GSS Gossan Resources Limited

Gossan Resources Limited (TSX VENTURE:GSS)(FRANKFURT:GSR)(Frankfurt/Freiverkehr
& Xetra WKN:904435) reports Process Research ORTECH (PRO) has conducted an
independent Green House Gas ("GHG") Emission Study of the Gossan-Zuliani Process
for primary magnesium production. A dramatic reduction in carbon emissions is
achieved by the high raw material utilization efficiency of the production
process and the use of hydro-electricity, natural gas and high-purity dolomite.
The study concludes that midsize car emissions could be reduced by almost 7%
over the car's life expectancy (200,000 km) by lightweighting using magnesium
produced by the Zuliani Process and that this technology is a new breakthrough
magnesium production process. The Zuliani Process is a cost saving magnesium
extraction technology being developed by Gossan which has been successfully
demonstrated by thermodynamic modeling and bench scale testing. Subject to
confirmation of the process on a commercial scale, the direct cost of magnesium
ingot produced with the Zuliani Process is expected to be about 25-30% less than
the direct cost of Chinese magnesium ingot landed in western markets. 


The environmental Life Cycle Analysis (LCA) for Zuliani Process magnesium, as
reported in the PRO Study is based upon the substitution of cast iron, steel and
aluminum in midsized cars with magnesium at levels proposed in a comprehensive
report by the United States Automotive Materials Partnership (USAMP). Based on
the high efficiency of the Zuliani Process and using hydro-electricity and
natural gas as energy inputs, Gossan magnesium ingot produced using the Zuliani
Process has a Global Warming Potential (GWP - reported in kg CO2 per kg Mg) of
only 9.1. The GWP achieved through the Zuliani Process is 78% lower than the GWP
for magnesium produced by the Pidgeon Process in China (GWP 43.3) and 28% lower
than the average GWP for aluminum (GWP 12.7). The improvement of the GWP for
magnesium production using the Zuliani Process has significant positive
environmental implications.


The LCA for auto parts made with Gossan magnesium produced by the clean Zuliani
Process shows that the cradle to grave break-even for GHG saved from the reduced
vehicle weight is just over 69,500 km which would make magnesium the most
environmentally attractive weight-saving material. At a vehicle life expectancy
of 200,000 km, greenhouse gases from vehicles could be reduced by almost 7% and
fuel efficiency would improve by an even greater amount.


A copy of PRO's report entitled "Lowering of CO2 Emission for Magnesium
Production by Gossan-Zuliani Process" may be found at:
www.gossan.ca/projects/pdf/MgGHGReport.pdf


From an environmental and performance perspective, ultra-light magnesium
components have the potential to significantly reduce vehicle weight which in
turn has important implications for reducing emissions and improving fuel
efficiency of combustion engines and increasing the range of electric vehicles.


The LCA analysis is based on the USAMP study which determined that a total of
159 kg of magnesium could be incorporated into the average North American car
which represents an increase of 154 kg over today's average of 5 kg. USAMP
estimated that a total weight savings of 227 kg could be realized by direct
substitution weight savings of about 132 kg from replacing 226 kg of cast iron
and steel and 59 kg of aluminum with 154 kg of magnesium. In addition, there
will be secondary weight savings expected to be a further 95 kg as a result of
vehicle redesign efficiencies using magnesium. The analysis also assumes SF6
free, near net shape parts manufacturing and utilizes a model developed by
D'Errico, Fare and Garces for determining a LCA when using magnesium alloy parts
in transportation. 


Magnesium alloys exhibit the highest strength to weight and stiffness to weight
ratios in many structural applications and typically provide weight savings of
between approx. 50-75% over conventional steel, approx. 40-60% over high
strength "light steel" and approx. 20-35% over aluminum. In addition magnesium
alloys also demonstrate excellent castability, fabrication characteristics and
dent resistance.


Dr. R. Sridhar, Ph.D., and Dr. V. I. Lakshmanan, Ph.D., of Process Research
ORTECH (PRO) of Mississauga, Ontario, supervised the study, "Lowering of CO2
Emission for Magnesium Production by Gossan-Zuliani Process" and have reviewed
the technical contents of this news release.


Gossan is developing the Zuliani Process for magnesium production and holds an
option on the world-wide rights to the technology. In order to prove out the
technology prior to commercialization, Gossan is undertaking a four stage
evaluation process. Initially independent FactSage thermodynamic modeling was
successfully used to verify the process fundamentals. The second stage which
involved three phases of bench scale testing was successfully conducted at PRO.
The third stage which is now being planned and sourced will involve large-scale
batch and process testing. Thereafter a fourth stage of pilot plant testing will
be required to demonstrate commercial viability. Gossan may seek a joint venture
partner to assist in the pilot plant testing and subsequent commercialization of
the process. 


Based on the extensive bench scale trials and thermodynamic modeling completed
to date and the dominance of Chinese Pidgeon Process magnesium (about 80% of
world supply utilizing technology originally developed in the 1940's), Gossan
expects commercialization of the Zuliani Process will provide the Company with a
significant operating cost advantage in the North American and European
magnesium markets. 


Gossan holds a very-large, high-purity, at surface, magnesium-bearing dolomite
deposit with a NI 43-101 Measured Resource that alone would be capable of
sustaining a very substantial production facility of 80,000 tonnes of magnesium
per year for about 30 years. Manitoba has abundant low-cost hydro-electricity. 


On April 25-26, 2012, Dr. Zuliani will be delivering a paper, "Making Magnesium
A More Cost & Environmentally Competitive Lightweighting Option" at the Global
Automotive Lightweight Materials 2012 Conference in London, UK. Interested
parties are invited to meet with Gossan management and Dr. Zuliani at Conference
Booth 17. www.global-automotive-lightweight-materials.com 


Gossan Resources Limited is engaged in mineral exploration and development in
Manitoba and northwestern Ontario. It has a well-diversified portfolio of
properties hosting gold, platinum group and base metals, as well as the
specialty and minor metals, vanadium, titanium, tantalum, lithium and chromium.
The Company also has a large deposit of magnesium-rich dolomite, the world-wide
rights to the Zuliani high-efficiency magnesium production process, and a silica
frac sand deposit. Gossan trades on the TSX Venture and the
Frankfurt/Freiverkehr & Xetra Exchanges and has 33,140,400 common shares
outstanding.


For further information, please bookmark www.gossan.ca.

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