Update re closure of Secured Loan Facility

22 December 2010

African Minerals Limited

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

Phase 1 Update regarding closure of Secured Loan Facility

African Minerals Limited (AIM: AMI or "the Company"), the iron ore project development company that is developing the Tonkolili project in Sierra Leone, West Africa, is pleased to provide further information regarding the completion of its Secured Loan Facility.

Further to its press release of 8 December 2010, which contemplated completion "on or around 31 December 2010", the Company and the lead arranger, Sprott Resource Lending, have agreed that completion will now occur in January 2011.

The Company is pleased to report that all commitments received to date for the Secured Loan Facility remain in place, and documentation regarding the loan arrangements continues to be prepared based on the previously announced terms. Further announcements will be made in due course.

Contacts

African Minerals Limited +44 20 7104 2280

Alan Watling / Miguel Perry

Canaccord Genuity Limited +44 20 7050 6500

Robert Finlay / Guy Blakeney

Pelham Bell Pottinger Public Relations +44 20 7861 3232

Klara Kaczmarek / Philippe Polman