Ecometals Signs Drill Contract for 2000 m Commencing late September
DNPM Transfers 11 Concessions to Ecometals Ferro do Amapa Ltda.
Fugro Completes 28,100 line km Magnetic/Radiometric Survey

TORONTO, Sept. 2 /CNW/ - Ecometals Limited (TSX-V:EML), (the "Company") is pleased to announce that significant progress has been achieved over the last 4 months in Brazil and the Company is now ready to commence drilling on its key Matapi iron property.

On August 29, 2008, the DNPM approved the transfers of 11 concession titles comprising 69,123.52 hectares to the Company's new joint venture subsidiary, Ecometals Ferro do Amapa Ltda which were previously held by Alto Tocantins. Fran Scola, Chief Executive Officer of Ecometals added, "With the DNPM's approval in hand, the Company now holds secure title over its iron concessions and can aggressively explore the numerous iron targets defined within the concession area by the airborne magnetic survey and previous exploration programs undertake by the Company."

The Company intends to sign a diamond drilling contract with Greiphil Minas Ltda. to undertake a 2000 m program designed to test several zones of outcropping iron mineralization and high priority magnetic anomalies. The program is expected to start in late September and will comprise 15-20 short angled holes. The Matapi iron prospects are located 90 km north-northwest of the capital city of Macapa in the State of Amapa. The logistics in the Matapi area are excellent with close access to the State paved highway and railroad which both terminate at the Port of Santana. An adequate supply of power and water are readily available in the Matapi concession area.

Ecometals, through Fugro Airborne Surveys, over the past three months, has completed 28,100 line km of airborne magnetics and over the Company's twenty one iron ore and manganese concession areas in the State of Amapa. The survey commenced production on June 12th and was completed on August 26th. Final products will be available by late September and will be used to refine the drilling program. The Airborne Survey will be complimented by the company's own ground magnetic survey covering iron mineralization intermittently exposed at the Matapi iron prospect and its extension to the northwest on the Greiphil concessions. The ground magnetic survey covers 15 km2 and was completed late August. Ecometals reported approximately $9.4 million of cash and cash equivalents as of June 30, 2008, which management believes is sufficient to execute its current exploration programme in Brazil.

Ecometals believes the Amapa State has substantial iron ore potential and has entered into discussions with four private companies and one public company that control concessions in the State of Amapa which host iron mineralization. Preliminary in-house geophysical interpretations were completed for the five areas of interest.