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Amazon Mining

TICKER: TSX.V:AMZ

DESCRIPTION: Amazon Mining is a mineral exploration and development company founded by Brazilians in 2005. The company is focused on the development of Cerrado Verde project. Cerrado Verde is a source of potash-rich rock from which Amazon plans to produce a slow-release, non-chloride, multi-nutrient fertilizer product. Amazon Mining is a UK public company with shares listed on the TSX Venture Exchange since November 2007.

Read about Amazon's Amazing Turnaround in the National Post (3/10/10)

Watch video of Amazon's Cerrado Verde

WEBSITE: http://www.amazonplc.com

The information below is based on the most recent information we have received from analysts and the companies participating in The Gold Report. We encourage you to visit the company's web site for updates.

"Today Amazon announces an initial resource estimate of around 100 million tons averaging about 10% K2O. Big hairy deal! It's like. . .one look and you know whatever the reserve numbers the analysts were using, it was multiples of that! In the Amazon notification, they mention the same as in their announcement, they write, 'The Funchal Norte Target represents only a small portion of the geological potential of the Cerrado Verde project. Coffey Mining used satellite imagery technology to estimate the exploration potential inside Amazon claims of approximately 15 billion tons of glauconite mineralization.' It's enormous!

In the meantime, expect to hear more about Amazon's gold project as we get closer to summer and in the background folks, they've got a vanadium project that would rate as probably one of the best in the world. . .except Brazil is a little bit behind as far as their uranium policies. With a tight shareholding of only 30 million shares outstanding, this is an incredibly leveraged situation, should the thermal potash economics work out, as many in Brazil hope and wish for.

One thing they are definitely lacking is coverage as we are one of the very few writers or other analysts that cover this story. That's going to change shortly as tours are being put together for several analysts over the coming weeks and we are so looking forward to seeing what they write."
- David Pescod, Late Edition (03/09/10)

"AMZ is a mineral exploration and development company founded by Brazilians in 2005. The company is focused on the development of its Cerrado Verde project. Cerrado Verde is the source of a potash-rich rock from which Amazon plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product.

One in three workers in Brazil is employed in agriculture. Brazil has the world's 10th largest GDP, 24% of which comes from agriculture—yet Brazil only produces 10% of its current potash needs. Brazilian soils are generally poor in potash. Their leading exports—sugar cane, soy beans, coffee and corn—all require potash-rich environments. The Brazilian government would love to see potash produced locally, so the Cerrado Verde project is being fast-tracked at the highest levels of government.

Brazil is a country that wants and needs potash—Amazon is definitely going to attract attention and capital."
- Rick Mills, Ahead Of The Herd (02/15/10)

TER: Are you following any small-cap companies that represent some interesting investment options in these sectors—alternative energy, natural gas and agribusiness?

CP: In agriculture, I have an investment in Amazon Mining Holding Plc. For anyone concerned about the rainforest, Amazon's property is nowhere near the Amazon jungle. They are developing a potash fertilizer resource in Brazil, one of the world's leading producers of all kinds of crops—soybeans, corn, wheat, coffee, oranges, sugar cane. Despite its reliance on agriculture, Brazil imports more than 90% of its domestic fertilizer needs from places such as Russia and Canada. This means high transportations costs. . .this hurts farmers, increases food costs and is bad for the country. It's not difficult to see why all of the players in the Brazilian agricultural space are intensely focused on securing a domestic source of production

. . .You have this tiny company, $60 million market cap, that has the opportunity to significantly improve the economics of one of the world's major agricultural regions. It'll take a couple of years to get into production and there will be many of the issues associated with building a new mine but they have a very talented, driven management team that is focused on making this project work. Equally important they have the support and backing of domestic industry, politicians and farmers. Management has kept the share structure small and they have kept a tight lid on costs which saved them during last year's financial crisis. They also have bought a significant amount of stock for themselves in the open market, which I like to see.
- The Energy Report Interview with Chris Potter (02/11/10)

TER: Is Saskatchewan's potash dominance threatened by Amazon Mining Holding Plc (TSX-V:AMZ), which is drilling on a big potash play at their Cerrado Verde project in Brazil?

TM: Not at all. More power to them. In my lifetime the population of this planet has doubled, growing from 3 billion to more than 6 billion. Demand growth for potash will continue. We're just realizing the shortages in the market now, and because it takes a long time to bring these things to production we'll see supplies tighten up even further.

The Brazilian agriculture industry, if it isn't already the world's largest consumers of potash, is on the verge. Good on them. Amazon is doing very well and has a very large resource. I hope it will be easy for them to mine. The local supply will take out all of the transportation costs. The potash content is lower (11%) than what we mine in Saskatchewan. Typically, ours runs from 20% to 25%. Theirs uses different processing mechanisms and has a different chemical structure. But it's all potash and more potash production is a good thing.
- The Energy Report Interview with Tom MacNeill (01/28/10)

"One of the most intriguing stories we find is still Amazon Mining. Having been to Brazil, seeing first-hand how strong that economy is and I suspect it's going to get a lot stronger down the road, and seeing first-hand the Brazilian sense of getting things done. The Brazilians didn't like that they had to import so much oil so they made a go out of ethanol decades before it had been heard of in North America.
We suspect down the road, Amazon and their potential thermal potash play might seal the same fate and sometime this summer when they get to work on their Madeira Gold project, we suspect it also, is going to attract a lot of attention."
- David Pescod, Late Edition (01/26/10)

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