core sector communique

AFFERRO MINING INC.

Ntem Exploration Permit Provides a Significant New Target

Afferro Mining Inc. (“Afferro” or the “Company”), the exploration and development company focused on iron ore in Cameroon, is pleased to provide results for the reconnaissance drilling at the Ntem exploration permit, which is located 80km from the deep sea port under construction near Kribi. On the back of the encouraging initial drill results, the Company is planning a further drilling campaign and is commissioning an infrastructure scoping study.

Highlights:

• Targeted mineralisation remains open at depth, with potential additional strike extensions to the west of the deposit

• Mineralised intersections encountered in ~90% of reconnaissance drilling samples, including:

• 87m @ 37.0% Fe from 20m

• 18m @ 47.5% Fe from surface

• 125m @ 38.3% Fe from surface

• 51m @ 39.4% Fe from 26m

• 98m @ 38.3 % Fe from surface

• 64m @ 39.2% Fe from surface

• 38m @ 38.2% Fe from surface

• 62m @ 37.1% Fe from 48m

• Deposit consists of a series of magnetite Banded Iron Formation (“BIF”) zones

• Phase 2 drilling programme of approximately 4,750m is planned, to quantify an initial resource

• Infrastructure scoping study is being commissioned to examine the economics of road haulage to minimise capex and provide earlier cashflow

• Attractive location, only 80km from Kribi deep sea port, currently under construction by the Government of Cameroon

• Potential to use 216MW Kribi power station, due to be commissioned by AES-Sonel, the State power company, in 2013

Luis da Silva, Chief Executive Officer of Afferro, commented:

"The encouraging results at Ntem provide Afferro with a new greenfield exploration target of significant scale. Fe08, the first anomaly of a number of targets tested by reconnaissance drilling, remains open at depth, with western extensions. It is strategically well located, less than 80km from the rapidly developing Kribi deep sea port and 10km to the north of the proposed South Cameroon Rail Corridor, which was recently highlighted as a planned route in the draft National Railway Master Plan by the Government of Cameroon.

“The results support further exploration and the Company is planning a further drilling campaign with a view to quantifying an initial resource. We are also commissioning an infrastructure scoping study to explore the viability of road haulage and the potential to utilise electricity from the 216MW Kribi power station due to be commissioned in 2013 (timing confirmed by AES-Sonel in January 2012). This project may provide a scalable mining operation requiring a reduced capital investment.

“Exploration has not been limited to Ntem. Afferro has been running exploration programmes at each of its four Cameroonian exploration permits concurrently this year. Drilling results are expected imminently from the Ngoa target (Essong exploration permit), which lies adjacent to the Nkout iron ore project. Field work at the Akonolinga project has been completed and results of surface sampling and pitting are due by the end of this year, at which point an initial drilling programme can commence.”

Ntem Fe08 Anomaly

The Fe08 drilling target was interpreted as a magnetic anomaly by Southern Geoscience Consultants of Perth following an airborne geophysical survey conducted in Q1 2010. The first phase reconnaissance drilling campaign, comprising 3,200m of drilling over 34 holes (encountering mineralisation in 30 holes), and other field work was completed in Q2 2012.

The Fe08 mineralised envelope extends over one kilometre of strike containing multiple mineralised zones. Mineralisation intersected comprised a predominantly quartz magnetic banded iron stone. The magnetite BIFs are structurally deformed with associated amphibole meta-sedimentary country rock underlain by a strongly foliated granitoid gneiss basement. The mineralogy of the ore is dominated by magnetite and quartz.

The mineralised packages remain untested at depth, with additional strike extensions west of the defined exploration target area. Significant drill results are contained in Table 1 below.

Continuing Exploration and Development at Ntem

Afferro has commissioned a structural interpretation of the drilling data to increase the geological understanding and confirm continuity of the mineralised lenses. Further resource drilling to explore the potential depth extent of the mineralisation and extent of resource potential is expected once this interpretation is complete.

An infrastructure scoping study is being commissioned to consider technical and economically feasible routes to market including utilisation of the bulk cargo wharfs being developed at the Kribi deep sea port prior to any development of the ‘Route 3’ mineral railway outlined in the draft National Railway Master Plan laid down by the Government of Cameroon.