AMI African Min.

TIDMAMI

RNS Number : 1511G

African Minerals Ltd

27 February 2015

27 February 2015

African Minerals Limited

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

Transfer of $250m PXF Facility

Legal proceedings in Sierra Leone

African Minerals Limited, the developer, operator and 75% owner of the Tonkolili Iron Ore Project (the "Project") in Sierra Leone, has been notified today that the lenders of its $250m pre-export finance facility (the "PXF Facility") yesterday transferred their interests in the PXF Facility to Shandong Steel Hong Kong Zengli Limited (the "New Lender") a subsidiary of Shandong Iron and Steel Group ("SISG"). The New Lender has issued a demand for immediate repayment of all outstanding amounts under the PXF Facility, which is in default.

The Company has also been advised thatan interim injunction has been obtained by Shandong Steel Hong Kong Resources Ltd ("SSHK", a subsidiary of SISG), the 25% shareholder in the Project.

Transfer of $250m PXF Facility

The borrowers under the PXF Facility are Tonkolili Iron Ore (SL) Ltd, and African Railway & Port Services (SL) Ltd. The PXF Facility is guaranteed by AML, TIO Trading Ltd and two intermediate subsidiaries (Tonkolili Iron Ore Ltd and African Railway & Port Services Ltd) which hold the 75% shareholding in the borrowers. The PXF Facility is secured against certain assets of the borrowers and guarantors, including AML's shares in the two intermediate subsidiaries.

The PXF Facility has a capital amount outstanding of $166.7m, and has been in default since the end of November 2014 as previously announced. The borrowers and guarantors do not have sufficient funds available to make the payment demanded.

Interim injunction in Sierra Leone

On 26 February, the Company received by e-mail from SSHK an interim order of the High Court of Sierra Leone, issued on 23 February 2015, in relation to compliance with the shareholders agreements between AML (and subsidiaries) and SSHK. The document names the plaintiff as SSHK and the defendants as Tonkolili Iron Ore (SL) Ltd, African Railway & Port Services (SL) Ltd, African Power (SL) Ltd, AML and Frank Timis.

The order grants an interim injunction restraining the defendants from unilaterally taking any steps that will lead to the dissolution, liquidation, winding up or placing into administration of any of the defendant companies. The injunction continues until the hearing and determination of the application, with a hearing date of 2 March 2015.

The Company has not taken and has no current intention to take, any of the actions prohibited by the injunction. AML will take appropriate actions to comply with its obligations and to protect its rights under the shareholders agreements.

Discussions with SISG

The Company is continuing discussions with SISG regarding restructuring and refinancing of the jointly owned operating companies, which own the Project, and will seek clarification of SISG's intentions in relation to the PXF Facility and the repayment demand.

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.

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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