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1 ASX Announcement 9 August 2011 AFRICAN IRON INCREASES CONGO LANDHOLDING EXPOSURE BY 94% TO 1,944km 2 African Iron has secured an 85% interest in a 944km 2 Authority to Prospect in the Republic of Congo. The Authority to Prospect is at the northern extension of the Company s Mayoko- Lekoumou Exploration Permit, which hosts the Mayoko iron ore project. Artisanal blacksmith workings exist within the previously unexplored Authority to Prospect and are generally indicative of the presence of DSO type material. A comprehensive prospecting program has commenced, which includes an airborne magnetic and radiometric survey. Pursuant to the Congo Mining Code, African Iron has priority in converting the Authority to Prospect to an Exploration Permit. Australian based iron ore development company, African Iron Limited (ASX: AKI) ( African Iron or the Company ) is pleased to announce that it has secured, through a new 85% owned Congolese subsidiary, an Authority to Prospect for iron ore in the Republic of Congo, West Africa ( Ngoubou-Ngoubou or Ngoubou-Ngoubou Permit ) (refer Figure 1). Ngoubou-Ngoubou has an area of 944km 2 and is the northern extension of the Company s 80% owned Mayoko-Lekoumou Exploration Permit, which hosts the Mayoko iron ore project ( Mayoko or Mayoko Project ) (refer Figure 1). The Ngoubou-Ngoubou Permit is held by African Iron through a Bermuda domiciled holding company and a local Congolese company, African Iron Exploration SA (refer Figure 2). African Iron recently upgraded its aggregate exploration target size at Mayoko to billion tonnes at 30-65% Fe 1 after completing an airborne magnetic survey over the balance of the 1000km 2 Mayoko-Lekoumou Exploration Permit ( Airborne Survey ) (refer to ASX Announcement dated 6 July 2011). Ngoubou-Ngoubou represents the northern extension of several new geophysical targets that were defined in the Airborne Survey. The Ngoubou-Ngoubou Permit lies within the Archaean Massif du Chaillu, a granitegreenstone terrane that hosts a number of large Banded Iron Formation ( BIF ) deposits, including Mayoko and Zanaga. The magnetite BIFs generally have a capping of enriched supergene ore, where the magnetite has been weathered to hematite and silica has been leached from the upper profile. These ironstone hats were exploited by tribal blacksmiths in pre-colonial times. Initial reconnaissance fieldwork on the previously unexplored Ngoubou-Ngoubou Permit has found pre-colonial artisanal ironstone workings at Mount Madona, approximately 10km northwest of the main village of Moungoundou and at Mount Mounanga, 2km northeast of Poungou village (refer Figure 3). These artisanal workings are generally indicative of the 1 The estimates of exploration target sizes mentioned in this announcement should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimate of exploration target sizes are conceptual in nature and there has been insufficient exploration completed to date to determine the quantity and grade, and estimate a Mineral Resource in accordance with JORC Code (2004) guidelines. Furthermore, it is uncertain if future exploration will result in the determination of a Mineral Resource. ASX: AKI AFRICAN IRON LIMITED ABN: Level 1, 2 Ord Street, West Perth WA 6005 P: F:

2 presence of DSO-like material. Outcrop in the area is scarce, but magnetic soil is widespread and BIF fragments have been observed at the base of the 860m high Mount Madiadia. The Company has commenced a substantial prospecting campaign, which will include an airborne magnetic and radiometric survey. Once the initial prospecting is complete, African Iron will convert the Authority to Prospect into an exclusive Exploration Permit. Pursuant to the Congo Mining Code, African Iron has priority in converting the Authority to Prospect into an exclusive Exploration Permit. Yours faithfully African Iron Limited G V Ariti Acting Chief Executive Officer Competent Person Statement The information in this Release that relates to Exploration Results and Mineral Resources is based on information reviewed and compiled by Mr Patrick Vekemans, who is a Member of the Australian Institute of Geosciences. Mr Vekemans is a contractor to African Iron Limited and has sufficient experience which is relevant to the style of mineralisation and the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Vekemans consents to the inclusion in the Release of this information in the form and context in which it appears. For more information contact: Joe Ariti Acting Chief Executive Officer Tel: Australian Enquiries David Tasker Professional Public Relations Tel: / +61 (0) UK Enquiries Emily Fenton / Jos Simson Tavistock Communications Tel: +44 (0) / +44 (0) ASX: AKI Page 2 of 5

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4 Figure 3 : Artisanal pits at Mount Madona and Mount Mounanga ASX: AKI Page 4 of 5

5 ABOUT AFRICAN IRON LIMITED African Iron Limited (ASX: AKI) is an Australian listed and domiciled iron ore development company working on the exploration and evaluation of its 80% owned Mayoko Iron Ore Project, located in the Republic of Congo ( RoC ) in central West Africa ( Mayoko Project or Mayoko ). The RoC is a stable, single party dominant republic in central West Africa (and should not be confused with the volatile Democratic Republic of Congo). The current government has been in power for more than ten years and was re-elected for an additional term of seven years following peaceful elections in Mayoko is located in the Niari Prefecture approximately 300kms north-east of Pointe-Noire. The Mayoko Project represents a near term development opportunity in an emerging iron ore province in central West Africa. Unlike other iron ore projects in the region, it has excellent infrastructure endowment with a nearby underutilised, heavy haulage mineral railway passing within 2km of the main prospect at Mt Lekoumou and terminating at the port of Pointe-Noire on the Atlantic Ocean. Mayoko has an oxide cap comprising potential direct shipping hematite and enriched banded iron formation, with underlying magnetite iron mineralisation. There is an existing Inferred Mineral Resource of 33Mt at 56% Fe of supergene direct shipping hematite based on shallow drilling completed in by earlier explorers. The Company s objective is to develop an initial 5Mtpa DSO operation at Mayoko by mid leveraging off the project s proximity to existing rail and port infrastructure. Competent Person Statement The information in this Release that relates to Exploration Results and Mineral Resources is based on information reviewed and compiled by Mr Patrick Vekemans, who is a Member of the Australian Institute of Geosciences. Mr Vekemans is a contractor to African Iron Limited and has sufficient experience which is relevant to the style of mineralisation and the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Vekemans consents to the inclusion in the Release of this information in the form and context in which it appears. ASX: AKI Page 5 of 5