Bellzone Mining Regulatory News (BZM)

 23 July 2012

Bellzone Mining plc

("Bellzone" or "the Company")

Forécariah JV Update

Highlights

·; +13,600t of Lump product at port with a grade of 59% Fe

·; +8,800t of Fines product on mine stockpile with a grade of 58%Fe

·; First ore barge loading completed

·; Internal resource development status:

o +76,000m of reverse circulation drilling ("RC") and +18,800m of diamond drilling ("DD") completed

o Yomboyeli Central - 2mt averaging 55%Fe, 20mt surface oxide averaging 38%Fe, 156mt haematite schist averaging 24%Fe to depths of 145m, haematite schist confirmed to depths of 300m (internal conceptual estimate of 143mt at grades up to 40% Fe)

o Wide space RC drilling has delineated 8.3km2 surface oxide at Layah and Yomboyeli West (internal conceptual estimate of 100mt with grades up to 55%Fe)

o Diamond and RC drilling has identified significant haematite schists at Yomboyeli West (internal conceptual estimate of 300mt with grades up to 40% Fe

·; JORC resource planned in Q4 2012

·; Yomboyeli Central low grade surface oxide upgrades to a +58%Fe product with gravity separation process -mass recovery 38% to 42%

·; Anticipated mine life on surface oxide extended to 6 - 8 years with further significant upside potential in haematite schist

·; Project opening ceremony hosted by the Guinean Prime Minister 9 June 2012

Nik Zuks, Chief Executive Officer of Bellzone, commented: "We are delighted with the achievements of the joint venture team. It has taken 18 months from when our geologists first set foot on site to loading our first barge with on specification lump product. The project objectives of implementing a fast track project in parallel with the resource development have paid off with operations now ramping up. Cash flow will start in early Q4 with our first exports and the drilling and testwork programmes will continue to define the resources, with a maiden JORC resource planned in Q4 2012.

As we look forward to 2013, with the installation of the low grade oxide beneficiation plant we see a long life for the operations sustained by the larger lower grade oxide and the haematite schist deposits. Our estimated conceptual resource size gives confidence that the potential to increase production form 4mpta is there and will be assessed as part of the ongoing infrastructure and resource developments."

Conference call

Bellzone Mining plc will be holding a conference call today for analysts and investors at 09.30am (BST).

The dial-in details are as follows:

UK Access Number: 0800 3681 950

International Access Number: +44 (0)20 3140 0668

The Conference ID in all cases will be: 497751#

 Bellzone Mining plc (AIM:BZM) is pleased to announce an update on the Forécariah JV Project (the "JV") in the Republic of Guinea, West Africa, where operations have commenced with the completion of the first barge loading with lump product grading at 59%Fe. In addition, internal resource development has delineated sufficient oxide (which requires beneficiation) to provide a 6 to 8 year 4mtpa operation.

Production and Sales Update

The mine plan has focussed on the initial internal resource of 2mt grading at over 55%Fe. This  2mt of iron oxide cap will provide the first year of production and cash flow to fund the upgrade plant required to process the lower grade surface oxides. The first 20,000t processed to date has provided a lump fraction, grading at 59% Fe and a fines fraction grading at 58%Fe. An additional +45,000t is available for processing after blasting activity to date. The JV is currently in off-take negotiations and is confident of obtaining a buyer for the Forecariah product.

Post commissioning operating costs during the first year of production have been budgeted at US$42/t, which is expected to drop to US$38.71/t at the 4mtpa production output for the upgrade plant.

Grade Specification Range

Project Status

The first permanent barge loading ore circuit has been completed and the second is expected to be completed in October 2012. The marine trans-shipping system is being commissioned.

The initial high grade 4mtpa project capital (Phase 1) was estimated at US$230m by the Bellzone project team in Q1 2011 (50 per cent of which is payable by the Company). The Forecariah project is forecast to come in under budget with an anticipated completion capital of US$208m, of which over US$200m has been committed to date.

