Update on Negotiations with Shandong Iron & Steel

For immediate release

1 June 2011

African Minerals Limited

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

Update on Negotiations with Shandong Iron & Steel Group

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 3 May 2011, discussions between the Company and Shandong Iron & Steel Group Co., Ltd have progressed well and the parties are currently in the process of finalising documentation.

The Company will provide further updates in due course.

Contacts:

African Minerals Limited +44 20 7104 2280

Mike Jones

Aura Financial +44 20 7321 0000

Michael Oke / Andy Mills 

Canaccord Genuity Limited +44 20 7050 6500

Robert Finlay / Guy Blakeney

Notes to Editors

African Minerals is developing the wholly owned 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 of the project is fully funded and at full capacity is expected to produce 12 million tonnes of iron ore per annum once it ramps up from initial production in Q4 2011. Phases II and III are expected to boost production incrementally by 23Mtpa and 45Mtpa respectively. African Minerals and its contractors currently employ approximately 3,600 people in Sierra Leone, 78% of whom are Sierra Leonean nationals.

The Company is also developing significant port and rail infrastructure to support the development of the project, via African Rail and Port Services ("ARPS"), with the Government of Sierra Leone as 10% partners.

African Minerals is registered in Bermuda and is listed on the AIM market of the London Stock Exchange.