PMCI Platinum Min

RNS Number:3464K
Platinum Mining Corp of India PLC
11 October 2006



                    PLATINUM MINING CORPORATION OF INDIA PLC


               UPDATE ON ARRANGEMENTS WITH JOINT VENTURE PARTNER


11 October 2006



The Board of Platinum Mining Corporation of India PLC ("PMCI") announces that it
is in negotiations with its joint venture partner, Ferro Alloys Corporation
Limited ("FACOR"), with a view to agreeing the terms of a Raising Agreement and
a Long-Term Purchase Agreement (together, the "New Contracts") to replace the
Operating Agreement between FACOR and PMCI's 70%-owned subsidiary Boula Platinum
Mining Private Limited ("BPM") dated 5 February 2005 and summarised in PMCI's
AIM admission document dated 12 April 2005 (the "Operating Agreement").



The negotiation of the New Contracts follows the current Board of PMCI having
been notified recently of an agreement between FACOR and BPM dated 9 August 2005
(the "Termination Agreement") purporting to terminate the Operating Agreement.
Notwithstanding some doubt as to the validity of the Termination Agreement, the
Board of PMCI determined that it would be in PMCI's interests to negotiate and
enter into the New Contracts which, like the Operating Agreement, are intended
to cover the period between the commencement of exploration, mining and
processing of ore at FACOR's Boula mine and the date on which FACOR's mining
lease is transferred to BPM pursuant to the Joint Venture Agreement referred to
below.  Following the signature of the Termination Agreement, FACOR and BPM
agreed in principle to enter into replacement agreements and such commitment was
repeated at a meeting on 1 September 2006.



There can be no assurance that the New Contracts will be agreed and, in any
event during the current offer period, they can only be entered into by PMCI
following the approval of the Panel on Takeovers and Mergers pursuant to Rule 21
of the Takeover Code.



The Board of PMCI notes that the Joint Venture Agreement dated 5 February 2005
between PMCI, FACOR and BPM, being the primary agreement setting out the terms
of PMCI's joint venture with FACOR relating to the Boula mine, remains in full
force and effect.  The Board also stresses that the circumstances in which the
Operating Agreement would have, and the New Contracts would, become of
commercial and operational significance, namely the period between the
commencement of exploration, mining and processing of ore at the Boula mine and
the date on which FACOR's mining lease is transferred to BPM, have not yet
arisen.



Enquires to:

Malcolm Groat
Platinum Mining Corporation of India PLC
Telephone: 01202 606010

Paul Dudley/ Peter Jackson
W.H. Ireland Limited
Telephone: 020 7220 1666


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