Bellzone Mining Regulatory News (BZM)

30 June 2014

Bellzone Mining plc

("Bellzone" or "the Company")

Results for the year ended 31 December 2013

Bellzone Mining plc (AIM: BZM) announces its results for the year ended 31 December 2013.

Key points

· Bankable Feasibility Study and maiden JORC reserve statement published on Bellzone's Kalia Project

- 7 mtpa full year production of 58% fines

- Total capital cost of US$865 million

- Free on Board ("FOB") cost of US$34.38 / tonne, amongst lowest cost iron ore projects globally

· Appointment of Investec as joint and subsequently sole broker

· Appointment of Macquarie as adviser on funding and strategic options for Phase 1 of the Kalia Project

· Publication of the Forécariah JV ("FJV") maiden JORC resource statement

Post Period End

· Share placing with China Sonangol International (S) Pte Ltd raising net proceeds of approximately £1.1 million

· Cash as at 13 June 2014 was $1.48 million to fund activities until August 2014

Glenn Baldwin, Chief Executive Officer of Bellzone, commented: "Overall, 2013 was a key year for both Bellzone and for Guinea as a mining territory, with the release of Kalia's Bankable Feasibility Study and several key developments regarding the country's infrastructure.

In 2013 the Bankable Feasibility Study and maiden JORC reserve statement were released for our flagship Kalia project. I believe the study, compiled by leading international independent third party consultants, validated our long held belief that the project has robust economics, even in a low iron ore price environment. The Board believe that the capital and operating costs identified in the study justify advancing the construction of the project’s first phase. In addition, the project's strategic location between Simandou and the coast would allow Bellzone to take advantage of the investment framework agreement made between the Government of Guinea, Rio Tinto and Chinalco earlier this year, for the construction of rail and port infrastructure across the country. The development of Kalia precedes the proposed bulk materials infrastructure giving Bellzone the ability to leverage these for reduced costs and increased production, meaning that first mover advantage for Kalia should be significant.

Following the completion of the BFS, the Company has focused on securing funding for the Kalia project. Although we have not been immune to the delays in funding that have been seen across the iron ore sector this year, where prices have been under downward pressure, I am very pleased with the progress we have made with regards to funding Kalia. Provided that full funding is secured during 2014, we remain confident of iron ore exports in 2016.

In Guinea, we have continued to develop our relationships with key external stakeholders including all levels of government, local business and host communities. A key focus is to ensure that the commitments made to stakeholders are honoured and that we continue to maintain these relationships.

A key metric of the Company's success in host communities is its reporting on safety, health and environmental performance. Bellzone had no lost time injuries during the year indicating that the training and supervision practices of the Company with respect to the local employees and small number of expatriate staff was excellent. This is noteworthy given the inherent risks involved in operating drill rigs in rugged remote locations to provide outcomes to international standards.

We remain confident in the quality and potential of Kalia as a key resource globally, and will continue to build on the progress made to date."

A complete copy of the results for the year ended 31 December 2013 is available on the Company's website,

www.bellzone.com and should be read in conjunction with the above.

Enquiries:

Bellzone Mining plc

Peta Baldwin, Corporate Affairs +44 (0) 1534 513 500

Investec Securities

Nominated Advisor and Broker

Chris Sim / Jeremy Wrathall / Jeremy Ellis +44 (0) 207 597 5970

Bell Pottinger

Financial Public and Investor Relations

Daniel Thöle +44 (0) 207 861 3232

CHAIRMAN'S STATEMENT

The year in review to 31 December 2013 was filled with notable achievements but, most importantly, followed by a short-term funding agreement through a placement with one of our major shareholders, China Sonangol, to ensure the ability of the Company to meet its immediate obligations until August 2014 while our funding discussions regarding the Kalia project continue.

Over the past year, led by our Chief Executive Officer Glenn Baldwin, Bellzone is proud to have achieved the following results:

· release of the Kalia independent BFS;

· publication of the FJV maiden JORC statement;

· recalibrated market expectations for the Forécariah JV operation;

· release of the Kalia maiden JORC reserve statement;

· appointment of Investec as joint and subsequently sole broker; and

· appointment of Macquarie as adviser on funding and strategic options for Phase 1 of the Kalia Project.

Some of Bellzone's shareholders reacted negatively to the publication of the FJV production and shipping update. We saw this as a recalibration of market expectations. When Forécariah was invested in and built, the global economy was in a very different state. Changes have impacted on what Bellzone believes Forécariah can deliver, and under our responsibility to shareholders, the Company took the view that, even though the news would likely not be well received, it had a duty to tell shareholders. We will continue this undertaking in all our communications.

