Bellzone Mining Regulatory News (BZM)

9 May 2011

Bellzone Mining plc

("Bellzone" or the "Company")

Maiden Oxide Resource at Kalia Mine Project, Guinea

Bellzone Mining plc (AIM:BZM), the iron ore and nickel/copper company developing the Kalia Mine Project, the Forecariah JV and the Sadeka nickel/copper project in the Republic of Guinea, West Africa, is pleased to announce an initial inferred JORC oxide resource of 111 million tonnes grading at 38% Fe which can be beneficiated using a standard gravity process to produce a quality 58% Fe fines product.

Highlights:

·; Initial inferred oxide JORC Resource of 111 million tonnes grading at 38% Fe

·; Oxide product readily beneficiated using a standard gravity process to produce a consistent and quality saleable oxide product

·; Initial oxide fines product resource of 43 million tonnes with an iron grade of 58% Fe

·; Mass pull (recovery by weight) of 39% - anticipated increase in processing costs offset by government royalty reduction from 7% to 3.5% for a beneficiated product

·; Initial oxide resource concentrated on 2.3km2 (4.2%) of the indentified 55km2 oxide drilling targets

·; Resource is located directly above the 3.74 billion tonnemagnetite JORC resource, thereby reducing magnetite pre-strip costs for 2015 magnetite production

·; Accelerated drilling programme to continue JORC oxide resource expansion with a target of 1.5 billion tonnes (+0.6 billion tonnes (20 years) of saleable oxide product)

·; Targeting minimum of 250 million tonnes of JORC oxide resource (10 years of oxide production) by year end ready for inclusion in the definitive feasibility study ("DFS")

·; Stage 1 drilling well advanced on 13.6km2 Kalia II detrital oxide target - results expected Q4 2011 with estimates of 600mt being identified on the portion drilled to date

·; Stage 2 of the drilling campaign on the Kalia II detrital oxide target will commence in Q4

·; Three new diamond drilling ("DD") rigs purchased, a second reverse circulation ("RC") rig contracted and double shifts initiated to accelerate the oxide and magnetite drilling campaign to increase tonnes on the back of proven grade

Bellzone has mapped 55 km2 of surface oxide material over the Kalia permit area. The maiden oxide JORC campaign has been focused on a 2.3km2 (4.2% of total mapped oxide) area located above the 3.74 bn tonne magnetite JORC resource. The initial oxide drilling programme targeted this material as it must be removed prior to starting the magnetite mining operations. Proving this saleable material as an initial production source supports the optimisation of the mine plan and reduces operating costs. The Company is now well advanced in its drilling programme on its second oxide target, the 13.6km2 Kalia II detrital oxide target. The phase 1 results of the drilling on the Kalia II detritals, which has been underway since November 2010, are expected in Q4 2011 with estimates of 600mt being identified on the portion drilled to date.

The oxide zone over the magnetites comprises varying grades of material related to different stages of oxidation. Typically at the surface there is a direct shipping ore ("DSO") style material and as the oxide zone approaches the magnetite interface the grade varies. The Company undertook work to investigate maximising the oxide potential for a consistent oxide product through processing and beneficiation.

Composite samples were tested at an independent accredited laboratory in Perth, Australia. Favourable results were achieved from standard gravity processes producing a quality oxide fines product grading at 58% Fe, with deleterious elements falling into acceptable ranges. The testwork achieved a mass pull (recovery by weight) of 39%.

The beneficiation provides a larger resource base and a revenue stream from the magnetite pre-strip material with the anticipated additional costs being offset by royalty reduction for concentrated ore from 7% to 3.5% for a beneficiated product.

The Company's oxide development plan is targeting 1.5 billion tonnes (+0.6 billion tonnes or twenty years of saleable oxide product) of oxide resource from five key target areas comprising 63% of Kaila's 55km2 surface oxide potential. The Company aims to develop a minimum of 250 million tonnes of JORC oxide resource (10 years of oxide production) for inclusion in the DFS that is to be completed by year end.

Bellzone has accelerated the oxide development programme by implementing round the clock drilling and has contracted an additional RC drilling rig that is expected to be on site by mid July 2011. In addition, Bellzone has purchased three new DD rigs which are expected to be operating within two months.

