TIDMAMI

RNS Number : 9668E

African Minerals Ltd

16 February 2015

16 February 2015

African Minerals Limited

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

Directorate Change

African Minerals Limited, the developer, operator and 75% owner of the Tonkolili Iron Ore Project (the "Project") in Sierra Leone, today announces that on 13 February 2015, Alan Watling resigned as Chief Executive Officer and Director of the Company effective immediately.

Over the last 6 months, since he came on board once again at the request of both African Minerals and its minority partner, Shandong Iron and Steel Group ("SISG"), Alan has successfully delivered all operational targets that were expected. He ramped up production to 9 vessels a month, even during the wet season, successfully reduced costs, and at least partially addressed the impasse that had been reached with SISG. During this time, AML also continued to protect its Ebola protocols such that the incidence rate at the project was still zero.

By the middle of Q4, and the start of the dry season, AML and the Tonkolili Iron Ore Project were on track to achieve the forecast exports for the year towards the top of the expected 16-18Mt range, had demonstrated a robust plan to reduce costs to around $25/t in 2015 with production expected to be circa 22Mt, and had delineated the long term planning for the production of high grade concentrate. However, these plans required the release of the additional funds still held at the asset level, which SISG did not authorise, despite initial commitment to do so. This lack of funds, the continued weakness in the iron price, and the challenges caused by Ebola resulted in the Project companies entering into care and maintenance, and the Company's shares being suspended.

The Board thanks Alan for his considerable contribution to the Company over the transformational yet difficult last six months.

In the current circumstances the Board do not consider it appropriate to appoint a replacement CEO, and will consider this and the Board structure further once there is a clear path to recommencement of operations.

Alan Watling, outgoing CEO, stated:

"What this team has continued to achieve, building by far the largest iron ore project in West Africa in under 4 years, against overwhelming odds, has been truly remarkable. That team is now largely sitting on the side lines waiting, I hope, for the current situation to become resolved. The livelihoods of tens of thousands of decent hard working people, both Sierra Leonean and international, employees and contractors, depend greatly on the success of these projects.

I know that the Chairman and the Board of the Company have worked relentlessly, and will continue to do so, to extract the best value possible for all of the stakeholders as they seek to resolve the current situation. This is now out of my hands; our operations are in care and maintenance, our employees are safe, and I feel I have lost the respect of - and for - our partners. In these circumstances I feel I have done all I can and am left with no option other than to resign."

Executive Chairman, Frank Timis, commented:

"It has been a privilege to have been able to work with Alan once more, and especially over the last six months, and we are sorry to see him leave although we fully understand his position. We are extremely grateful for all that he has done for the Company, and we wish him well in the future."

Contacts:

African Minerals Limited

+44 20 3435 7600

Matthew Hird / Francis O'Neill

Tavistock

+44 20 7920 3150

Jos Simson / Nuala Gallagher / Mike Bartlett

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. In 2013, African Minerals completed sales of 12.1Mt to its customers.

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

This information is provided by RNS

The company news service from the London Stock Exchange

END

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