To maintain the 4mtpa production, the Company intends to process the low grade oxide at Yomboyeli central (Phase 2). Phase 3 production will target the Layah surface oxide ore, with the mine plan being developed in Q1 2013, following the establishment of a JORC resource in the area The next ore target intended to be the treatment of the surface oxide zone identified at Yomboyeli West.

The planned testwork and feasibility study for Phase 2 will be completed in Q4 2012, with plant construction starting in late Q1 2013 and ramp up of the plant scheduled for Q3 2013. At this stage, and subject to further definition in the feasibility study, the preliminary estimate of additional capital expenditure for the Phase 2 expansion is approximately US$80m. This capital expenditure is expected to be funded from Forecariah operational cashflow. Initial testwork on the low grade oxide fines has indicated that a fines product with grades of +58% Fe can be achieved using standard gravity separation technology with a calculated mass recovery range of 38% to 42%.

The haematite schist ore production will be targeted to coincide with the completion of the surface oxide ore, which is expected to be 6 to 8 years from 2013. Studies in relation to the process solution and capital cost are at a preliminary stage. The capital expenditure to provide a 4mtpa operation has been estimated, at a conceptual level, at an additional US$300-350m which again is expected to be funded from the JV's operating cashflow.

The Forecariah operations continue to enjoy an excellent relationship with the Guinean government. The Guinea Development Corporation ("GDC"), the CIF subsidiary that holds the license is working with the Ministry of Mines to ensure that the authorisation to produce and export iron ore is converted to the first Mining Permit issued under the revised Mining Code. The conditions outlined by the government in the letter authorising commercial operations are being addressed as part of this process . As per the definitive agreements signed with CIF and GDC and the JV shareholder agreements signed with CIF, GDC and CIF have warranted that on issue of the mining permit it will be transferred to the JV operating company Forecariah Guinea Mining SA ("FGMSA")

Resource Development

Resource development work continues apace with over 76,000m of RC drilling and over 18,800m of DD completed to date. Infill drilling through Yomboyeli central has been completed. Wide space RC drilling has delineated 9.1km2 of surface oxide at Layah and Yomboyeli West. In addition, at depth significant haematite schists at Yomboyeli West and Magnetite schists at Layah have been intersected. As a result of this work, the JV is confident that the anticipated mine life on surface oxide can be extended to 6 - 8 years with further significant upside potential presented by the haematite schist material. A summary of progress to date is set out below. An infill drilling programme on these areas is in progress to support the conversion of the internal estimates to JORC resource standard in Q4 2012.

The tonnage and grade estimation information disclosed in this announcement has been conducted by Jason Livingstone BSc; Jason is Bellzone's Exploration and Development Manager and 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

Enquiries:

Bellzone Mining plc

Terry Larkan/Graham Fyfe +61 (0) 8 9420 8900

Canaccord Genuity Limited

Nominated Adviser and Joint Broker to Bellzone +44 (0)20 7523 8000

Andrew Chubb/Tarica Mpinga

Renaissance Capital Limited

Joint Broker to Bellzone +44 (0)20 7367 7777

Rob Edwards

Tavistock (UK)

Jos Simson/Emily Fenton/Mike Bartlett +44 (0)20 7920 3150 / +44 (0)7899 870 450

PPR (Australia)

David Ikin

+61 (0) 8 9388 0944 / +61 (0) 408 438 772

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 2015 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 315 million tonnes. A Supergene BIF JORC resource of 98.5 million tonnes at 36.5% Fe has been delineated and shows the potential to upgrade to produce a blended product of 151 million tonnes of +59% Fe material. The ongoing oxide and Supergene BIF resources development programme is anticipated to increase this during 2012 and 2103. 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 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. The Forécariah permits are held in a CIF subsidiary, Guinea Development Corporation ("GDC") and will be transferred to the JV operations company, Forécariah Guinea Mining SA as per the terms of the definitive and JV shareholder agreements. Commercial production commenced in May 2012 and production will be ramped up through 2012 to a rate of 3‐4 mtpa.

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. A key anomaly has been drilled with results due in Q3 2012

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 kilometres 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.