With regards to the Board, during 2013, Nik Zuks retired as an Executive Director in order to pursue other activities. Nik was instrumental in the formation of Bellzone and in getting the Company to the point it had reached at the time of his departure. He remains a respected major shareholder and we wish Nik all the very best for his future endeavours. We are committed to establishing a greater balance of Non-Executive Directors to complement the great work and commitment of the current Non-Executive Director Tony Gardner-Hillman, as well as our Executive members, Glenn Baldwin, Chief Executive Officer and Terry Larkan, Chief Financial Officer.

Bellzone remains committed to ongoing engagement with all its stakeholders, including its shareholders, and will continue to engage with them via transparent and detailed market communications.

Our major focus remains Kalia. Bellzone is not distancing itself from its investment as a shareholder in Forécariah but the Company has made no secret of the fact that the real value proposition for Bellzone shareholders lies in Kalia.

Our relationship with the Government of Guinea and Presidential office remains strong through our CEO, who travelled to Abu Dhabi in November 2013, at the express invitation of the President of Guinea, to speak at the "Guinea is Back" conference - and through the work of our in-country Bellzone employees, based in Conakry, who are in regular contact with the government and relevant departments.

Michael Farrow

Chairman

27 June 2014

Consolidated Statement of financial position at 31 december 2013

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

Consolidated Statement of Comprehensive Income For the year ended

31 December 2013

Consolidated Statement of CHANGES IN EQUITY For the year ended

31 December 2013

Consolidated Cash Flow Statement For the year ended 31 December 2013

The above consolidated cash flow statement should be read in conjunction with the accompanying notes.

Notes to the Financial Statements For the year ended 31 December 2013

1. corporate

Reporting Entity

The consolidated financial statements of Bellzone Mining plc ("the Company") for the year ended 31 December 2013 were authorised for issue in accordance with a resolution of the board of directors on 27 June 2014.

Bellzone Mining plc is a public company listed on AIM of the London Stock Exchange, and incorporated and registered in Jersey, Channel Islands. The Company's registered office is located at Channel House, Green Street, St Helier, Jersey JE2 4UH, Channel Islands. The consolidated financial statements of the Company as at and for the year ended 31 December 2013 comprise the Company and its subsidiaries (together referred to as the "Group").

The nature of the principal activities of the Group is described in the Directors' Report. The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied unless otherwise stated.

Basis of preparation

a. Statement of compliance

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted for use in the European Union.

b. Early adoption of standards

The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

c. Basis of measurement

The financial statements have been prepared on the historical cost basis except where indicated otherwise in the notes to the financial statements.

d. Functional and presentation currency

The functional currency of the Company and all of its subsidiaries is the United States Dollar ("US Dollar"), which is the currency of the primary economic environment in which the entities operate. All amounts are expressed in US Dollar and all values are rounded to the nearest thousand ($000) unless otherwise stated.

e. Going concern

The audited results for the year reflect the current nature of the Group's activities being mineral exploration and project development.

The current nature of the Group's activities does not provide the Group with production or trading revenues. The cash available will see activities through to August 2014, at which point the Group will require additional sources of external funding to enable it to continue to meet its liabilities as and when they fall due.

The Group has historically met its working capital requirements by raising the required capital through the placing of shares with investors. The Company has raised US$329 million, after costs, since incorporation, including approximately £1.1 million (net) raised on 4 June 2014 through the issue of 51,321,263 new ordinary shares of no par value at a price of 2.5p per share with China Sonangol International (S) Pte Ltd ("China Sonangol"), pursuant to which China Sonangol agreed to either procure (as agent for the Company) placees for the Placing Shares or otherwise itself subscribe for the Placing Shares.

The proceeds of the Placing have provided sufficient funds for Bellzone to continue operations until August 2014, while it continues with the funding process for Kalia. The Group is in discussions to secure funding that would enable it to both continue operations for the short term, and in the long term to develop the Kalia project; however, at present there are no committed funds beyond August 2014.

Should the completion of the Kalia funding process extend beyond August 2014, or fail to be satisfactorily completed, at that point additional immediate funding will be needed to continue operations from one or more of the following sources:

• the placement of further securities;

• loan funds secured against assets of the Group;

• the sale of assets; and/or

• funding in exchange for an interest in the Group's projects or future production from the projects.

While the Directors believe that the Group will obtain sufficient funding from one or more of these funding opportunities, the Directors have concluded that the lack of committed funds represent a material uncertainty that may cast significant doubt upon the Company's ability to continue as a going concern, and therefore the Group and Company may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.

The Directors have concluded that the lack of committed funds represent a material uncertainty that casts significant doubt upon the Company's ability to continue as a going concern and therefore the Group and Company may be unable to realise its assets and discharge its liabilities in the normal course of business.

