London Mining Venture

London Mining is an expanding producer of high specification iron ore for the global steel   industry   and   is   focused  on   identifying,  developing and operating sustainable mines. London Mining commenced sales from the Marampa mine in Sierra Leone in 2012 and expects to reach production capacity of 5Mtpa in 2013. A prefeasibility study was completed in 2011 which shows that Marampa has resources to support a staged expansion to over 16Mtpa. London Mining has also completed bankable feasibility studies outlining plans for a further 20Mtpa of iron ore production by developing two other mines in Greenland and Saudi Arabia. In addition London Mining is producing from a coke operation with coking coal resource potential in Colombia. The Company listed on London AIM on 6 November 2009.

Wits Basin  owns  the  Bates-Hunter Gold  Mine  in  Central  City, Colorado. Discovery of gold at  the  Bates-Hunter  Mine in 1859 kicked off the Colorado gold rush and established Denver  as  a major American city. All mines in the area went dormant in 1936. This  mining district has historically produced more than 4 million ounces of gold. Twenty-five percent (25%) of all the gold mined came from the area immediately surrounding the Bates-Hunter mine. Wits Basin’s property controls the 15 principal veins underlying the mine

London Mining is pleased to announce that it has signed a letter of intent with Wits Basin Precious Minerals, Inc. (“Wits Basin“) which may result in London Mining becoming a 50/50 joint venture partner for Wits Basin’s iron ore project in Ma Anshan in the People’s Republic of China. The potential transaction remains subject to due diligence and finalisation of definitive legal documents.

London Mining At Marampa

London Mining  secured  an  option  to  acquire  the  mining  rights  at the Marampa mine  in  December  2005. After   securing   funding, London  Mining  was   able  to exercise the  option  in  January  2006  and   in  September  2006   the  Marampa mining  lease  was  assigned  to  LMC, a  100%  subsidiary  of  London Mining. The Marampa mine  recommenced production in December 2011.

London Mining (“London Mining”   or  the “Company”)  announces   that  China Global Mining Resources  Limited (“CGMR”), a  subsidiary  of  the  China  Global Mining  Resources  (BVI) Limited joint venture (“JV”) which is  held 50:50  with Wits Basin Precious Minerals Inc (“Wits Basin”), has received a claim   regarding  the  payment  of  the   deferred   consideration  for  the  purchase   of   the  Sudan processing plant.  The claim is to be determined through arbitration.  CGMR is in discussions with the sellers of  the  plant  regarding  this  claim  and  a  resolution (either by agreement of through arbitration) is  expected  in the  next  6 months.  The  Sellers  have  no  legal  or  commercial  recourse  to  London  Mining  or  any subsidiary other than the CGMR JV with respect to this claim.

Flooding are the most common form of natural disaster in the UK and are now part and parcel of the British winter months; widespread flooding happens at least once a year in the UK. Earlier this year, torrents of rain hit the UK, with Cumbria the worst-affected area; heavy, prolonged rainfall caused bridges and road networks to collapse and four people lost their lives. In 2007, Yorkshire was hit hard by floods and some people are still recovering from the destruction caused by the floods three years later; the floods killed six people and left hundreds of people homeless and thousands without electricity.

Flooding can come from various sources, from coastal waters, from rivers (also known as fluvial flooding) and surface water flooding. Of all these sources London is most vulnerable to surface water flooding. Heavy rainfall can swiftly overwhelm the drainage network, leading to flooding of low-lying areas.

London Mining

The London Mining Marampa mining licence covers an area of 13.82km2. As of December 2011 Snowden Mining Industry Consultants estimated the total JORC resource at Marampa to be 1,078Mt grading 31.2% Fe. These resources represent a  tenfold  increase  of  the historical primary resource of  84Mt  grading  37%  Fe reported at the time of London Mining’s admission to AIM in November 2009.

The resource contains around 40Mt of tailings and over 150Mt of weathered ore  which can  be  considered  in  the  lower  capital intensity  Phase 1.  The  balance  of  resources  will  be  considered  either  in  an  extended  Phase 1 operation which requires the installation of additional crushing and grinding capacity, or in Phase 2 which will consider an expansion to over 16Mtpa.

London Mining (“London Mining” or the “Company“)  announces  that China Global Mining Resources Limited (“CGMR“), a subsidiary of  the China Global  Mining  Resources (BVI)  Limited  joint venture (“JV”) which  is  held 50:50 with Wits Basin Precious Minerals Inc (“Wits Basin”), has received a claim regarding the payment of the deferred consideration for the purchase of the Sudan processing plant.  The claim is to be determined through arbitration.  CGMR is in discussions with the sellers of the plant regarding  this claim and a resolution (either by agreement of through arbitration) is expected in the next 6 months.  The Sellers have no legal or commercial recourse to London Mining or any subsidiary other than the CGMR JV with respect to this claim.

