Tata Steel Global Minerals Holdings Pte Limited, Singapore (“Tata Steel”), a wholly owned indirect subsidiary of Tata Steel Limited, announced today that it has entered into a binding agreement with New Millennium Capital Corporation, Canada (“NML”) whereby Tata Steel will become a strategic investor in NML. Tata Steel will acquire 19.9% of the.. common shares of the expanded capital base of NML for a consideration of USD 22.6 million (Rs 106 crore) and will acquire, at its option, an 80% equity interest in NML’s Direct Shipping Ore project (“DSO Project”) located in the Province of Newfoundland and Labrador (“NL”) and the Province of Quebec (“QC”). The agreement provides exclusivity to Tata Steel with respect to both the DSO Project and the LabMag taconite iron ore property located in NL, which is 80% owned by NML and 20% owned by the Naskapi Nation of Kawawachikamach.

The net proceeds from the private placement will be used by NML primarily to develop the DSO Project through a definitive feasibility study to be completed in the second quarter of 2009.

Tata Steel will have exclusivity on the DSO Project through to the completion of the feasibility study. Based on historical estimates, the DSO Project contains in excess of 100 million tonnes of direct shipping quality ore. After the completion of the feasibility study Tata Steel will have an option for a 180 day period to acquire an 80% equity interest in the joint venture to be set up to develop and operate the DSO Project and will also have a 100% offtake right on the DSO Project’s iron ore production for the life of the mining operation. Subject to completion of a positive feasibility study, regulatory approvals and project financing, NML expects to produce 4 million tonnes per annum of iron ore products from the DSO Project commencing in 2010.

Tata Steel will also have exclusivity to negotiate and settle a proposed transaction in respect of the LabMag project until June 30, 2009. The LabMag deposit contains 3.5 billion tonnes of proven and probable mineral reserves. These reserves are contained in 4.6 billion tonnes of measured and indicated resources and 1.2 billion tonnes of inferred resources. The parties intend to work together to find an economically viable solution to advance this project.

As per the Agreement, upon completion of the placement Tata Steel is entitled to two nominees on the Board of NML. Tata Steel is also entitled to a right of first refusal in future placement of equity securities conducted by NML and a pre-emptive right in connection with other offerings of equity securities.

B Muthuraman, Managing Director, Tata Steel Limited, said: “Tata Steel Group is pleased to have signed this binding agreement with New Millennium, which gives Tata Steel Group the opportunity to work closely with New Millennium on the DSO and LabMag properties to develop these as a world-class project. Subject to the establishment of their economic viability, these projects may prove to be a source for part of the raw materials requirements of Tata Steel Group. In view of its geographical proximity, Canada is a favourable location to source raw materials for Tata Steel Group’s European operations.”

Robert Martin, New Millennium President and CEO, said: “The agreement with Tata Steel, the world’s sixth largest steel producer, is a decisive corporate event for New Millennium. It is also a definitive recognition that New Millennium offers significant sources of supply of high quality iron ore products for the global steel industry from a country rated highly for mining investment. This agreement culminates a lengthy and thorough search for a strong strategic investor. Tata Steel is an ideal partner for New Millennium and offers our shareholders the most efficient way to realise value in the near term from the Company’s DSO Project and in the longer term from its LabMag Project.”

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