Bellzone Mining Regulatory News (BZM)

20 December 2012

Bellzone Mining plc

("Bellzone" or "the Company")

Kalia - Significant DSO Resource Statement and a 98.7% Increase in Oxide Resources

Highlights:

·; Focus on higher grade ore

·; 87.5 million tonnes of direct shipping ore identified

·; 98.7% increase in Oxide and Supergene BIF resources

Bellzone Mining plc (AIM:BZM) is pleased to announce a 98.7% increase in tonnes and a 2.8% increase in grade for its total Oxide and Supergene banded iron formation ("SBIF") resources from 413.9 to 822.6 million tonnes at 36.8% iron content ("Fe") at its wholly owned Kalia Mine Project (the "Kalia Project").

The total Direct Shipping Ore ("DSO" - as defined below) JORC resources are 87.5 million tonnes at a grade of 54.1% Fe (cut-off at 50% Fe) which can be readily upgraded to a product grade ore through crushing and screening.

The Kalia Project consists of two large iron rich mineralised deposits, Kalia I at 19 kilometres in length and Kalia II at 20 kilometres in length. The project is located approximately 300km to the east of Conakry in the Republic of Guinea, West Africa. The globally significant resource defined at Kalia I is supported by more than 200,000 metres of drilling and in excess of 80,000 assay samples. The iron ore resources consist of four distinct mineral types which are DSO, Oxide, SBIF and Magnetite (including Banded Iron Formation ("BIF") and Magnetite Schist). The material is formed in horizontal layers with the DSO on or near surface. This overlays the Oxide that in turn covers the SBIF that sits above the Magnetite.

Glenn Baldwin, CEO of Bellzone said: "The work undertaken over the past 12 months has given us a real platform from which to develop. This work programme has enabled us to define a DSO resource at Kalia I and enhances our confidence in the total Oxide resource. While we always knew we had a large resource, our confidence has been increased due to the focussed work we have recently undertaken, and we are pleased to demonstrate the massive potential of this project ahead of schedule."

 Glenn Baldwin continued:

"The extent of the DSO provides huge opportunity for alternative and innovative development strategies for the optimisation work being conducted on the previously announced feasibility study. The flexibility we now have, together with the experience we have earned through our involvement in developing the Forecariah operations, has us looking forward to an exciting 2013."

The Company is focussed on targeting higher grade resources for mining first as part of its development strategy for the Kalia Project and, as such, has set out an updated summary, as provided by CSA Global, of the project's resources and product specifications as well as some details on its current mine plan for developing the same: 

DSO, Oxide and SBIF Resource Summary

Magnetite Resource Summary

Beneficiated Product Table

The key aspect of the Magnetite resource is the metallurgical properties of the BIF lodes, which are typically 200-300 metres wide that combine to make zones up to 800 metres in width. Extensive Davis Tube Recovery ("DTR") Testwork completed by Bellzone on the Kalia I JORC Magnetite Resource shows an average mass recovery of 31.86% giving 1.475 billion tonnes of 68.7% Fe Magnetite concentrate product.

Pursuant to its feasibility study, the Company has included the extraction and treatment of the Magnetite BIF in its mining plan, so that it will be mining a resource of approximately +27% Fe. The overlying low grade Magnetite schist must be mined because of its structural relationship to the BIF, but this will be selectively mined and stockpiled.

In addition to Kalia's primary Magnetite ore, the DSO, Oxide and SBIF components of the Kalia Project's resource return a low cost, stable, quality fines product of 309.2 million tonnes at +58% Fe over a strike length of only 13 kilometres of the total 39 kilometres of mapped Oxide and BIF within Bellzone's recently approved Mining Concession. By utilising a spiral gravity plant to upgrade the -1mm fraction of the DSO, a stable product of 66.9 million tonnes grading at 58% Fe will be produced. By upgrading the -1mm fraction with low cost spiral technology the DSO cut-off grade could be lowered to 50%, thus increasing the available low cost material for this resource.

Finally, diamond drillhole KADD1955, at the Kalia II prospect, located 20 kilometres east south east of Kalia I along a mapped BIF trend, has intersected BIF, at a downhole depth of 176 metres to its current depth of 359 metres. Bellzone is very excited to confirm significant widths of BIF mineralisation at this prospect which verifies the extensive strike extents of the Kalia Magnetite deposit.

Glenn Baldwin concluded that "this game-changing news for Kalia should not overshadow the significance of the impending shipment of first iron ore out of Guinea since 1966 that will happen this month despite some commissioning issues with the floating transhipment system, which has pushed shipment into late December."

Enquiries:

Bellzone Mining plc

Peta Baldwin, Corporate Affairs +44 (0) 1534 834 698

Canaccord Genuity Limited

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

Andrew Chubb/Tarica Mpinga

Tavistock (UK)

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

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 Project is the Company's flagship project with a resource of 6.16Bt of Magnetite. The Forécariah iron ore mine commenced production in May 2012 and is a joint venture between Bellzone (50%) and China International Fund Limited (50%).

www.bellzone.com

Competent Persons Statement:

The information in this announcement that relates to in-situ Oxide and Supergene BIF Mineral Resources is based on information compiled by Grant Louw of CSA Global who have been retained as an independent consultants. Grant Louw takes overall responsibility for the Oxide and Supergene BIF Mineral Resource estimates. Mr Louw is a member of the Australian Institute of Geoscientists and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a competent Person in terms of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2004 Edition). Grant Louw consents to the inclusion of such information in this announcement in the form and context in which it appears.

The information in this announcement that relates to in-situ Magnetite Mineral Resources is based on information compiled by Galen White of CSA Globa who have been retained as an independent consultants l. Galen White takes overall responsibility for the Magnetite Mineral Resource estimates. Mr White is a Fellow of the Australian Institute of Mining and Metallurgy and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a competent Person in terms of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2004 Edition). Galen White consents to the inclusion of such information in this announcement in the form and context in which it appears.

The information in this announcement that relates to drilling information is based on information compiled by Jason Livingstone of Bellzone Management Services. Jason Livingstone takes overall responsibility for the drilling discussed. Mr Livingstone is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a competent Person in terms of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2004 Edition). Jason Livingstone consents to the inclusion of such information in this announcement in the form and context in which it appears.

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