African Minerals Limited

2009 INTERIM RESULTS 

Progress well on track at Tonkolili – the world’s third largest reported Magnetite Iron Ore Resource  

African Minerals Limited (AIM:AMI), the mineral exploration and development company with significant interests in Sierra Leone, West Africa, is pleased to announce its interim financial results for the six months ended 30 June 2009, including a review of the Company’s operations.

HIGHLIGHTS

· Tonkolili Iron Ore Project 

 
– Total JORC compliant Mineral Resource at Tonkolili increased to 5.1 Billion tonnes (“Bt”) 

 
– 3.1 Bt in the Indicated category with an average grade of 30.7% Total Iron 

 
– 1.9 Bt in the Inferred category with an average grade of 28.9% Total Iron

 
– Metallurgical test work indicates that the iron ore at Tonkolili is upgradeable to a high quality concentrate grading in excess of 68% Fe at a mass recovery of over 30%, with impurities at levels less than 4.5% SiO2, 0.6% Al2O3, and 0.01% P

 
– Geophysics and reconnaissance drilling over a strike length of 20km at Kasafoni indicates the potential to increase the iron ore magnetite mineral resource to in the order of 10 Bt, as supported by SRK Consulting (UK) Limited 

 
– Exploration confirms potential for 800 million tonnes of hematite mineralisation on Numbara, Simbili and Marampon deposits alone, as supported by SRK Consulting (UK) Limited 

 · Key Infrastructure Projects
 
– The Parliament of Sierra Leone has formally ratified the lease over railway and port infrastructure 

 
– Tagrin Point, located adjacent to one of the world’s largest natural harbours, will become a world class iron ore transport, ore handling and shiploading facility for Sierra Leone and the West African sub-region

 
– Studies to date on the heavy haul railway system linking Tonkolili to Tagrin Point indicate that the future construction and commissioning of the system is unlikely to provide any material engineering obstacles

 
– Design and planning studies to complete the refurbishment and construction of the Pepel Port and Pepel – Marampa railway system are well underway and support the potential to ship hematite product and create early cashflow  

 
· Key Technical Appointments
 
– Alan Watling joined the Board on 1 February 2009 as Chief Executive Officer, bringing a wealth of project management and engineering experience to the Company. Alan was previously Chief Operating Officer of Fortescue Metals Group (“FMG”) and responsible for the mine development and mine production at FMG’s operations at the Cloudbreak Iron Ore mine in Western Australia  

– John Blanning joined the Company on 16 March 2009 as Vice President – Mine Engineering and has over 23 years mining experience, having most recently been Head of Mining at FMG

– Steve Allard joined the Company on 23 March 2009 as Vice President – Infrastructure. Prior to joining AML, Steve was most recently Head of Port, FMG, where he was integral to the successful transition from the design and construction phase into operations

 

· Marampa Iron Ore Project
 
– Cape Lambert Iron Ore Ltd (“CLIO”) increased its stake in Marampa to 35%

– AML’s interest in CLIO increased to 11.6%

– Metallurgical testwork results for a bulk, composite sample of historical hematite tailings located at the Marampa Project demonstrate a hematite concentrate can be produced from the tailings grading 65% iron and 3.9% silica for a mass and iron recovery of 46% and 91.6% respectively

 
· Finance 
 
– £63.8 million before expenses raised in July 2009 by way of a cash placing with new and existing institutional investors

– Strong endorsement of iron ore assets and new management team by key investors during difficult economic conditions 

– Cash at bank as at 30 June 2009 was US$9.6 million

Frank Timis, Executive Chairman commented:

“We are now well placed and have the funding, access to infrastructure and technical personnel to progress the Tonkolili project to the construction phase and more fully realise the potential of one of the largest iron ore magnetite projects globally. We believe that the Company will benefit significantly as the project is de-risked further by the completion of a Definitive Feasibility Study at Tonkolili.”

“We expect the results from the current hematite testwork, due by year end, will demonstrate that a saleable product can be produced at Tonkolili which could potentially see the Company move into initial production over the next 12 months, realising early cashflow.”

“We thank the Government of Sierra Leone for its continued support of our considerable endeavours, providing us with the ability to expedite mine and infrastructure development plans.”