Finalisation of $417m Secured Loan Facility

4th February 2011

African Minerals Limited

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

Finalisation of $417m Secured Loan Facility

African Minerals Limited (AIM: AMI), the iron ore project development company that is developing the Tonkolili project in Sierra Leone, West Africa, is pleased to announce that it has finalised the Secured Loan Facility agreement, with final commitments amounting to $417.7m. This facility will allow the Company to fund completely Phase 1 of the Tonkolili project, taking it through to first production, expected in Q4 2011.

The material terms of the facility are contained in the Company's press release of 8 December 2010. Funding is expected to occur on or around the week commencing 14th February 2011 upon satisfaction by the Company of certain conditions precedent.

As at the end of December 2010, the Company had a cash balance of $372m and had spent $380m of the c$1100m estimated cost of completing of Phase 1 of the project, leaving approximately $720m remaining to be incurred. This new secured loan facility, together with the year end cash position and the subsequent receipt of $46m from CRM, provides pro forma available funds of $836m.

Executive Chairman, Frank Timis, commented:

"We are pleased to have secured the funding necessary for African Minerals to complete Phase 1 of the Tonkolili Iron Ore Project. The $770m of funds raised through the recent equity and debt issues underline a growing investor confidence in the prospects for both African Minerals Limited and for the country, the people and the government of Sierra Leone."

Contacts:

African Minerals Limited +44 20 7104 2280

Mike Jones

Canaccord Genuity Limited +44 20 7050 6500

Robert Finlay / Guy Blakeney

Aura Financial +44 20 7321 0000

Michael Oke / Andy Mills