Establishment of office in Beijing, China

TIDMBZM

Bellzone Mining PLC

02 June 2011

2 June 2011

Bellzone Mining plc

("Bellzone" or the "Company")

Bellzone establishes office in Beijing, China

-- New office to house 15 staff in Beijing

-- Beijing presence will further integrate and strengthen the Bellzone and China International Fund Limited ("CIF") relationship

-- Provide hands on support in ensuring Forecariah JV implementation plan is achieved

-- Integrate the Bellzone CIF owners team more effectively with the Kalia rail and port infrastructure partners China Communication and Construction Company ("CCCC") and China Rail Eryuan Engineering Company ("CREEEC")

Bellzone Mining plc (AIM:BZM), the iron ore and nickel/copper company developing the Kalia Mine Project and the Forecariah joint venture ("JV") in conjunction with CIF in the Republic of Guinea, West Africa, is pleased to announce the establishment of an office in Beijing, China.

The office, located in the TYG Centre, will accommodate 15 personnel responsible for coordinating Bellzone's extensive work programmes with CIF. In addition, a newly established presence in Beijing will allow Bellzone to interact closely with Bellzone and CIF's engineering contractors (CCCC and CREEC), which are involved in the implementation of the Forecariah joint venture and mine project ("Forecariah JV") and are designing and implementing the 286km multi-user rail and port infrastructure project, which will connect the Kalia Mine Project to the coast by 2014.

The multi-user rail and port project will be developed in the area covered by Bellzone's Infrastructure Accord (the "Accord") reached with the Government of Guinea and signed into law by Presidential Decree on 31 August 2010. The Accord provides for:

-- 30 month timescale to complete feasibility studies and finalise the convention for the infrastructure

-- Republic of Guinea to facilitate all administrative processes to contribute to the optimal completion of the feasibility studies

-- Bellzone to be issued a Certificate of Exclusive Build, Operate and Transfer ("B.O.T.") Dealer licence on signing of the infrastructure convention

The infrastructure studies being undertaken by CCCC and CREEC are funded by the initial injection of $40 million from CIF per Bellzone's definitive agreement with CIF announced in August 2010. Kalia Horizon Minerals Pte Limited, the special purpose vehicle established by CIF and Bellzone, will develop the infrastructure assets and hold the exclusive B.O.T license. As previously announced, Bellzone will retain a 10% carried interest in Kalia Horizon Minerals Pte Limited.

Bellzone Chief Executive Officer, Nik Zuks commented, "The establishment of an office in Beijing is a major step in ensuring the delivery of the Forecariah JV project and is a clear indication of the integrated nature of the project development environment. The establishment of the office has been welcomed by the CIF project teams, which further demonstrates the strong relationship and commitment we have with our partner, CIF. I am very pleased at the collaborative and professional manner in how the teams from Bellzone, CIF and the engineering companies are working together. The benefits of this can be seen from the exceptional progress they are making at our Forecariah JV project which has seen huge development over the last few months which is paving the way for Guinea's first iron mine to come online early next year. "

Enquiries:

Bellzone Mining plc

Terry Larkan +61 8 9420 8900

Tavistock

Jos Simson/Paul Youens +44 (0)20 7 9203 150

+44 (0)7899 870 450

 
Canaccord Genuity Limited 
 
Nominated Adviser and Joint Broker 
 to Bellzone                         +44 (0)20 7050 6500 
 
Andrew Chubb/Tarica Mpinga

Renaissance Capital Limited

Joint Broker to Bellzone

Simon Matthews/Thomas Beattie +44 (0) 207 367 7777

Bellzone Mining plc

Bellzone Mining plc is an exploration and resource development company with iron ore and nickel / copper permits in the Republic of Guinea, West Africa.

The Company's flagship project, the Kalia Mine Project has a magnetite JORC resource of 3.74 billion tonnes, located on the Kalia I prospect and an initial oxide JORC resource that will produce 44 million tons of 58% product from 4.3% drilled to date of the 55km2 of the mapped surface oxides of the Kalia permit.

Drilling results and internal estimates indicate that the Kalia Prospect has the potential to host more

than 10 billion tonnes of magnetite and over 2 billion tonnes of oxide at surface.

In addition to the Kalia iron mine, an accelerated exploration and development programme is currently underway at the China International Fund ('CIF') held Forecariah iron permits that lie between 60 and 80 kms from the Guinea coast.

Bellzone and CIF are jointly developing these permits which are prospective for oxide and magnetite. The accelerated development plan is designed to support an initial production target rate of 3-4 mtpa of direct shipping ore ('DSO') in Q1 2012 ramping up to a target production rate of 10 mtpa by 2013.

Bellzone is committed to the staged development of the Kalia Iron Project, which includes a 50mtpa iron ore facility, rail and port, with initial production scheduled in 2014. Stage one is planned to bring a 20mtpa oxide online in 2014 and a 10mtpa magnetite concentrator in 2015. Stage two increasing the oxide output to 30mtpa in 2017 and doubling the concentrate capacity to 20mtpa by 2018.

Bellzone signed an Infrastructure Accord with the Republic of Guinea giving the Company exclusive rights to the designated port and rail areas for purposes of conducting studies for the development of the infrastructure leading to the signing of a convention and concession. The infrastructure forms a key part of the Guinea Government's infrastructure strategy and will support the development of iron ore, bauxite and other minerals in Guinea through its availability for 3rd party use.

On 2 August 2010, Bellzone signed definitive agreements with China International Fund Limited ('CIF'). CIF will finance and develop the rail and port infrastructure and offer a finance package to Bellzone for the development of the Kalia Mine in exchange for the first right to purchase 100% of the off--take of the Kalia Mine at market price.

Bellzone has competed an intensive mapping and surface sampling programme and has defined highly prospective drilling targets at its Sadeka Nickel/Copper Project. Further exploration through VTEM survey on the permit area and a drilling programme on the targets continues.

This information is provided by RNS

The company news service from the London Stock Exchange

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