Bellzone Mining Regulatory News (BZM)

18 August 2014

Bellzone Mining plc

("Bellzone" or "the Company")

Short term finance update

The Company announces that it has entered into an agreement with China Sonangol International (S) Pte Ltd ("China Sonangol") pursuant to which China Sonangol has agreed to provide short-term finance to the Company ("the Loan") of up to US$4 million.

Under the terms of the Loan:

· The Company expects to initially draw down US$750,000, which is expected to provide the Company with sufficient working capital to continue operations until late August 2014;

· The drawdown of the remaining U$3,250,000 is subject to the satisfaction of certain further conditions, which include completion of the transfer of Bellzone Holdings SA (the holder of the Kalia Mining Permit and a wholly-owned Jersey subsidiary of the Company) to OTN Mining Limited (a wholly-owned subsidiary of the Company), which requires the receipt of the requisite governmental approvals. The transfer simplifies corporate transactions at the asset level and does not constitute a change of control of the asset;

· The further US$3,250,000, is expected to provide the Company with sufficient working capital to continue operations until late October 2014. Although the Board is confident that such further conditions will be satisfied, there can be no certainty that such conditions will be satisfied;

· Interest is payable monthly in arrears at the percentage rate per annum which is the aggregate of five (5) per cent and 3-month LIBOR;

· The Loan, together with all amounts payable in respect thereof, is repayable in full on or before 14 December 2014;

· The Loan is secured by the entire issued share capital of Bellzone Holdings SA, Sadeka SARL (holder of the Sadeka Exploration Permit), OTN Mining Limited and Coastal Iron Development Limited (holder of Bellzone's interest in the Forécariah JV), each of which is a wholly-owned subsidiary of the Company; and

· China Sonangol will be able to enforce the security if Bellzone defaults on the terms of the Loan.

China Sonangol will release its security upon repayment of the Loan (and all amounts payable in respect thereof). Bellzone has expressly preserved the right to seek alternative sources of financing and to use any funds so obtained to effect a repayment and the release of the security.

The Loan enables the Company to continue to pursue its discussions with other prospective providers of financing, including for bridge funding, which would enable the Company to further progress development work and fund associated working capital while the Kalia project financing is finalised. There can be no certainty that any such financing will be obtained, nor as to the terms of any such financing, however, the directors continue to work vigorously to secure the funding solutions.

Under the AIM Rules, as a result of its 29.9 per cent. shareholding in the Company, China Sonangol is a related party of Bellzone. The Directors consider, having consulted with Bellzone's Nominated Adviser, Investec Bank plc, that the terms of the Loan are fair and reasonable insofar as the shareholders of Bellzone are concerned.

Enquiries:

Bellzone Mining plc

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

Investec Bank plc

Nominated Advisor and Broker

Chris Sim / George Price / Jeremy Ellis +44 (0) 20 7597 5970

Bell Pottinger

Financial Public and Investor Relations

Daniel Thole +44 (0) 20 3772 2500