Pluton Resources Limited (ASX:PLV) Signs Memorandum Of Understanding With Major Japanese Trading Company

Melbourne, Oct 20, 2010 AEST (ABN Newswire) - Pluton Resources Limited (ASX:PLV) is pleased to announce that it has signed a non-binding Memorandum of Understanding ('MOU') with a major Japanese trading company ('JTC').

The JTC has requested that their name and the terms of the MOU be held in confidence at this time, and Pluton has agreed with this request.

The MOU sets out the process for the JTC to become a significant minority partner in the Irvine Island Iron Ore Project.

Key to any financial transaction is Pluton's ability to show that it will be able to meet the required technical specifications and cost requirements for the commercial production of iron concentrate for use at specific steel mills in Japan, and the completion of the Pre-feasibility Study. The Pre-feasibility Study is due for completion by the end of March 2011.

Pluton and the JTC have agreed to use all reasonable endeavours to finalise an agreement within 30 days of the completion of the Irvine Island Pre-feasibility Study to a standard determined by the JTC, and the commencement of a detailed feasibility study.

Pluton will be working with the JTC over the coming months to meet their requirements.

If Pluton meets the JTC's requirements, and Pluton and the JTC agree on terms, the parties would likely enter into:

- A Sale and Purchase Agreement

- A Joint Venture Agreement, and

- An Off-take Agreement

Said Pluton Managing Director, Mr. Tony Schoer "we have now completed a process looking for a strategic partner who has the financial capacity, the need for our style of product, and the technical background to assist us in bringing the Irvine project to development."

"The potential partner we have selected meets all of our requirements. It is now up to us to demonstrate to the JTC that we can produce the concentrate they require. To that end we will soon be conducting tests on 1.5 tonnes of material. We have their required specifications and are confident that we can produce this product".

"It also makes sense for both parties to wait to negotiate based on the Pre-feasibility Study results. This will give us a true indication of value and give us a much better chance of a win-win transaction".

Contact

Tony Schoer Managing Director Pluton Resources Limited Tel: +61-411-232-711 Email: tschoer@plutonresources.com http://www.plutonresources.com