Company Overview

African Hillside

African Minerals aims to create value through exploration, discovery and development.

African Minerals Limited (“the Company”, “African Minerals”, or “AML”), the mineral exploration and development company with significant iron ore and base metal interests in Sierra Leone, West Africa.

The Company holds an extensive portfolio of mineral rights in Sierra Leone, a country in which it has been actively investing since 2003. Sierra Leone is a mineral rich country which has been largely unexplored and has recovered quickly from a period of instability. Elections held in Sierra Leone during 2007 resulted in a smooth handover of power demonstrating a successful African democracy.

African Minerals completed the country’s first aeromagnetic survey during 2004 and subsequent exploration programmes and multi-element sampling analysis have resulted in the Company assembling a large mineral exploration portfolio in Sierra Leone. The Company is particularly excited by the progress at its flagship project, the Tonkolili iron ore project, where a JORC compliant magnetite resource of 10.5 Billion tonnes has been prepared by SRK Consulting (UK) Limited. This is the world’s largest reported JORC compliant magnetite iron ore mineral resource and African Minerals is in a very strong position to realise the full potential of the Project and compete alongside leading iron ore producers in supplying international steel markets. Additional exploration activities at Tonkolili have also confirmed the potential for 800 Million tonnes of hematite mineralisation.

The Company signed a lease agreement with the Government of Sierra Leone in November 2008 over key rail and port infrastructure. Dependent upon the results of engineering studies, the Company will refurbish and construct rail and port facilities to accommodate its iron ore production and shipping capacity requirements and provide third party access at commercial rates.

The strength of AML’s iron ore assets were clearly endorsed by investors’ response to the equity placings that have taken place over the past 15 months, which took place successfully at a time when very difficult market conditions prevailed. In addition on 6th January 2010 African Minerals entered into a conditional strategic agreement with China Railway Materials Commercial Corporation ("CRM") whereby subject to due diligence and pursuant to the conditional agreement, CRM will take a 12.5% stake in AML for £152.6m. This will be followed by off-take agreements whereby CRM will purchase hematite and magnetite iron ore for a minimum of 20 years. The Company has in place the necessary funding and industry experienced personnel to accelerate the development of its iron ore operations in order to unlock further shareholder value.