Bellzone Mining Regulatory News (BZM)

21 November 2011

Bellzone Mining plc

("Bellzone" or the "Company")

Forécariah JV Progress Update & Analyst Call

·; Project remains on schedule to achieve production in Q1 2012

·; Identified 146 million tonne internal resource

o For initial and long-term production

o Extensive exploration potential identified

·; Required studies and assessments completed and approvals awaited

o Mine and process plant feasibility studies completed and awaiting Government approval

o Port feasibility study review completed by Government

o SEIA / EIA completed and awaiting approval

·; Procurement & contracts in place for production in Q1

o Marine fleet finalised and procured

o Contracts for Marine Fleet Management, Trans-shipping, Health and Security, Mine to Port haulage and Port Construction all signed

o Mining and haul fleets on route to Conakry with camps, buildings, and all other equipment

o Phase 1 equipment shipped

·; Road construction on track for haulage in February 2012

Bellzone Mining plc (AIM:BZM) is pleased to provide a progress report on the Forécariah JV Project (the "JV") in the Republic of Guinea, West Africa, which remains on schedule to commence production of iron ore in Q1 of 2012.

Nik Zuks, CEO of Bellzone, stated: "It is very satisfying to update on such a level of progress at Forécariah, as we near the end of 2011 and move for production in the first quarter of the new year. I would like to thank our shareholders for their continued support and look forward to updating on our mining activities throughout 2012."

There will be a call for analysts to discuss progress at Forécariah ahead of production commencing in the next quarter.

The analyst call will be at 07.30am on Monday 21 November 2011. If you would like to participate in this call, please dial in to register on 0800 368 1950 / +44 (0)20 3140 0668 (PIN: 752852#) at 07.25am. For any queries regarding the call, please contact Jos Simson on +44(0)20 7920 3150.

Resource Development

The initial internal resource development and mine planning work has focused on defining sufficient production for initial start up, which is intended to provide product through to end Q4 2012.

The mapped iron oxide cap is a product of the Marampa beds. The Marampa beds extend from within Sierra Leone to 8km NNW of Yomboyeli. Of the 8km strike of the prospective Marampa Beds within the JV lease area, the internal resource estimate has been established across approximately 1km of the central Yomboyeli zone, which runs in parallel to two other ridges, namely Yomboyeli West and Yomboyeli East. The current resource development programme will continue to define the remaining 7km of the identified Marampa beds and the parallel ridges at Yomboyeli.

An initial internal resource of;

·; 2.0mt of iron oxide cap, grading at +55%Fe, producing a crush and screen product of 58%Fe has been identified as the initial mining zone

·; 5.9mt of iron oxide canga grading at 45.7%Fe, initial gravity testwork indicates grades of 58% Fe are achievable

·; 13.2mt of lower grading oxide, 34%Fe, at surface

·; 38 million cubic meters of hematite schist, with calculated densities of 3.3 t/m3, providing 125mt, has been identified at depths of 5m to 100m. Testwork conducted to date indicates the hematite schist can be upgraded to grades of 60%Fe to 64%Fe, with mass recoveries of over 60%

·; Haematite schist is open at depth and will be defined with a deep diamond drilling programme

Ongoing upgrade testwork and infill drilling will further define the hematite schist and surface oxide canga that will be used in planning production from Q4 2012.

The Yomboyeli exploration development programme continues in the central zone to permit detailed production planning. A 30,000m RC drilling programme at Yomboyeli west has started, with first holes intersecting surface oxide up to 12m thick and zones of hematite schists at depth. Diamond drilling at Moussaya has intersected multiple zones of magnetite. Results from these programmes are expected to add to the already internally identified resources and will be available in Q1 2012.

Potential of the Lease Area

Yomboyeli Central

·; Drilled to 100 meters, open at depth

·; Central haematite schist core of 140 meters could be extended to an economic depth of + 200 meters

Yomboyeli West

·; Extensive haematite schist zones discovered, length of zone potentially three times that of Yomboyeli Central

·; Extent of the oxide cap has yet to be determined

·; Magnetic high adjacent to the haematite schist yet to be tested.

