Monday, June 29, 2009

NTC to Mothball Tungsten Mine due to falling prices, and increased stockpiles

North American Tungsten Corporation Ltd. (the "Company") announces that it will temporarily suspend production at its CanTung tungsten mine in the Northwest Territories, effective October 15, 2009 due to increased product inventory and declining tungsten prices. The mine will be placed on a care and maintenance program that will enable a timely and cost effective return to production when market conditions improve.

The Company will continue to sell product from inventory and will have sufficient material to satisfy all contractual sales obligations. The Company further plans to continue spot sales of product through early 2010. The Company intends to meet all its financial obligations while conserving cash for future growth. In addition, the Company is developing strategies for both short and long term funding.

"This has been a difficult decision as we have seen our tungsten team evolve to be among the best in the world. I am very proud of our team." said Stephen Leahy, Chairman and CEO. He further added "I expect that a tungsten supply shortfall will develop as the world economy improves. We fully intend to pursue plans to return the mine to full operations after markets have significantly firmed."

The Company will continue with its planned summer exploration drilling program at both the CanTung Mine and the MacTung Deposit to expand known resources. The majority of funds will be spent on the MacTung Deposit.

Permitting and development work will continue on the MacTung project.


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