AMI.L Regulatory News (AMI)

13 May 2014

African Minerals Limited

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

Increase in DSO Resource

African Minerals Limited is a mineral exploration, development and mining company, and is the developer and operator of the Tonkolili iron ore mine in Sierra Leone. The Company today provides an update to its Direct Shipping Ore ("DSO") resource at Tonkolili.

Highlights

· JORC(1) Compliant DSO Mineral Resource Estimate(2) updated to 142.1 Million tonnes ("Mt") grading 57.0% iron as at 31 March 2014.

· 94% of the total Mineral Resource Estimate classified in the Measured and Indicated categories.

· The delineation of an additional 59.5Mt of Direct Shipping Ore(2) will considerably extend the life of DSO operations.

· With a near term expansion of production capacity to 25Mtpa, and with saprolite processing currently expected to commence in 2016, the DSO operations (which will run concurrently with saprolite processing) will be expected to extend to circa 2020.

· An updated saprolite resource, including optimised metallurgical parameters (yield, recovery and concentrate grade), is expected to be available by end Q2 2014.

This announcement presents an updated JORC Compliant Mineral Resource Estimate valid as of 31 March 2014, that supersedes AML's last published JORC Compliant Mineral Resource Estimate(3) of 126.5Mt of DSO grading 58.1% Iron, announced on 16 December 2010.

AML is pleased to report that the JORC compliant DSO Resource has been updatedby Independent Consultants SRK Consulting (UK) Ltd to 142.1Mt grading 57.0% Iron, 2.9% Silica, 6.6% Alumina, and 0.08% Phosphorus. The Mineral Resource Estimate is detailed in the table below(4). SRK's full report will be made available for review on AML's website in due course.

This updated Mineral Resource Estimate reflects that 43.9Mt(5) of DSO material had been mined since the commencement of production up until 31 March 2014.

The Mineral Resource Estimate also reflects: The results of 34,000m of supplementary Mineral Resource definition drilling that has been completed at the Simbili, Numbara, Marampon, and Kasafoni project areas since the last estimate was derived; a revised cut-off grade of 53.5% iron, compared to 56.5% previously, to reflect specifications of the Company's sales agreements; and includes a portion of material previously reported as "High Grade Saprolite Ore".

The delineation of an additional 59.5Mt of DSO has increased the remaining tonnage to 142.1Mt after mining depletion and is expected to extend the life of DSO operations which will run concurrently with saprolite processing to circa 2020.

As previously announced, AML expects to increase production capacity from 20Mtpa to 25Mtpa and to establish its first saprolite concentrator to enter production at 8-10Mtpa in H1 2016. The Company is currently assessing the metallurgical properties of the saprolite component of the Mineral Resource, which was reported in December 2010 at 1.1Bnt, and intends to produce a formal Mineral Resource update regarding the saprolite component of the Tonkolili project shortly. This will also feature optimised metallurgical parameters including yield, recovery, and concentrate grade.

Bernie Pryor, Chief Executive Officer of African Minerals, said:

"The increase in the Tonkolili DSO resource is a significant event. The increased life of the DSO resource, now with over 90% classified in the Measured and Indicated resource categories, will allow the Company to produce a DSO product to 2020, and to take a longer term view regarding the current operations. Production of DSO will be concurrent with our near-term plans to expand production to 25Mtpa and to move into a higher value saprolite hematite concentrate product from 2016.

"We are, of course, excited to embark on this next stage of our expansion, for which we expect to provide more information in due course. The first step of this expansion will be the publication of an updated saprolite resource later this quarter, incorporating the adjustments to the DSO resource as announced today."

Notes & Definitions:

(1) The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ('JORC'), 2012 edition.

(2) Using a 53.5% iron cut-off.

(3) Using a 56.5% iron cut-off.

(4) The derivation of the total Mineral Resource involves the calculation of totals and weighted averages that involve a degree of rounding for presentation purposes. SRK does not consider any such instances of numeric rounding to be material.

(5) JORC compliant Mineral Resource Estimates and mining depletion are reported as dry tonnes

Competent Persons

The information in this press release that relates to Mineral Resources is based on information compiled under the direction of Mr Howard Baker, who is a Fellow of the Australasian Institute of Mining and Metallurgy ("AusIMM"). Mr Baker is a full time employee of SRK Consulting (UK) Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Howard Baker has reviewed this press release and consents to the inclusion in the press release of the matters based on his information in the form and context in which this appears.

In addition to the above, this press release has been compiled under the direction of Dr. Mike Armitage, who is a Chartered Engineer and a Chartered Geologist, a Fellow of the Geological Society and a Member of the Institute of Materials, Minerals and Mining. Dr. Armitage is a full time employee of SRK Consulting (UK) Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr. Armitage has reviewed this press release and consents to the inclusion in the press release of the matters based on his information in the form and context in which this appears.

Contacts:

African Minerals Limited

+44 20 3435 7600

Mike Jones

Tavistock Communications

+44 20 7920 3150

John West / 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 12.8Bnt. The Project, which currently has a 60+ year mine-life, is being developed in a number of staged expansions. In 2013, African Minerals completed sales of 12.1Mt to its customers. The current year sales guidance is for 16-18Mt of exports as the operations focus on operating at the 20Mtpa run rate design capacity.

Phase II expansion contemplates the production of an expanded tonnage including the establishment of a high grade concentrate product with the project ramping up to 25Mtpa.

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