Update on $1.5bn Shandong Iron & Steel Investment

For immediate release

15 September 2010

African Minerals Limited

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

Update on $1.5bn Shandong Iron & Steel Group Investment

African Minerals Limited (AIM:AMI), the iron ore project development company that is developing the Tonkolili project in Sierra Leone, West Africa, announces that, further to its press release of 13 July 2010, due diligence by Shandong Iron & Steel Group Co Limited ("Shandong") is progressing well, albeit somewhat slower than planned due to the logistical issues of coordinating the due diligence process between China, Europe and Sierra Leone, the extent of due diligence required given the size of the ore body and the fact that large teams of both internal and independent experts from a number of technical disciplines have been visiting the project to undertake due diligence on the rail and port infrastructure and on the mine at Tonkolili.

Both parties continue to work towards the completion of the transaction and are currently completing negotiations regarding a small number of amendments to the Memorandum of Understanding for Shandong's $1.5bn investment in the Tonkolili project and the long term iron ore off-take agreement, including revisions to the expected timing of signing and completion. The Company will provide a further update shortly.

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