Ausenco appointed Tonkolili Phase II FEED Engineer

17th February 2014

African Minerals Limited

("African Minerals", "AML", or "the Company")

Ausenco Limited appointed as Engineer for the Front End Engineering Design for Phase II of Tonkolili

African Minerals, the developer and operator of the Tonkolili iron ore mine in Sierra Leone, is pleased to announce the appointment by Tonkolili Iron Ore Limited (a subsidiary of AML) of Ausenco Limited ("Ausenco") as the engineer for the Front End Engineering Design ("FEED") for Phase II of its Tonkolili project, which will start to exploit the 1.1Bnt saprolite portion of the resource.

Ausenco will be responsible for assembling the results of the current on site pilot plant work that is being carried out by AML to establish flowsheet and design parameters for the first Phase II concentrator, which is expected to have a design output of up to 10Mtpa. The scope of the works will also include the raw water and tailings dam design and the power supply requirement.

The establishment of the flowsheet will allow the optimisation of mass yield and concentrate grade - key components in establishing capital schedules, operating costs, resource life, and also the expected revenue per tonne from this portion of Tonkolili's production. It is expected that these parameters, and those of the ancillary services including power, will be established in Q2 2014 such that the long lead time elements of equipment can be ordered in good time.

It is expected that earthworks for the construction of the concentrator will begin at the end of this year, once the 2014 wet season has ended, such that the concentrator will be in production in 2016. Initial expenditure for the construction of the concentrator and associated facilities will be funded from existing restricted funds of approximately $300m, with the balance sourced through project level debt finance.

Bernie Pryor, Chief Executive Officer of African Minerals, said:

"I am pleased to announce the appointment of Ausenco, who already has a long history and familiarity with our project. Together with the incremental infrastructure growth that we plan to achieve, the freezing of the optimum flowsheet will allow us to confidently embark on this next exciting phase of the development of the Tonkolili deposit, with a higher value product.

Contacts:

African Minerals Limited

+44 20 3435 7600

Mike Jones

Tavistock Communications

+44 20 7920 3150

John West / Jos Simson / Nuala Gallagher

Jefferies

44 20 7029 8000

Nick Adams / Alex Collins

About African Minerals

African Minerals operates the Tonkolili Iron Ore Project (the "Project") in Sierra Leone, with a JORC compliant resource of 12.8Bnt. The Project, which currently has a 60+ year mine-life, is being developed in a number of staged expansions. The current Project operations are expected to produce 20 million tonnes of iron ore per annum at full capacity, with this run-rate of production having first been achieved in June 2013.

The next stage of Project expansion, Phase II, now intends production to increase further and include the production of a high grade concentrate with the first concentrator plant expected to enter production in 2016.

The Company has also developed significant port and rail infrastructure to support the operation of the Project, via its subsidiary African Rail and Port Services (SL) Limited ("ARPS"), in which the Government of Sierra Leone ("GoSL") has a 10% free carried interest.

The Project companies are currently owned 75% by AML, and 25% by Shandong Iron and Steel Group ("SISG"), except for ARPS, which is currently owned 75% by AML and 25% by SISG, with the GoSL having the right to a 10% free carried interest from AML.

www.african-minerals.com

About Ausenco

Ausenco is a global, diversified engineering and project management company providing services in Minerals & Metals, Process Infrastructure, Environment & Sustainability and Oil & Gas, Power. It delivers new and better ways to add value to our clients' projects no matter how demanding and delivers results in some of the world's most challenging environments. Listed on the ASX in 2006, its growth strategy is focused on sector, solution and geographic expansion. It operates from 29 offices in 17 countries.