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GGG: Greenland Discussions Progress

We refer to the current suspension of Greenland Minerals and Energy Limited (“GMEL” or “the Company”). The Australian Securities Exchange Limited (ASX) has requested the reinstatement of the Company’s securities after the lodgement of this announcement. On 1 August 2010 Greenland Minerals and Energy Ltd requested a trading halt following press articles in Greenland that did not reflect the Company’s understanding of its position regarding ongoing work programs on Kvanefjeld multi‐element project (EL 2010/2). The Company has since received a letter from the Minister for Industry and Mineral Resources. Main points in the correspondence received from the Minister for Industry and Mineral Resources: The letter confirmed that the existing zero tolerance policy for uranium mining was still in place and that no change to that policy had been decided. It further advised that more information regarding environmental, health and regulatory aspects of uranium mining are required before any changes to the policy was to be considered and that the government intends to investigate these areas further before making any policy decisions. The letter then confirmed that the Company’s exploration licence at Kuannersuit (EL 2010/2 or Kvanefjeld) is in good standing and that the Company can continue its exploration activities and feasibility studies aimed at understanding the features of the multi‐element deposit. Finally it affirmed that a decision to permit mining would be subject to the information generated in the Company’s detailed feasibility studies, with an emphasis on environmental and social impact assessments. Following receipt of the letter Company representatives met with the Bureau of Minerals and Petroleum (BMP) to further discuss the evaluation and assessment of the Kvanefjeld project. These discussions built positively upon the points outlined above from the Minister for Industry and Mineral Resources. The outcomes of the discussions between the Company and BMP are now being reviewed by the government. Given the short notice upon which the items have been presented for government discussion and the necessary considerations, the timetable for an outcome is yet to be determined. However, the Company anticipates further updates from the government in the coming weeks, and will update shareholders accordingly. Since entering a trading halt on August 1st, GMEL has maintained a dialogue with the ASX in regard to the suspension of its shares. In consideration of the uncertain timing for the finalisation of the government review, the ASX has now recommended that the Company resumes trading. GMEL would like to affirm that the Greenland government has made clear its support for ongoing work programs on the Kvanefjeld multi‐element project, and that the outcomes of the Company’s detailed feasibility studies will form the basis of a decision on whether to grant an exploitation permit.