 

London Mining Staged Development Program

The current  Marampa  operation is processing  a combination of   tailing   from previous operations  and highly weathered in situ material. London Mining aim s to  expand  this  plant  to  achieve  a  production  rate of 5  Mtpa  of  premium  sinter concentrate by the end of 2013. Capital expenditure to install the initial 5 Mtpa  of capacity is expected to  be  USD  320m (USD64/annual tonne  of capacity) of which USD163m was spent to  achieve  first production. Initial production from the first of two  plants  has  commenced with  production  of 1.5 Mt expected  in 2012

A  second processing  plant  is to be commissioned in Q1  2013  resulting in installed  capacity  of  3.6  Mtpa  or  300 kt/month. Gravity circuits will   be added to  both plants which should result in installed capacity of 5Mtpa in Q3 2013. All logistics required  to  load ocean  going  vessels, including   the  haul  road,  river   port and   barging  operation  have   commissioned.  Further  investment  of   USD 250m will enable the  5Mtpa plant  to  process all ore types following  the exhaustion of the tailings resource in 2017. This would extend the mine life to over 30 years.

London Mining is a signatory of several initiatives to show our commitment to  becoming a   fully  sustainable  and responsible  company.These   initiatives enable the global community to monitor our performance and progress against internationally recognised best practice.By doing this, we align our operations with international  standards  and  industry  best  practice. It  also  helps  us  to continue  to  reassess  our  progress  and  track  our  path towards becoming a flagship company among our peers.

A value engineering process is underway which will include a further review of cost estimates for 9 Mtpa based on  alternative tailings disposal solutions  and use   of  contract  mining  which   could realise  potential  capital   expenditure savings  of  an   estimated  USD 140m. Other   scenarios    including  a   second expansion to over  16 Mtpa   and  further  investment  in   logistics including a deep water port and  use  of  pipeline  or  rail  transportation  are also  being considered.

Flooding are the most common form of natural disaster in the UK and are now part and parcel of the British winter months; widespread flooding happens at least once a year in the UK. Earlier this year, torrents of rain hit the UK, with Cumbria the worst-affected area; heavy, prolonged rainfall caused bridges and road networks to collapse and four people lost their lives. In 2007, Yorkshire was hit hard by floods and some people  are  still  recovering  from  the destruction caused by the floods three years later; the floods killed six people and left hundreds of people homeless and thousands without electricity.

London Mining Operations

Iron Ore Division Overview

London Mining has total  iron ore  resources  of  2.2  billion  tonnes  with targeted production of over 30Mtpa of high grade concentrates planned from its projects in Sierra Leone, Greenland and Saudi Arabia. London Mining strategy is to provide a viable alternative to the diversified miners and upstream integration by selecting assets with unique competitive advantages and high margin potential in countries with a national interest in mining. For example:

• Marampa (Sierra Leone) has a short lead time to production and is located in a region of significant geological potential
• Isua (Greenland) will produce a high quality magnetite concentrate
• Wadi Sawawin (Saudi Arabia) benefits from a low energy costs and a significant supply gap in the Middle East and North Africa region

London Mining is producing from its Marampa Mine in Sierra Leone and developing two other iron ore mines in Saudi Arabia and Greenland as well as a coking operation in Colombia.

Sustainability

As London Mining continue to develop our mining assets, we are ever more aware of how important sustainability is to our operations. It is at the heart of how we develop a lasting business, make a long term contribution and deliver value.

We are looking to the future and how we will live and work together with the communities and organisations around our operations now and in the years ahead. We recognise the importance of exploring fully all the options that will enable us to meet our long term responsibility for our resources and surroundings. This genuine commitment to sustainability is a key part of the way we will contribute, endure and prosper.

At London Mining we carefully manage the environmental, economic and social dimensions of our operations to ensure sustainable outcomes. Healthy environments provide the foundation for vital goods and services. Sustainable economics support future financial actions. Social sustainability reinforces the acceptability of our operations to local and global communities. We also focus on the health, safety and environment (“HSE”) aspect of our mining operations. We manage this as a separate area of sustainability as we recognise the importance and specific requirements of keeping our workforce safe and able to continue their daily tasks.

LONDON MINING IS FOCUSED ON IDENTIFYING, DEVELOPING AND OPERATING MINES TO BECOME A SIGNIFICANT PRODUCER OF IRON ORE.