MEDIA RELEASE Wednesday June 2, 2010 Australian shareholders overwhelmingly back emergence of Perths Rusina on global nickel stage Australias Perth-based Rusina Mining NL (ASX code: RML, AIM code: RMLA) is set to morph into one of the worlds most advanced nickel laterite developers and producers after a vote by shareholders in Perth today overwhelmingly supported its merger with London-based and fellow nickel laterite play, European Nickel PLC (AIM, PLUS: ENK) The merger, via a Scheme of Arrangement, will create an enlarged nickel laterite entity to be known as ENK, with a combined resource and asset base of 1.35 million tonnes of contained metal across six projects in Turkey, the Philippines and Albania. ENK will have as its management helm, Rusinas current Managing Director, Mr Robert Gregory and Chief Financial Officer, Mr Mark Hanlon, taking the positions of Managing Director and Finance Director respectively. Mr Gregory said the union cleared the way for at least two of ENKs projects, Acoje in the Philippines (24,500 tonne per annum Ni) and Caldag in Turkey (20,400 tpa Ni), with initial production within two years. We expect to secure the full US$350 million project funding for Caldag by the end of this year, Mr Gregory said, with US$100 million already committed by Lead Arrangers, Societe Generale and Unicredit. Other banks are being approached concerning funding the remainder, Mr Gregory said. Caldags mine infrastructure is substantially complete, engineering design work is 76% complete, forestry permitting is awaited, and US$78 million has been spent to date on mine development and ordering long lead items. The US$498 million Acoje mine on the island of Luzon and where a Definitive Feasibility Study is due to be completed in 2011, will be the next cab off the rank. Pre-prefeasibility studies have indicated a low cash cost operation of around US$3.35 per pound of nickel (including refining charge). Acoje has commenced substantial heap leach trials on site. Mr Gregory said ENK would have just under US$10 million post merger and overall will have improved access to development capital, a larger balance sheet and greater share liquidity to help drive growth opportunities in a disciplined manner. The strong merger vote in Perth today means Rusina shareholders will accept one new European Nickel share for every five Rusina shares held (post a one for four consolidation in ENK). ENK will re-enter the ASX later this month where its CDIs can be traded. ENKs strength will be the Companys proprietary proven nickel laterite heap leach technology, a production pathway offering lower capex, operating costs and enhanced environmental aspects compared to more conventional laterite processing methods. Global nickel demand rising Mr Gregory said that while 49% of world nickel production was currently from nickel sulphides, global nickel sources in the future will be predominantly found in laterites. Current global annual consumption is around 1.25 million tonnes of nickel but this is expected to rise by 12% over calendar 2010 and build to around 1.7 Mtpa by 2015 - meaning nickel supply will struggle to keep up with demand, Mr Gregory said. Within the hydrometallurgical process route, where only major operators have been able to afford to develop conventional nickel laterite mining and processing routes, ENK has evolved a niche low-cost heap leaching system that has proven itself over three years of continuous testing, including joint technology development with BHP Billiton. Mr Gregory said. The trials have clearly yielded capex per pound outcomes of around US$6.00 compared to US$20-30 for conventional processing, delivering ENK a first mover advantage in delivering competitive product into this tightening world supply environment.
