American Manganese Inc.: Strong Electrolytic Manganese Market Forecast by CPM Group

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/06/11 -- Mr. Larry Reaugh, President and Chief Executive Officer of American Manganese Inc. (TSX VENTURE: AMY)(PINKSHEETS: AMYZF)(FRANKFURT: 2AM) ('American Manganese' or the 'Company'), is pleased to announce that CPM Group has delivered an in-depth electrolytic manganese market study for the Company's Artillery Peak Manganese Project located in Mojave County, Arizona. This market study represents a major component of the previously announced preliminary feasibility study that is currently underway and is scheduled for completion mid - first quarter of 2012.

A few of the most salient report highlights include:

--  The worldwide demand for EMM is forecast to grow from about 1.5 million
    tonnes today to about 2.8 million tonnes by 2021.
--  China's share of worldwide EMM demand is forecast to rise from 87% to
    89% over the 10 year forecast period.
--  China's share of EMM production is projected to fall from 98% currently
    to 89.4% in 2021. By 2018 it is likely that China's demand will exceed
    its supply capability, and China would then become a net importer of
    EMM.
--  Chinese industry consolidation/rationalization combined with the rising
    EMM production cost structure and depleting and degrading manganese
    resources, provides the basis for the level of price support required
    for building new EMM capacity outside of China.
--  'Over the next 10 years real electrolytic manganese metal prices are
    forecast to average $1.98 per pound, reaching an annual high of $2.40 in
    2021. This is nearly double the annual average price over the last 10
    years.'

Click here to view the Executive Summary of the report: http://amydata.com/data/reports/Electrolytic_Manganese_Metal_Outlook_2011_ExecutiveSummary.pdf

Quoting directly from the report: 'Between 2012 and 2021 real EMM prices are forecast to average nearly $2 per pound, which will support project development activities and provide incentive pricing for bringing new projects online to meet continued growth in demand.' Mr. Reaugh goes on to say, 'The depth and thoroughness of CPM's research establishes a solid benchmark for understanding the EMM market, and why the time for building the Artillery Peak Manganese Project has arrived.'

The current National Instrument 43-101-compliant resource estimate of the Artillery Peak manganese deposit includes an indicated resource of about 220.9 million tonnes grading 2.84 per cent manganese (13.83 billion pounds contained manganese), and an inferred resource of about 56.3 million tonnes grading 2.84 per cent manganese (3.53 billion pounds contained manganese). The preliminary assessment announced on August 9, 2010 showed that the conceptual project should be economically robust and could potentially become the world's lowest cost producer of electrolytic manganese metal.

The pilot plan work at Kemtco Research Inc. is nearing completion. 'This proof of concept' testing has confirmed viability of all stages of the conceptual process shown and described in earlier press releases.

About CPM Group (www.cpmgroup.com)

CPM Group is the world's premier commodities research and consulting company. The firm's primary focus is on precious, industrial, and specialty metals, in addition to undertaking research and analysis across all commodities markets. In the ferroalloy industry CPM Group has developed a top-rated expertise in molybdenum, vanadium, manganese and chromium, as well as other minor metals. CPM Group provides a suite of research and consulting services related to the financial management of commodities exposure, including fundamental market research and analysis, consulting and advisory services, commodities management and asset management services, and corporate finance advisory. Founded in 1986, CPM Group is known for its research and analysis of the metals markets, its overall economic analysis of commodities markets, and its expertise in financial engineering, using derivatives to structure optimized positions for commercial hedgers and institutional and high net worth individual investors.'

About Manganese

China controls electrolytic manganese production supplying and producing 98% of the world's needs (3 billion pounds per year).

There is no substitute for manganese in steel (total manganese market greater than 33 billion pounds per year, fourth largest traded metal).

Manganese is the most critical metal at risk to supply and restriction in the United States as there is no U.S. production. EMM's greatest uses are the upgrading of specialty steel (74%), and the manufacture of aluminum alloys (12%) and electronics (2%).

Electrolytic manganese dioxide (EMD) for the battery industry is expected to be the fastest-growing segment of the manganese market.

China has a 20% export duty on EMM and the U.S. has a 14% import duty.

The current world price for electrolytic manganese metal is about $1.45 per pound, while the U.S. price is about $1.84 per pound.

About American Manganese Inc:

American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming the lowest cost producer of electrolytic manganese from its Arizona Manganese Project.

This release has been reviewed by John W. Fisher, PEng, a qualified person pursuant to National Instrument 43-101.

On behalf of Management

AMERICAN MANGANESE INC.

Larry W. Reaugh, President and Chief Executive Officer

This news release may contain certain 'Forward-Looking Statements' within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX-Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts:

American Manganese Inc.

Larry W. Reaugh

President and Chief Executive Officer

604-531-9639

604-531-9634 (FAX)
www.americanmanganeseinc.com