Confirmation of new financing arrangements

5 February 2013

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

New financing arrangements with Standard Bank of South Africa

- Establishment of $250m secured loan facility, structured to be capable of being increased to fund subsequent expansion to 35mtpa, subject to further approvals

- Establishment of corporate level revolving credit facility of $100m for general corporate purposes, replacing $100m amortising standby facility of which $80m is currently outstanding, providing $20m of additional liquidity

- Facilities, both arranged with Standard Bank, provide significant headroom and flexibility at corporate and operating levels

African Minerals Limited (AIM: AMI) is pleased to announce that Standard Bank of South Africa Limited ("Standard Bank") has informed the Company that final credit committee approval has been received for the establishment of two credit facilities as follows:

Secured Loan Facility: $250m secured loan facility, at the operating company level, to provide greater working capital flexibility during the project ramp up period. This facility is structured to allow it to be increased to fund further expansion of the project in due course, subject to additional credit committee approvals.

Revolving Credit Facility: $100m corporate level facility, replacing the existing $100m amortising standby facility (of which $80m remains outstanding), thus providing $20m of additional liquidity at the Group level.

Miguel Perry, CFO of African Minerals, commented:

"I am delighted to report that the facilities that we outlined in December have now been approved, and am especially pleased that Standard Bank continues to be a cornerstone lender. These facilities provide us with incremental financial flexibility through the project ramp up period, as well as a potential source of funding for the next phase of our expansion to 35 mtpa."

Contacts:

African Minerals Limited

+44 20 3435 7600

Mike Jones

FTI Consulting

+44 20 7831 3113

Billy Clegg / Ben Brewerton / Oliver Winters

Jefferies

44 20 7029 8000

Nick Adams / Thomas Rider

About African Minerals

African Minerals is developing its 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 expected to be achieved in Q2 2013.

The next stage of Project expansion now contemplates the production of up to 35Mtpa of 64% high grade hematite concentrate and the expansion of the current port facilities at Pepel, 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 a 10% free carried interest.

www.african-minerals.com

African Minerals Limited