African Minerals Ltd Litigation Update (3879T)

TIDMAMI

RNS Number : 3879T

African Minerals Ltd

03 October 2014

3 October 2014

African Minerals Limited

("African Minerals", "AML", or "the Company")

Litigation Update

With reference to note 16 in its interim results for the half year ended 30 June 2014, published on 30 September 2014, the Company was informed yesterday that the Court of Appeal have given Renaissance Capital permission to appeal certain aspects of the High Court decision in March 2014. Their appeal seeks an increase of $63m (plus interest and costs) in the amount awarded against and paid by the Company. The Company has already filed its appeal to reduce the amount awarded, and these two appeals will be combined and are expected to be heard by the Court of Appeal in the first half of 2015. The Company remains confident that it has good prospects of successfully defending Renaissance Capital's appeal, and reasonable prospects of success on its own appeal.

Contacts:

African Minerals Limited

+44 20 3435 7600

Mike Jones

Tavistock Communications

+44 20 7920 3150

Jos Simson / Nuala Gallagher

Jefferies

+44 20 7029 8000

Nick Adams / Alex Collins

About African Minerals

African Minerals operates the Tonkolili Iron Ore Project (the "Project") in Sierra Leone, with a JORC compliant resource of 12.8 Bt. The multi-generational Project is being developed in a number of staged expansions. In 2013, African Minerals completed sales of 12.1 Mt to its customers. The current year sales guidance is for 16-18 Mt of exports.

Phase II expansion will see exports increase to 25 Mtpa, and will incorporate production of a high grade concentrate product. Concentrate production is expected to begin by the end of 2015 and will eventually displace current DSO production as concentrate volumes increase and the DSO resource depletes over time.

The Company has also developed significant port and rail infrastructure to support the operation of the Project, via its subsidiary African Rail and Port Services (SL) Limited ("ARPS"), in which the Government of Sierra Leone ("GoSL") has a 10% free carried interest.

The Project companies are currently owned 75% by AML, and 25% by Shandong Iron and Steel Group ("SISG"), except for ARPS, which is currently owned 75% by AML and 25% by SISG, with the GoSL having the right to a 10% free carried interest from AML.

www.african-minerals.com

ENDS

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