MARAMPA FIRST SHIPMENT & PRODUCTION FROM COLOMBIA (5524W)

TIDMLOND

RNS Number : 5524W

London Mining Plc

01 February 2012

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London Mining Plc

Quoted on London AIM (LOND LN)

("London Mining" or the "Company")

1 February 2012

FIRST SHIPMENT FROM MARAMPA AND PRODUCTION FROM COLOMBIA

Marampa, Sierra Leone

   --      First shipment of 49,656wmt has departed Freetown, destination Europe 
   --      Two further shipments expected in February 
   --      Plant run rate exceeds target for January

London Mining, Colombia

   --      Production of coke has commenced 
   --      Capacity of 200ktpa expected in Q3 2011

Graeme Hossie, Chief Executive of London Mining said "January 2012 has been a landmark month for London Mining. We have commenced exports from our operation in Sierra Leone and production from our operation in Colombia. We are focused on producing 1.5Mt at Marampa in 2012 and are encouraged by the Marampa product specification which allows us to capture a significant grade related pricing premium."

Marampa, Sierra Leone (100%)

London Mining today announces that it has completed loading of the first ship with 49,656 wet metric tonnes of Marampa concentrate. This ship has now departed Freetown and is destined for Europe. A premium price to the Platts 62% cfr China benchmark is expected to be realised. A second ship has been ordered for February with the final destination expected to be China. A third ship has also been requested from Glencore. The "Pride of Marampa" transhipment vessel is expected in Freetown at the beginning of March 2012 which is expected to provide the capability to load Panamax and Capesize vessels by the end of Q1 2012.

Marampa has produced 93,000dmt of concentrate since production commenced in December 2011, of which 75,000dmt was achieved in January 2012. Ramp up of the plant continues with the average daily run rate of 2,500dmt/d (with a maximum rate of 3,800dmt/d) exceeding the target set for January. The current production target of 1.5Mt in 2012 assumes an average daily production rate of 3,200dmt/d in February increasing to 4,100dmt/d in March. Capacity of over 5,000dmt/d is expected once the ball mill is integrated into the processing circuit in Q3 2012. A further increase to capacity to the current plant is expected with the commissioning of the gravity circuit in Q4 2012. The installation of a second optimised plant is expected to increase Phase 1 capacity to 13,900dmt/d by the end of Q3 2013 to achieve targeted annual production of 4.2Mt in 2013 and 5Mt in 2014.

London Mining, Colombia (100%)

Coke production has commenced in Colombia and the operation is now focussing on completing the oven build out, ramping up production, optimising product specification and commencing transport of coke by road to Barranquilla where port capacity has been secured for 200ktpa of exports. London Mining expects to reach the targeted production run rate of 200ktpa by the end of Q3 2012.

For more information, please contact:

 
 London Mining Plc 
  Graeme Hossie, Chief Executive 
  Officer 
  Rachel Rhodes, Chief Financial 
  Officer 
  Thomas Credland, Head 
  of Investor Relations             +44 20 7408 7500 
 Liberum Capital (Nominated 
  Advisor/Broker) 
  Clayton Bush / Christopher 
  Kololian                          +44 20 3100 2000 
 J.P. Morgan Cazenove (Broker) 
  Neil Passmore / Ignacio 
  Borrell                           +44 20 7742 4000 
 Brunswick Group LLP 
  Carole Cable / Daniel 
  Thole                             +44 20 7404 5959

About London Mining

London Mining is focused on identifying, developing and operating mines to become a mid-tier supplier to the global steel industry. London Mining is producing high specification iron ore from its Marampa Mine in Sierra Leone and developing two other iron ore mines in Greenland and Saudi Arabia as well as a coking operation in Colombia. All London Mining's assets have deliverable production with potential for expansion. The Company listed on AIM in London on 6 November 2009. It trades under the symbols LOND.L (Reuters) and LOND LN (Bloomberg). More information about London Mining can be found at www.londonmining.co.uk.

Neither the content of the Company's website nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into or forms part of this Announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to compare, continue to hold, or dispose of, securities in the Company.

This Announcement is not for publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Canada, Australia, Japan, South Africa or any jurisdiction in which the same would be unlawful.

Certain statements in this Announcement are forward-looking statements which are based on London Mining's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, London Mining undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The information contained in this Announcement is subject to change without notice and London Mining assumes no responsibility or obligation to update publicly or review any of the forward-looking statements contained herein.

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