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Centamin Egypt Limited: Centamin Egypt: Award of Underground Mining Contract and Mobilisation

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  Published in Business and Finance on Friday, April 3rd 2009 at 6:11 GMT, Last Modified on 2009-04-03 06:12:12 by Market Wire
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TORONTO, ONTARIO--(Marketwire - April 3, 2009) - Centamin Egypt Limited ("Centamin" or "the Company")(TSX:CEE)(ASX:CNT)(AIM:CEY) today announces it has issued a Letter of Intent to Barminco for the immediate mobilisation of personnel and equipment, and subsequent commencement of underground mining activities at the Sukari Gold Project in Egypt.

During the fourth calendar quarter of 2008, underground mining contractors were invited to attend site meetings and a detailed tender process was conducted. The subsequent award to Barminco, one of Australia's leading underground contractors, will see the immediate mobilisation of personnel and equipment to Sukari targeting a start date of 01 July 2009 for the underground decline. Site works have begun at Sukari for the commencement of portal construction.

An initial underground mining rate of 500,000 tonnes per annum at a grade between 5-10g/t Au is being targeted thus bringing higher grade ore feed into production earlier than otherwise would have been scheduled through surface mining at circa 2g/t. Within the initial 12 months of operation, the 6mx6.5m decline will progress 1,200m and begin to develop in ore roughly 200m below the valley floor. Initial ore from development work will begin at this stage with full production from the underground being achieved approximately 18 months after commencement of the decline.

Centamin is a mineral exploration and development company that has been actively exploring in Egypt since 1995. Centamin's principal asset is the Sukari Gold Project, located in the Eastern Desert of Egypt. The Sukari Gold Project is at an advanced stage of development, with construction having commenced in the second quarter of 2007.

The Sukari Gold Project will be Egypt's first modern gold mine and has a current resource of 9.39Moz Measured and Indicated, and 3.5Moz Inferred. Completion of mine development includes a processing plant with initial throughput capacity of 4M tonnes per annum. Progress at the Sukari Gold Project has continued in line with expectations and the Company continues to expect first production in the second quarter of 2009.

For Centamin Egypt Limited

Josef El-Raghy, Managing Director/CEO

03 April 2009