New Millennium Capital Corp. Announces Binding Heads of Agreement With Tata Steel to Develop One of the World's Largest Undeveloped Magnetic Iron Ore Deposits (ccnm)

CALGARY, ALBERTA--(Marketwire - March 7, 2011) -

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New Millennium Capital Corp. (TSX VENTURE:NML) ("NML" or the "Corporation") announced today that it has signed a binding heads of agreement (the "Binding HOA") with Tata Steel Global Minerals Holdings Pte Ltd ("Tata Steel") to develop the LabMag and KéMag iron ore deposits, known collectively as the Taconite Project. The remainder of the Millennium Iron Range will be retained by NML.

Under the Binding HOA, Tata Steel shall participate in the development of a feasibility study of the Taconite Project (the "Feasibility Study") and contribute towards 64% of the costs related thereto. The parties would enter into a binding joint venture agreement upon the successful completion of the Feasibility Study and Tata Steel electing to develop one or both of the deposits. After formation of the joint venture, NML is expected to hold a 36% equity interest in the Taconite Project, including a 20% free carry equity interest. In addition, NML will have a 4% right of first refusal on future equity sales by Tata Steel to increase its equity interest to a maximum of 40%.

Tata Steel will arrange the required equity portion of the financing (excluding NML's optional equity interest) based on a maximum capital expenditure of up to $4.85 billion if both deposits are developed and up to $4.68 billion and up to $3.76 billion respectively, if only the KéMag or LabMag deposits are developed. Arranging debt financing for the project shall be the responsibility of Tata Steel. All dollar amounts in this news release are expressed in Canadian dollars unless otherwise specified.

A conference call to discuss the Binding HOA is scheduled for 11:00 a.m. ET on Monday, March 7, 2011. Details follow at the end of this news release.

Taconite Project – A Company Builder

"With the agreement we are announcing today, the Taconite Project becomes a company builder for New Millennium," said Robert A. Martin, President and Chief Executive Officer. "The binding heads of agreement with Tata Steel provides the framework to take the project through to development and ultimately to the production stage. This project has the potential to create substantial wealth for our shareholders and for Canadians. It will generate long-term jobs, taxes and infrastructure for the First Nations and other surrounding communities."

The Taconite Project consists of two world-class magnetite iron ore deposits on the emerging Millennium Iron Range, which stretches 210 kilometres from western Labrador through eastern Quebec. The LabMag deposit is located in the Labrador portion of the range and the KéMag deposit is located in the Quebec portion. Together, the two deposits hold over 9 billion tonnes of reserves and resources that will potentially produce 22 million tonnes per year of concentrate, with a potential mine life of over 100 years.

Based on the previously disclosed KéMag pre-feasibility study (see the Corporation's news release 0901 dated January 16, 2009), it is estimated that pre-tax cash flow from the Taconite Project will be in excess of US$1.1 billion per year at an assumed pellet price of US$90 per tonne. The current price for pellets is approximately US$200 per tonne.

Highlights of the Binding HOA

Under the Binding HOA:

• NML and Tata Steel will jointly oversee and supervise the preparation of the Feasibility Study for the Taconite Project. Tata Steel and NML will fund 64% and 36% respectively of the cost of the Feasibility Study, which is estimated at $ 50 million.
• The Feasibility Study will be compliant with the standards of disclosure of mineral projects as stated in National Instrument 43-101 and is expected to be completed within 21 months of its initiation. The Feasibility Study would serve as the basis to secure financing for the Taconite Project.
• Upon conclusion of the Feasibility Study, Tata Steel will have a maximum of four months to make an investment decision. A positive investment decision could involve the development of either one or both of the deposits. NML will transfer such deposit(s) along with the property and other related rights to such deposit(s) to the JVE (defined below). If Tata Steel elects to develop only one of the two deposits, NML will retain the property and related rights in respect of the remaining deposit.

The Binding HOA further provides that following a positive investment decision:

• Tata Steel will reimburse NML 64% of the estimated $30 million in expenses that were incurred by NML on the Taconite Project up to the execution of the Binding HOA. The $600,000 facilitation fee that Tata Steel has paid to NML in exchange for the Taconite Project exclusivity extension from December 31, 2010 to February 28, 2011, will be credited to the payment.
• Tata Steel and NML will form a joint venture enterprise ("JVE") to hold the Taconite Project, where Tata Steel and NML would hold shares in the ratio of 80% and 20% respectively, the latter being the free carry interest of NML.
• Tata Steel will arrange the required equity portion of the financing (excluding NML's optional equity interest) based on a maximum capital expenditure of up to $4.85 billion if both deposits are developed and up to $4.68 billion and up to $3.76 billion respectively, if only the KéMag or LabMag deposits are developed.
• Within 60 days of Tata Steel's positive investment decision, NML would also have an option to acquire up to an additional 16% paid equity, thereby bringing its total equity in the JVE from 20% to up to 36%. This additional 16% equity shall obligate NML to contribute proportionate equity funding to the JVE.
• Arranging debt financing for the project shall be the responsibility of Tata Steel.
• Should Tata Steel exercise its right to invite third-party investors into the project, NML will have the right of first refusal to acquire an additional 4% of paid equity, thereby increasing its ownership in the project to a maximum of 40%.
• The parties have an offtake right on the production in proportion to their ownership interest in the JVE.

Tata Steel – The Right Partner

"Tata Steel is a highly credible partner. They are among the top ten steel companies in the world, and they have the financial strength, operating expertise and motivation to carry this project through to production. NML could not have found a better partner," continued Mr. Martin.

"By virtue of this Binding HOA, Tata Steel commits its resources to actively participate in the Feasibility Study for the Taconite Project. A successful completion of the Feasibility Study would enable Tata Steel to consider a viable option for attaining self-sufficiency in iron ore for Tata Steel's operations in Europe," said Mr. H.M. Nerurkar, Managing Director of Tata Steel. "We are happy to strengthen our relationship with New Millennium by advancing the Taconite Project".

Board Approval