Laya

·; Iron bearing zone mapped, yet to be drilled. Forms part of the mapped Marampa bed extensions and could be an extension of the Yomboyeli Central zone.

Moussaya

·; Multiple parallel magnetite bearing zones discovered

·; Haematite carapace extent yet to be tested

Additional targets

·; Seven km of the haematite bearing Marampa beds yet to be explored

·; New targets identified by the magnetic survey yet to be explored

·; Further exploration is likely to uncover additional haematite schist bodies, they cannot be identified using magnetic

·; Extensive Santiguiyah potential yet to be fully tested. Current testwork indicates the potential to achieve a +60%Fe product and ongoing testwork will further define the next phase of the exploration programme

Road Development

The 76km road route comprises 20km of new road required to bypass small villages, and 56 km of existing road. The existing road upgrade and new road construction to support the bulk ore road trains is being completed in five sections, with various aspects of the work awarded to four main contractors. The road development is on schedule to permit haulage of ore in February 2012. Progress to date:

·; Entire length of the road has been cleared and grubbed,

·; Borrow pits have been opened,

·; Culverts are under construction,

·; Drainage, cut and fill operations are underway; and

·; Layering has started in some sections.

·; The road development is on schedule to permit haulage of ore in February 2012.

Konta Port Development

China Communications and Construction Company ("CCCC") and Second Harbour Consultants Co have completed the port feasibility study. This study has been issued to the Government and received its approval.

Following award of the Port EPC contracts to CCCC, the materials for the first phase are already on route to Guinea, where they will be assembled ahead of the Q1 2012 production schedule. Final approval is awaited from the Ministry of Mines to allow the start of land acquisition, site clearance and construction. The development of the port remains on schedule to achieve first shipment of product from Forécariah in Q1 2012.

Marine Operations

Panamax

Detailed inspections on the identified Panamax to serve as a floating stockpile and transhipping vessel, the MV Magnetic Isle (to be renamed FGM Iron), have been completed. The sale has been confirmed and deposits paid. Mobilisation of the vessel to Guinea waters will be in December, with arrival scheduled in January 2012.

Harbour Tugs

Negotiations for the harbour tugs, FGM Honour and FGM Honesty, have been completed, the sale confirmed and deposits for the vessels have been paid. Mobilisation of the vessels to Guinea will be in December, arriving January 2012.

Pilot Vessel

The Pilot vessel, FGM Integrity, has been sourced and purchase completed. Mobilisation will be with FGM Iron, as it will be carried on its deck.

Transshipping Contract

Four tenders for the trans-shipping operation from port to export vessel were evaluated. The Contract has been awarded to Cathay Offshore, who are experienced in bulk materials trans-shipping operations. The contract covers the supply and operation of all vessels and equipment from port outload to export vessel loading. The 3 barges and 2 tugs, complete with stevedoring equipment will depart Singapore in December, arriving in Guinea by February 2012.

Marine Management Contract

Global International Transportation has been awarded the contract for marine operations management covering crew, maintenance, insurance and operations of all marine vessels owned by Forécariah Holdings.

Mine and Plant Development

The Bellzone and CIF mining team have completed the mining and processing feasibility study all equipment has been purchased, including:

·; The crushing and screening plant - on ship to Guinea

·; The road haulage truck fleet - on ship to Guinea

·; Mining haulage fleet - on ship to Guinea

·; Earthmoving equipment - on ship to Guinea

·; Accommodation camp - on ship to Guinea

·; Drilling and blasting equipment - on ship to Guinea

·; HV and LV workshops (with tools and equipment)

·; Health and emergency clinics, including ambulance

The vessel with the above equipment is due to arrive in Guinea in early December, delivering the purchased equipment and plant for site starting December 2011 through to January 2012.

The tonnage estimation information disclosed in this announcement has been reviewed by Bernhard Neehoff BSc. Post Grad Dip Sc.; a member of the Australasian Institute of Mining and Metallurgy. He has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken, to qualify as a Competent Person for the purposes of this announcement.