Kalia II detritals hold exciting potential due to the large area and easy access. An initial 700 hole, 28,000 metre drilling campaign is underway which the Company expects will provide sufficient data to delineate an inferred resource. Early results from Kalia II are encouraging with detrital oxides present at depths of over 30 metres. Geological assessment indicates the detritals are potentially amenable to upgrade. Stage 2 of the drilling campaign on the Kalia II detrital oxide target will commence in Q4.

Nik Zuks, Chief Executive Officer commented: "This is another significant value adding milestone for Bellzone. The proven ability to upgrade the Kalia oxides overlaying the magnetite resource to produce a consistent quality oxide product effectively provides Bellzone revenue from the stripping activities needed for our 3.74 billion tonne JORC compliant magnetite resource.

This initial oxide resource has been achieved over a very small portion of the mapped oxide potential at Kalia. The oxide resource defined to date and the estimated additional 600mt identified through the Stage 1 drilling on portion of the Kalia II target, clearly illustrates that the Kalia Mine Project has the capacity to deliver large quantities of consistent quality oxide and magnetite product to the market.

This, along with our fully financed infrastructure solution and January 2012 production from the fully funded Forécariah JV, sets Bellzone apart from other projects under development."

CSA Global UK, the independent geologists have established and certified the Company's first stage JORC complaint oxide resource for Kalia.

Resource classification was based on a number of criteria, including grade interpolation parameters, geology continuity, Reverse circulation samples, survey and bulk density data, the drilling grid and metallurgical beneficiation test work. The JORC resource is based upon an 111 million tonne @ 38% Fe in ground material that has been subjected to standard beneficiation methods that remove the waste material to produce a marketable commodity. The metallurgical test work confirms the resource is upgradable to a quality iron product of 58% Fe.

The mineral resource information disclosed in this announcement has been reviewed by Malcolm Titley (MAusIMM), a Director and Principal Consultant of CSA Global. Malcolm is a member of the Australasian Institute of Mining and Metallurgy and is qualified as a Competent Person in terms of the "Australasian Code for Reporting of Exploration Results, Mineral resources and Ore Reserves (JORC Code 2004 Edition). Malcolm has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Qualified Person for the purposes of this announcement.

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.

The Company's flagship project, the Kalia Mine Project has a JORC resource of 3.74 billion tonnes, located on the Kalia I prospect. Drilling results and internal estimates indicate that the Kalia Prospect has the potential to host more than 10 billion tonnes of magnetite and over 2 billion tonnes of oxide at surface.

In addition to the Kalia iron mine, an exploration and development programme is currently underway at the China International Fund ('CIF') held Forécariah iron permits that lie between 60 and 80 kms from the Guinea coast. Bellzone and CIF are jointly developing these permits which are prospective for oxide and magnetite. The development plan is designed to support an initial production target rate of 3-4 mtpa of direct shipping ore ('DSO') in Q1 2012 ramping up to a target rate of 10 mtpa by 2013.

Bellzone is committed to the staged development of the Kalia Iron Project, which includes a 50mtpa iron ore facility, rail and port, with initial production scheduled in 2014. Stage one is planned to bring a 20mtpa oxide online in 2014 and a 10mtpa magnetite concentrator in 2015. Stage two increasing the oxide output to 30mtpa in 2017 and doubling the concentrate capacity to 20mtpa by 2018

Bellzone signed an Infrastructure Accord with the Republic of Guinea giving the Company exclusive rights to the designated port and rail areas for purposes of conducting studies for the development of the infrastructure leading to the signing of a convention and concession. The infrastructure forms a key part of the Guinea Government's infrastructure strategy and will support the development of iron ore, bauxite and other minerals in Guinea through its availability for 3rd party use.

On 2 August 2010, Bellzone signed definitive agreements with China International Fund Limited ('CIF'). CIF will finance and develop the rail and port infrastructure and offer a finance package to Bellzone for the development of the Kalia Mine in exchange for the first right to purchase 100% of the off‐take of the Kalia Mine at market price.

Bellzone has competed an intensive mapping and surface sampling programme and has defined highly prospective drilling targets at its Sadeka Nickel/Copper Project and has commenced a drilling programme on these targets.