Receipt of SISG funds and Secured Loan repayment

2 April 2012

African Minerals Limited ("AML" or "the Company") receives $1.5Bn cash consideration from Shandong Iron & Steel Group Co., Ltd ("SISG") and repays $417m Secured Loan.

African Minerals confirms receipt in full of the expected $1.5 billion cash consideration ("the Consideration") from SISG further to the Company's announcement of 30 March 2012, whereby SISG acquired a 25% shareholding in the mine, rail and port and power subsidiaries comprising the AML Tonkolili iron ore project in Sierra Leone ("the Transaction").

The Company also confirms that it has today transferred from the Consideration $417.7m to Standard Bank in settlement of the Secured Loan Facility and $65.2m in interest and other charges to AML. The $1,017.1m remainder of the Consideration will be available for use by the project companies, and will principally be used to accelerate the development of Phase II, and the expansion and further development of the Tonkolili project.

The Company is also pleased to confirm the appointment today of Mr Cui, Vice President of SISG, as a Director of AML following his previously announced nomination upon the completion of the Transaction.

There is no information in relation to Mr. Cui's appointment required pursuant to Schedule 2 paragraph (g) of the AIM rules for Companies other than as follows:

Mr Cui holds the following directorships: Shandong Iron & Steel Group Mining Co., Ltd; Shandong Steel International Investment Limited; Shandong Steel Hong Kong Resources Limited; Shandong Ocean Investment Co., Ltd

Contacts:

African Minerals Limited

+44 20 3435 7600

Mike Jones

www.african-minerals.com

Aura Financial

+44 20 7321 0000

Michael Oke / Andy Mills

Deutsche Bank

+44 207 545 8000

Rupert Green

An analyst and investor tele-conference is scheduled for 1.00 pm BST on Monday, April 2 2012.

Dial in details are: Tel: +44 (0)203 140 0668, Passcode: 349 862 #

Playback dial in details: Tel: +44 (0) 203 140 0698, Passcode: 383 890 #

About African Minerals:

African Minerals is developing its Tonkolili iron ore 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 3 phases. Phase I is expected to produce 20 million tonnes of iron ore per annum at full capacity.

Phase II now contemplates a 30Mtpa expansion, taking production to 50Mtpa, and the establishment of an expanded port facility at Tagrin Point, a new standard gauge, heavy haul railway from Tonkolili to Tagrin Point, and an expanded production facility at the mine to produce a 64% high grade hematite concentrate. African Minerals and its contractors currently employ approximately 9,700 people in Sierra Leone, 82% of whom are Sierra Leonean nationals.

The Company has also developed significant port and rail infrastructure to support the operation of the project, via its subsidiary African Railway and Port Services (SL) Limited ("ARPS"), in which the Government of Sierra Leone ("GoSL") has the right to a 10% free carried interest. The Tonkolili project companies are owned 75% by AML, and 25% by SISG. However, once the Government exercises its right, above, ARPS, will be owned 65% by AML, 25% by SISG and 10% by the Government of Sierra Leone.

About SISG:

Shandong Iron & Steel Group Co., Ltd (SISG) is one of the world's largest iron and steel groups specialising in the smelting, processing and the sale of steel and related commodities. It currently produces circa 25Mtpa of steel, and plans to increase its steel ouptut to circa 40Mtpa by 2015.