.

Since the company acquired ECC, detailed improvements have been made at the Verticalnaya mine, and engineering work and studies have been conducted on the Verticalnaya North project.

Discussions on the financing of developments in Ukraine are currently being held.

The outlook for coal is very strong and coal production in Ukraine represents an unusual opportunity. The Verticalnaya project has made the company a leader among western coal mining companies involved in Ukraine.

An NI 43-101 technical report on the Verticalnaya project is available on SEDAR and the company's website.

           KEY PROJECT INDICATORS SHOWN IN THE REPORT

Initial capital expenditures                      $237.8-million (U.S.)
Net present value at 12 per cent                  $352.1-million (U.S.)
Internal rate of return                           35.2 per cent
Average cash operating cost per saleable tonne    $31.19 (U.S.)
Payback period                                    Seven years
Proven reserves                                   16.2 million tonnes
Probable reserves                                 11 million tonnes
Measured resources                                57.3 million tonnes
Indicated resources                               18.9 million tonnes
Total resources                                   76.2 million tonnes

Resources are inclusive of reserves.

The company is focused on the Verticalnaya project, but various other opportunities in Ukraine have been identified and are being examined.