Wednesday, February 9, 2011

Industry Watch: American Manganese President, Larry Reaugh, talks with Al @ Cambridge House

January 24th, 2011: Larry Reaugh, President and CEO of American Manganese Inc., discusses
their development in Arizona and their potential to become the lowest cost producer of
electrolytic manganese in the world.

AMERICAN MANGANESE INC. (TSX.V: AMY) is a junior resources company with its
headquarters in White Rock, part of the Greater Vancouver region of B.C. Canada. Its
focus is on mineral properties and commodities used in the Steel Industry, expanding
from its Rocher Deboule property in British Columbia with the addition of Manganese
properties in Arizona and British Columbia as well as 2 Niobium properties in B.C.

Mr. Reaugh has forty-seven years' experience in the mining industry and for the past
thirty years he has been the CEO & President of several exploration, development and
producing mining companies listed on the TSX, TSX Venture and NSDAQ exchanges.
Several of his companies have made significant discoveries, three of which (gold) went
on to be producing mines. Through his career Mr. Reaugh has raised in excess of $250
million for junior resource mining companies. Currently he is the CEO of three public
companies which fall under the aegis of The Reaugh Group: American Manganese Inc.,
Goldrea Resources Inc., and Molycor Gold Corp.

Interview Transcript:

Al: Hey I’m Al Korelin, thanks so much for joining me. We are shooting this video
in Vancouver, British Colombia at the Cambridge House investment conference. I’m
chatting with an old friend right now, Larry Reaugh. I’ve only known Larry for probably,
what, 22-25 years?

Larry: Well probably 29 years now.

Al: 29 years! We’re a couple of old warhorses. Larry is one of the more successful
guys. Let me be perfectly honest- he’s an incredibly successful persona in the mining
industry. He’s had some really really good luck over the years in terms of taking mines to
production. He’s at it again with a new company American Manganese- Their property
is in Arizona. You know it’s interesting because I just did a radio spot with Dr. Michael
Burry and his son Chris- guess what his favourite subject is right now? Manganese, and
he’s coming down to visit your property. Talk to me about the company.

Larry: Well, it’s an interesting project. We’re probably the only pure play of manganese
in the United States, but the interesting part of it is that we’re going to be producing value
added product. It’ll be the metal, called EMM, which is Electrolytic Manganese Metal,
or we could produce the EMD which is used in your batteries. That’s a pretty fair sized
market- it’s about 140,000 tonnes a year, but the metal is about 1.2 million tonnes a year,
so it’s a fair sized market. We’re looking at a 50,000 tonnes/day production. Critical
metals are now becoming the buzzword, and certainly—

Al: The buzzword! That’s the understatement of the decade.

Larry: Yeah. Critical metals, if you look at the chart in the US, you’ll find that
Manganese is at the top for critical metal. No production in manganese- it’s essential for
the military, it’s essential for the aluminum industry, and it’s essential for steel. I’ll make
a quote here. Brian Gilbertson, the CEO of Pallinghurst, used to be the CEO of BHP, his
quote is “if you don’t have manganese, you can’t make steel. If you can’t make steel, the
world stops.” Simple as that.

Al: Dead in its tracks. Tell me about your property in Arizona.

Larry: We’ve got a 43101 resource of indicated 6.7 million – billion – pounds, and
we’ve got an inferred of 8.9 billion pounds.

Al: These are 43101 numbers?

Larry: These are 43101 numbers, we’ve got a PEA, a preliminary economic evaluation
which is 43101 which states that we’re going to be the lowest cost producer of
electrolytic manganese in the world.

Al: Well how far away from production is the company?

Larry: It should be in production in 2014. We just began our pre-feasibility studies, and
we’re doing a big pilot plant test on a process which is a green process, which is water
efficient, and energy efficient, and that process is being piloted by Kemetco, and that is
underway as we speak.

Al: Interesting. Now, the company right now is trading under a dollar on the TSX venture

Larry: Yeah. It’s trading around 39 cents, and it just caught fire. We’re doing a placement
at 30 cents, which is completed, well oversold. I’m not sure exactly how much, but at
least by just under a double.

Al: Right. Interesting situation. We are going to, in the interest of full disclosure, we’re
going to be following American Manganese, they will be a sponsor on our website
beginning February first. I have to say, in the interest of full disclosure, one thing that’s
very important. I have just agreed to subscribe to that private placement, so big Al and
his lovely wife are going to be shareholders in American Manganese. I say that because
I want you to know that I’m not really at arm’s length. I’ve known this guy for a long
time- I wouldn’t be writing a cheque if I didn’t trust him. That’s point number 1. Point
2 is don’t construe this as investment advice- it is not. I am not a registered investment
advisor, I’m simply telling you what big Al is doing. Larry, thanks so much buddy.

Larry: Thanks Al.

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