AMI.L Regulatory News (AMI)

03 July 2014

African Minerals Limited

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

Q2 2014 and H1 2014 Export Tonnage

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 regarding its production for the first half of 2014 and the second quarter.

Highlights

· Q2 export tonnage of 4.52Mt in 26 vessels; (Q1: 4.55Mt in 26 vessels)

· Revenue capture improving: Discounted All in 32 ("A32") and Blend tonnage was 61% of products sold in Q2 (Q1: 71%), including just 11% in June

· Completion of loading of the Cape Riviera on 22 June signalled the sailing of the 25,000,000th tonne of direct shipping iron ore from the Tonkolili Project

· Cape Riviera is also the first formal vessel chartered in-house by the project on a cost and freight ("CFR") basis and arranged by our own marine team, with an indicated saving of around 6% over free on board ("FOB") pricing.

· Exports so far this year to end June of 9.1Mt, on target for full year guidance of 16-18Mt.

In Q2, the fully integrated Tonkolili mine / plant / rail / port / marine project shipped 4.52Mt of direct shipping iron ore in 26 cape size vessels, compared to 4.55Mt in the first quarter. The tonnage was affected by a planned 6 day shutdown at the rail and port primarily for upgrading of bridges along the railway to increase track speeds, reduce cycle times and improve asset life. Of this tonnage 2.7Mt was sold as A32 or lump blend, compared to 3.2Mt in Q1, improving revenue capture. In June, with 9 vessels completed, all exports were lump and fines, with the exception of only one vessel of lump blend.

On 22 June the Company completed loading of the Cape Rivera with 182,289t of standard iron ore fines. The completion of loading of this vessel takes the total material exported from the operation to over 25Mt since the commencement of loading for export on 2 November 2011.

Prior to the loading of this vessel, a total of 141 Cape Size ocean going vessels and 5 smaller vessels had been despatched as standard sales cargoes (excluding test cargoes), entirely on an FOB basis, where AML receives payment net of the cost of freight for shipping to the customer.

The Company has previously communicated its strategy of aiming to better manage the cost of freight by moving some of its exports to a CFR basis, where the Company assumes the cost of the vessel. Cape Riviera is the first standard cargo that has been arranged by the Company's own marine team on a CFR basis, and has shown a marked reduction in the freight cost incurred. While the indicated freight cost fix for Cape Riviera was $19.93/t, the net cost of the rate negotiated for this vessel, adjusted for insurance, was $18.80/t, a saving of $1.13/t or 6%.

Total tonnes shipped from the project year to date to the end of June are 9.1Mt, and the project remains firmly on track for its export guidance of 16-18Mt for the year.

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

"This milestone achievement that the project has reached, of already selling 25Mt in its operating life, is significant in that this has been achieved just 30 months after commencement of exports. Furthermore, exports commenced just 42 months from the drilling of the discovery hole by the Executive Chairman, and just 15 months from the granting of the mining lease.

This month is also significant since it marks our first self-arranged CFR cargo, and the 6% saving we have achieved, potentially in a permanent change, shows the benefit of our stated strategy of bringing more of our own control into the costly element of shipping. Marine costs are indeed as much as our land-side C1 costs, and represent an area which can yield significant near term savings.

Our sustainable production levels have also reached well over 80% of design capacity within just 12 months of the end of construction (with the commissioning of the second large wagon dumper). Production and exports to date remain on track and we are confident that our various technical improvements - key of which is the commissioning of our de-sliming circuits as announced last week - will allow us to continue to produce at our budgeted levels with enhanced product quality all year round."

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