Q2 2013 Production Report

29th July 2013

African Minerals Limited

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

Q2 2013 Production Report

Highlights

·; Quarterly production of 4.0Mt, up 81% from previous quarter

·; Quarterly sales of 3.4Mt, up 65% on previous quarter

·; Achievement of 20Mtpa export rate 18 June 2013

·; Average FOB received price of $70/t (dry), down 22% from $89/t in Q1

·; Average shipping rate of $18/t, an improvement of 5% from $19/t in Q1

·; Average cash costs in Q2 of $40/t, a reduction of 19% from $49/t in Q1

·; End of period stockpiles at the mine of 2.4Mt of product

·; Sales guidance unchanged at 13-15Mt in 2013 (with production of 15-18Mt)

Keith Calder, Chief Executive Officer, said:

"African Minerals is making good progress this year, with production levels and sales rising in line with our expectations, and momentum building with the attainment of our target 20Mtpa target export run rate, which we reached in June 2013. It is particularly encouraging that this progress is being made during a wet season at the port which is similar to the one we experienced last year.

We will continue to focus on stabilising this current phase of operation, and bringing down costs to around the targeted $30/t level. In common with many other miners, we are focussing in the short term on cost reduction and improvements in efficiency and utilisation, and substantially reducing corporate overheads.

The successful stabilisation of the Phase 1 project will provide us with the springboard for our next phase of expansion, upon which we expect to report further during Q4 2013."

Summary

Production

Mining capacity continued to grow, and 5.5Mt of material were moved in the period, a 67% increase over the previous quarter. Phase 1 DSO ore mined was 4.7Mt, an increase of 70% over the previous quarter, with the balance being lower grade ore and pre-mining of saprolitic ore to be processed during future operations.

With the completion of the ramp up of the large wet process plant following the modifications to the trommel, apron feeder, cyclones and screens towards the end of Q1, tonnages continued to grow in the quarter. Total processed tonnes were 4.4Mt, an increase of 75% over the previous quarter, while yield improved from 86% to 89%, resulting in production of 4.0Mt of saleable product, up 81% from the previous quarter.

Mined grade and processed grade showed improvement quarter on quarter.

End of quarter stockpiles at the mine were 2.4Mt of saleable product.

Costs

As a result of the continued improvement in production, estimated cash costs fell from $49/t in Q1 to $40/t average for the quarter.

The steady decrease in cost per tonne as sales continue to grow gives us confidence in achieving a c$30/t cash cost by year end at the targeted output rate.

Exports

With the commissioning of the large second wagon dumper at the end of April, throughput capability at the port increased significantly in the second half of Q2, resulting in the sailing of 10 Ocean Going Vessels ("OGVs") within 30 days between May 18th and June 16th, as per our announcement on 18th June 2013. A total of 20 OGVs were despatched during the second quarter.

Exported grade improved slightly from 57.9% Fe to 58.2% Fe, and moisture levels remained stable at around 11%.

The mine continues to stockpile fines material in support of the seasonal shipping strategy which will see fines being shipped in the coming dry season. However, exports for the remainder of this wet season will be a lump blend product, with concurrently produced lump being blended with stockpiled A32 product. Lump blend, as is the case with A32, attracts an additional $5/t discount compared to standard fines pricing.

Sales

In Q1 2013, 6 of the 12 vessels were delivered into the Shandong Iron and Steel Group Discounted Offtake Agreement ("DOTA"), and in Q2 2013 12 of the 20 vessels were delivered into the DOTA. At the end of H1, 3.13Mt have already been delivered into the 4.80Mt DOTA annual commitment.

The weighted average 58% IODEX Platts index price for the period was $116/t (dry), down from $125/t in the previous quarter. The achieved FOB price in Sierra Leone was $70/t (dry), down from $89/t in the previous quarter, as a combined result of the drop in the benchmark price, a higher proportion of sales into the DOTA, adjustments on final versus provisional invoicing and the additional discount associated with selling lump blend. The price quoted is before marketing fees in China.

Freight rates reduced in the period from an average of $19/t to $18/t.

Guidance

Guidance for sales is reiterated at 13-15Mt in 2013 (with production of 15-18Mt).

Interim Results

Interim results for the six months ended 30th June are expected to be published on 11th September 2013.

Contacts:

African Minerals Limited

+44 20 3435 7600

Mike Jones

FTI Consulting

+44 20 7831 3113

Ben Brewerton

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 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 the right to a 10% free carried interest from AML.

www.african-minerals.com