About 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.

Kalia Mine

The Company's flagship project, the Kalia Mine Project, is planned to commence production in 2014 and be producing iron ore and iron ore concentrate at a rate of 50 million tonnes per annum in 2018. The Kalia Mine Project has a 6.16 billion tonnes magnetite JORC resource and an oxide JORC resource of 193 million tonnes. A Supergene BIF JORC resource of 92.5 million tonnes at 36.5% Fe has been delineated and shows the potential to upgrade to produce 37 million tonnes of 63% Fe material. The oxide and Supergene BIF resources have been established from just 10.5% of the 55km2 of the mapped surface oxides on the Kalia permit. Drilling results and internal estimates indicate that the Kalia Mine Project has the potential to host more than 10 billion tonnes of magnetite and 2 billion tonnes of oxide.

CIF - Project, Financing & Infrastructure Partner

Bellzone has a Definitive Agreement ("Agreement") with China International Fund Limited ("CIF"). The Agreement gives CIF right of first refusal to purchase the Kalia Mine Project's production at market rates and CIF commits to providing Bellzone commercially related funding for the development of the Kalia Mine Project.

The Agreement contains CIF's commitment to fund and build commercially operated rail and port infrastructure that will enable Bellzone to export production from the Kalia Mine Project. The infrastructure is being developed by Kalia Horizon Minerals Pte Limited, an entity that is 90% owned by CIF with Bellzone having a 10% carried interest. The Agreement provides for Bellzone to be the lowest cost user with permanent priority access.

Forécariah JV

Bellzone and CIF also have fully funded a joint venture to undertake the accelerated exploration and development programme at CIF's Forécariah iron permits that lie between 30 and 80 kilometres from the Guinea coast. Production is scheduled to start in Q1 2012, based on an internal resource estimate of 146 million tonnes of oxide, with an initial production rate of 3-4 mtpa of oxide ore, ramping to a rate of 10 mtpa in 2013.

Other activities

Bellzone has completed a mapping and surface sampling programme identifying highly prospective targets at its Sadeka Nickel/Copper Project. The VTEM aerial survey has been completed and highly prospective targets have been identified and will form the basis of the 2012 drilling programme due to commence in December 2011.

Bellzone has acquired the rights to buy 70% of Compagnie Miniere de L'Ouest Africain SA, incorporated and holding tenements in Mali. The company is undertaking geological studies on the tenements which are prospective for iron ore before making an investment decision.

About China Sonangol and China International Fund Limited ("CS Group")

CS Group is headquartered in Hong Kong Special Administrative Region of China, and has investment footprints in 3 continents and more than 20 countries.

The primary activities of CS Group is in oil, gas and mineral exploration and production, commodities trading and is also globally active in real estate and infrastructure development, where in particular, through China International Fund, it has participated in the rehabilitation and development of new and existing transport infrastructure in Angola such as New Luanda International Airport, where it is envisioned to be a major airport hub West Africa. Additionally, on its railway experience, CIF rehabilitated almost 3,600 kilometers of railway in Angola. CIF has also constructed 3 logistics base in Angola where in total occupies 925,000m2, as the logistical backbone to support its infrastructure and industrial implementation and development program, consisting cement and brick production plants, sand and stone quarries, as well as production of industrial materials such as steel sheets and plastic pipes.

With the strengths of its experience in large scale infrastructure development in Africa, CS group is in the position to accelerate the iron ore exploration and production with its Joint Venture partner Bellzone Mining PLC.

CS Group has a vision for Africa. This vision is, through South-South cooperation, where in partnership with private industry and with the government, CS Group will develop public transport infrastructure such as road, rail, seaports and airports to improve connectivity and accessibility, as well as public utilities, agriculture, aqua culture, public housing, construction materials, mining and oil and gas projects, where its commercial objectives are aligned with the needs of countries to develop the economy and improve, ultimately, the living standards of the people.