Nevertheless, after considering the uncertainties mentioned above, and based on the progress of discussions with various potential sources of finance, the Directors have a reasonable expectation that the Group will be able to obtain additional funding which will provide the Group with sufficient resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the Consolidated Financial Statements.

2. Property, plant and equipment

Notes to the Financial Statements For the year ended 31 December 2013

Continued

3. Mineral properties in the exploration and evaluation phase

The values relate to the mineral properties in the exploration and evaluation phase and are based on the cost of acquiring 100% of the companies holding the Kalia, Faranah and Sadeka exploration permits. The Agreement with CIF of 2 August 2010 required certain actions to be fulfilled for the transfer of 50% of the defined Kalia II area (part of the Kalia permit) and 100% of the Faranah permit to be transferred to CIF. The prerequisite actions have not occurred and the transfers have not taken place. The permitted areas remain 100% owned by Bellzone through the relevant subsidiaries. In addition to the costs of acquiring the exploration permits through the acquisition of the subsidiaries, the statutory fees paid on the issue of the Mining Concessions (Permits) for the Kalia and Faranah areas are included.

4. Investment accounted for using the equity method

The Company has a 50% interest in a joint venture entity, FHPL which is accounted for using the equity method. The long term receivable relates to expenditure incurred on behalf of, assets acquired for and cash advanced to FHPL in respect of the Joint Venture.

The limited JORC defined resources and unknown exploration potential do not permit the definition of a production profile and life of mine plan that result in either an economic return on the investment or the repayment of the receivable. Accordingly, the investment and the receivable have been fully impaired.

Consideration was given to retaining some value that could be attributed to the infrastructure assets. The status of the permits and the absence of alternative users of the infrastructure, which may derive an income, resulted in no change to the impairment decision.

Further resource definition and production profiling may result in a reversal of the impairment in future periods.

Notes to the Financial Statements For the year ended 31 December 2013

Continued

5. Issued capital

The Company is a no par value company. No share issued by the Company shall have a par value.

There is no limit on the number of shares which may be issued by the Company and if the share capital structure of the Company is at any time divided into separate classes of share there is no limit on the number of shares of any class which may be issued by the Company.

Subject to the provisions of the Companies Law and the Articles of the Company and without prejudice to any rights attached to any existing shares or class of shares, any share may be issued with such rights or restrictions as the Company may by ordinary resolution determine or, subject to and in default of such determination, as the Board shall determine.

The Company may, pursuant to the Companies Law, issue fractions of shares and any such fractional shares shall rank pari passu in all respects with other shares of the same class issued by the Company.

The Company shall maintain a stated capital account in accordance with the Companies Law for each class of issued share. A stated capital account may be expressed in any currency determined by the Board from time to time.

Ordinary shares have no par value, carry one vote per share and carry the right to dividends. All shares have been fully paid. Refer to note 6b(ii) below for details of treasury shares and own shares held.

The Group is in a project development stage and did not declare or pay any dividends during the year (2012: nil).

Notes to the Financial Statements For the year ended 31 December 2013

Continued

5. Issued capital continued

6. Reserves

Notes to the Financial Statements For the year ended 31 December 2013

Continued

6. reserves continued

b. Nature and purpose of reserves

(i) Cumulative Translation adjustment

The Cumulative Translation adjustment arose in 2010 on the translation of assets and liabilities previously stated in Australian dollars to US dollars as a result of the change in functional currency and presentation currency. Assets and liabilities were translated from the previous presentation currency (Australian dollar) to the US dollar at the beginning of the comparative period using the opening exchange rate and retranslated at the closing rate. Income statement items were translated at the average rate for the respective periods. Stated capital was translated at the historic exchange rates prevailing on the date of the share issue. All resulting differences were reported in Cumulative Translation adjustment.

(ii) Treasury shares and own shares held

Total Treasury shares held had a cost of $3.392 million at 31 December 2013 (31 December 2012: $3.374 million) and constituted 5.1% (31 December 2012: 5.1%) of the Company's issued capital as at that date. At the reporting date, 27.7 million shares were held in the BESPT. Shares are distributed to employees as and when BESP awards vest, in line with the terms of the plan, under the administration of the independent trustees.

7. Events occurring after the reporting period

On 4 June 2014, Bellzone Mining plc executed a non-pre-emptive placing to raise approximately £1.1 million (net) through the issue of 51,321,263 new ordinary shares of no par value at a price of 2.5p per share with China Sonangol International (S) Pte Ltd ("China Sonangol") pursuant to which China Sonangol agreed to procure (as agent for the Company) placees for the Placing Shares or otherwise itself subscribe for the Placing Shares. The proceeds of the Placing are expected to provide Bellzone with sufficient funds to continue operations until early August 2014.

Notes to the Financial Statements For the year ended 31 December 2013

Continued

8. Reconciliation of loss after income tax to net cash inflow from operating activities