Denham Capital to Invest in Trans-Tasman Resources

Denham Capital to Invest in Trans-Tasman Resources to Develop Off-Shore Iron Ore Assets in New Zealand

WELLINGTON , NEW ZEALAND and BOSTON , U.S.A. –April 12, 2010 – Trans-Tasman Resources Limited (“TTR”) and Denham Capital Management (“Denham Capital”) announced today that Denham Capital has made an equity investment in TTR.

TTR, with offices in Wellington and Perth , Australia , was established in 2007 to explore and develop iron sands deposits off the North Island of New Zealand. TTR holds a prospecting permit granting exclusive mineral rights over 6,319 km2 of seabed in two offshore areas. TTR's initial prospecting work, backed by a mineral resource model derived from a magnetic survey and over 200 surface and core samples, suggests that its tenements could contain a very large and very low cost iron ore resource.

Early technical and economic models suggest that the envisaged mining operation would be very low cost and much less capital-intensive than comparable land-based mining operations. TTR is considering an offshore dredge mining operation combined with an offshore beneficiation plant located on a fixed rig. Iron sands would be dredged from the seabed, processed in the beneficiation plant, then slurried to a capesize vessel for shipment to Asia , or shuttled to a dedicated local onshore steel mill. TTR is committed to conducting all its activities in a safe and environmentally sustainable manner and to engaging proactively with local communities and authorities with respect to all relevant economic, environmental and social issues.

“TTR is in an outstanding position to help meet the expected global shortage of iron ore,” said Bert Koth, director and head of metals and mining at Denham Capital. “Its operating and capital costs will be a fraction of those for land-based mining and its transport logistics suffer none of the constraints and costs faced by many, if not most, other iron ore projects. Its management team is extremely well-qualified and has a rare combination of steel and iron ore industry experience. This is an exciting opportunity to make a valuable contribution to the development of New Zealand ’s natural resources asset base.”

“The partnership with Denham Capital will enable us to fast track the development of the project without the costs and distractions associated with an early IPO,” said Paul Berend, Managing Director of TTR. “The initial investment of capital by Denham Capital will enable us to prove the extraordinary potential of the mineral resource and comply with Joint Ore Reserves Committee (JORC) reporting standards. This will require additional exploration work, in particular, extensive off shore drilling and beneficiation test work.”

“The mining sector is an important investment area for Denham Capital and one where our investment professionals have significant industry knowledge and operational expertise,” said Louis van Pletsen, partner and head of Denham Capital’s London Office. “Denham Capital explores metals and mining opportunities globally and at different stages of development. We expect alternative iron ore assets to see increasing demand and valuations due to rising consumption of iron ore in China and declining production of high quality ore from traditional mining regions.”

ENDS

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