London Mining Objective

Objectives and strategy

London Mining’s objective is to identify, develop and operate scaleable mines to become a mid-tier supplier to the global steel industry. The Group’s principal assets have actual or anticipated production and the ability for further expansion through either upgrading resources or acquisition.

The Company is currently undertaking resource definition programmes to ensure that all of these

principal projects will have JORC standard resources in accordance with the timeframes set out in this document. The Directors believe that the total iron ore concentrate production capacity of the Group’s four principal projects (on a 100% basis) has the potential to rise from 0.4Mtpa in 2009 to 14Mtpa in 2014 and to in excess of 20Mtpa in 2018:

• Sierra Leone – sinter feed : 1.5Mtpa in 2011 to in excess of 3Mtpa in 2013

• Saudi Arabia – DR pellets : 5Mtpa in 2013 to 10Mtpa in 2017

• Greenland – DR pellet feed : 5Mtpa in 2014 to 10Mtpa in 2018

• China – magnetite concentrate : 0.4Mtpa in 2009 to 1Mtpa in 2011

(Source: Company estimates)

The strategy of London Mining is to focus its activities on deliverable iron ore projects, where the key features are scaleable production, financing opportunities and a clear route to market. The ability to accelerate projects through to efficient producing mines, utilising its experienced technical and operating team, is an important part of the Company’s strategy.

The Group’s principal projects range from late stage exploration projects, through a brownfield site to an under-optimised producing mine, all of which the Company intends to develop to be efficient producing mines. All of the Group’s principal assets have an ore body and logistics solution which allow for production to be initiated and/or expanded in phases. The logistics solution primarily focuses on workable port locations with available land and with the ability to load, either directly or via transhipment, to ocean going vessels. The port locations are all within approximately 100km of the proposed mine site for all of the existing principal projects with the exception of China, where the product is largely sold at the mine gate, hence transportation costs are low. Currently, London Mining’s target markets are the MENA countries and China, and all of the principal assets are able to supply one or both of these markets.

The Company has an experienced management and technical team. The iron ore assets are managed by in country project directors aided by a technical services team headed by the Company’s Chief Operating Officer, Luciano Ramos and comprising seven people with expertise in geology, metallurgy and mine engineering. The technical services team is focused on delivering low-cost, fast track solutions to production. The iron ore assets are overseen by the Company’s management team in London, which focuses on head office functions including funding, off-take agreements and corporate development opportunities

London Mining Developing Mines

London Mining  PLC (LOND.L)

London Mining Plc is developing mines to supply the global steel industry. The Company has iron ore exploration and development projects located in Sierra Leone, Saudi Arabia, Greenland, China and Chile, and a coking coal project in Colombia. The Company’s products include pellet feed, P1 sinter feed / P2 sinter/pellet and DR pellets. The Marampa mine is a 13.82 square kilometers brownfields site. The Company focuses to develop Marampa in two phases. The Wadi Sawawin Project is located in the north-west corner of Saudi Arabia, 125 kilometers from Tabuk and 60 kilometers from the Red Sea port of Duba. Greenland includes the Isua Project. Isua is located 150 kilometers Northeast of Nuuk. Isua will produce a 70% Fe pellet feed concentrate. London Mining had completed three seasons of exploration drilling on the Isua Project.

LONDON MINING SIGN A NEW LONG TERM OFF - TAKE AGREEMENT

 LONDON MINING SIGN A NEW LONG TERM OFF - TAKE AGREEMENT

London Mining Plc is pleased to announce that it has signed a long term off-take agreement for 4 million tonnes of iron ore per annum with Suns Trading Ltd, a wholly owned subsidiary of Suns International Holdings Ltd.

London Mining has signed a long term iron ore purchasing agreement with Suns Trading Ltd. whereby Suns will purchase on a "take or pay" basis the Company's available production exports up to a committed quantity of 4 million tonnes per year. The contract pricing is based on CVRD benchmark prices and an additional marketing fee will be payable for managing the ongoing commercial and supply arrangements with steel mills in China directly on behalf of London Mining. Suns and its end-users have expressed demands of more than 4mtpa which will be at the Company's discretion.  Suns Trading currently manages iron ore buying for over 12 steel mills in China and supplies approximately 15m tonnes of iron ore lump and fines per year to mills in various provinces in southern and northern China.

Suns Chairman, Wilson Chen said: "We are very happy to have agreed this important purchasing contract with London Mining.  We have high and rapidly growing demand for this essential commodity amongst our steel mill clients and the relationship with and supply from London Mining is important for meeting their expanding needs for high quality iron ore in the future."

Graeme Hossie, Corporate Development and Deputy Managing Director for London Mining said: "This deal gives London Mining multiple customers in China providing a diversified purchasing base so as not to be reliant on one steel group. It also provides capable and seasoned commercial management of the end user relationships allowing London Mining to focus on expanding production in its mines worldwide.  As Suns is a Hong Kong based group long established in international business and supplying Chinese companies, the relationship resolves cultural, language and bureaucratic issues for London Mining in supplying Chinese customers and extends London Mining's customer reach and relationships within China."

Mining

London Mining

CGMR has engaged a highly professional management team that includes Mr William Green, Mr Loong Keat Tan, and Dr Clyde L Smith to manage the operations. Mr Green is a graduate of the University of Pennsylvania's Wharton School of Business and has more than 15 years of business experience in Asia. Mr Tan will guide the mining operations: a former mining executive who served Rio Tinto for 21 years as General Manager of various projects including Hamersley Iron's Mount Tom Price Mine in Western Australia and Bougainville Copper Ltd.'s mine in Papua New Guinea. Mr Tan also served Rio Tinto as head of their Hong Kong and Beijing offices. Dr Smith, who will guide geologic studies, is an experienced mining industry geologist who has been responsible for discovery of five ore deposits in Canada, the U.S., and Mexico.

As at 29 October 2008, XNS and Sudan had approximately 400 employees.

CGMR intends to create additional value by reducing costs through operating efficiencies and executing expansion plans, with a run rate target for XNS of 1.2 mtpa production capacity during 2011. Further production increases and efficiencies would arise from the addition of a new mining operation at Matang, located about 9km WSW of the Sudan plant. Matang has a 21.88million tonnes magnetite resource averaging 25.15% Total Fe estimated by No. 322 Geological Brigade to Chinese standards (not JORC) in December 2003.