AIOG and SOGUIPAMI Form JV for 51% Ownership of Simandou South Infrastructure Company SPV Simfer

CONAKRY, Guinea, GENEVA and LONDON, May 25, 2012 /PRNewswire/ --

African Iron Ore Group Limited ("AIOG" or the "Company") and Société Guinéenne du Patrimoine Minier ("SOGUIPAMI"), the Government of the Republic of Guinea's investment vehicle, are pleased to announce their agreement to form a joint venture company, Infrastructures Minières de Guinée Holdings (BVI) Ltd ("IMG"). This follows their earlier agreement announced on 5 December 2011. SOGUIPAMI will own 60% and AIOG will own 40% of IMG.

SOGUIPAMI and AIOG will work together within the framework of IMG in the development and the financing of infrastructure for the Simandou iron ore mining project.

IMG is the joint venture company that will own the Government of Guinea's 51% interest in SPV Simfer, the special purpose vehicle that will build, operate and own the associated infrastructure, including the railway and deep-water port, for the Simandou South iron ore mining project. Rio Tinto, Chalco and the International Finance Corporation will each have interests in the remaining 49% of SPV Simfer. Each of the shareholders in SPV Simfer will be expected to fund the cost of the infrastructure pro-rata to their shareholding.

The formation of IMG will now enable the detailed negotiations on SPV Simfer to start between IMG, representing the Government of Guinea, and Rio Tinto, Chalco and the International Finance Corporation.

Commenting on this announcement, Ethelbert Cooper, founder and Chairman of AIOG, said: "This is an important milestone in the development of the infrastructure required to monetize the value in the Simandou South iron ore deposit.  With production targeted for mid-2015, the infrastructure development program needs to be fast-tracked. We believe we have the expertise, the relationships and the "best in breed" Chinese partners required to assist with the funding and development of the infrastructure required for Simandou South."

Speaking on behalf of the Government of Guinea, Mr Mohamed Lamine Fofana, the Minister of Mines and Geology of the Republic of Guinea and Chairman of IMG, said: "We are pleased to announce the agreement to form IMG, the joint venture company, with our partner AIOG who we have chosen to assist the Government with the development and the financing of infrastructure for the Simandou South iron ore mining project. The formation of IMG will signal the start of negotiations on SPV Simfer and the infrastructure required to support the Simandou South mining project. The construction of a trans-Guinean railway and deep water port is of critical importance to the country as we seek to maximise our large iron ore resources for the benefit of the nation as a whole."

The Board of IMG will comprise:

1. Mr Mohamed Lamine Fofana, the Minister of Mines and Geology of the Republic of Guinea and Chairman of IMG
2. Mr Ethelbert Cooper, Chairman of AIOG, and Vice Chairman of IMG
3. Mr Abdoulaye Yero Balde, 1st Vice Governor of Banque Centrale de La République de Guinée
4. Dr Ahmed Kante, Administrateur Général de SOGUIPAMI
5. Mr Mamadi Conde, Administrateur Général des Grands Projets
6. Mrs Bountouraby Yattara, National Director du Patrimoine de l'Etat et des Investissement Privés
7. Mr Ousmane Kane, Deputy Chairman of AIOG
8. Mr Ewen Wigley, Head of Corporate Development at AIOG
9. Mr Babacar Ndiaye, Non-Executive Director of IMIC plc and IMIC's designee

For further information, please visit http://www.aiog.com.