Vanadium Production Reduced Due to Falling Demand

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FOR IMMEDIATE RELEASE

VANADIUM PRODUCTION REDUCED DUE TO FALLING DEMAND

DANBURY, Connecticut, January 21, 2009, — Because of the reduced demand for vanadium products, Strategic Minerals Corporation temporarily shut down vanadium operations at its Hot Springs, Arkansas and Brits, South Africa plants in December 2008. When production resumes during the first quarter of 2009, the company expects to operate the two facilities at levels that will maintain the inventories needed to supply customer needs.

During the shutdown, Strategic Minerals has sufficient inventories to meet all customer requirements, the company said. Strategic Minerals is part of Evraz Group, a major mining and steel producer headquartered in Moscow.

The plants in Arkansas and South Africa were shut down during most of December 2008 and January 2009 after the demand for vanadium products used by the steel industry dropped significantly. The company plans to resume operations at Hot Springs in late January and at Brits in March.

"The sharp declines in the automotive and construction industries have drastically reduced the demand for steel, especially grades that use vanadium as a steel strengthener," said Hein Enslin, President of Strategic Minerals Corporation. "As a result, like most of the vanadium industry, we are reducing our production and adjusting our inventories to the levels needed by the marketplace."

Strategic Minerals produces a complete line of vanadium products, including vanadium pentoxide (V₂O₅), ferrovanadium, Nitrovan^® vanadium, vanadium-aluminum, and specialty vanadium alloys and chemicals used by the steel, titanium, and chemical industries.

January 21, 2009

For more information, contact

John Crane
telephone: (212)302-3344
email: John.Crane@stratcor.com

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