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London Mining Plc

6 November 2009    

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR THE REPUBLIC OF IRELAND OR ANY OTHER RESTRICTED JURISDICTION.

London Mining Plc (LOND.NO)

("London Mining" or the "Company")

ADMISSION TO AIM AND PLACING OF EXISTING ORDINARY SHARES

●	Admission to AIM
●	37.2million existing ordinary shares placed with over 30 recognised institutions at GBP1.924 (NOK18) per share
●	Identifying, developing and operating scaleable mines to become a mid-tier supplier to the global steel industry
●	Four principle production and development iron ore assets: Sierra Leone, Saudi Arabia, Greenland and China
●	Potential to increase iron ore concentrate production target to 14Mtpa by 2014 and to in excess of 20Mtpa in 2018

London Mining today announces its admission to the AIM market of the London Stock Exchange. Liberum Capital Limited is nominated adviser and joint broker along with GMP Securities Europe LLP as joint broker. The Company is also listed on the Oslo Axess market of the Oslo Børs. The Company will review the status of the Oslo Axess listing after an appropriate period of time.

In conjunction with the admission to AIM, 37,239,225 existing Ordinary Shares have been placed at GBP1.924 (NOK18) per Ordinary Share with over 30 recognised institutions. The placing was conducted by Liberum Capital Limited and GMP Securities Europe LLP.  The Company did not receive any proceeds from the placing. In connection with the placing, Sir Nicholas Bonsor (a non-executive director of London Mining) and Benjamin Lee (Head of Corporate Development) have, with effect from 6 November 2009, acquired Ordinary Shares. Sir Nicholas Bonsor acquired 15,000 Ordinary Shares taking his total holding in London Mining to 47,000 Ordinary Shares and Benjamin Lee acquired 5,000 Ordinary Shares. Following the acquisition, Benjamin Lee has 5,000 Ordinary Shares, options over 250,000 Ordinary Shares pursuant to the London Mining plc No.1 Share Option Plan and a nil-cost option award over 100,000 Ordinary Shares pursuant to the London Mining Long-Term Incentive Plan.

Further details of the placing are set out in the AIM admission document. The admission document is available on London Mining's website (www.londonmining.co.uk) and the Oslo Axess website (www.newsweb.no).

London Mining is focused on identifying, developing and operating scaleable mines to become a mid-tier supplier to the global steel industry. The Company was founded in 2005 and is headquartered in London. The Group's principal assets have actual or anticipated production and the ability for further expansion through either upgrading or acquisition.

The Group currently has four principal projects in iron ore, which it is either developing or operating on its own or through joint ventures. 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. This can be broken down as follows:

●	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

(Company estimates)

The Company is currently undertaking resource definition programmes to ensure that all principal projects will have JORC standard resources in accordance with the timeframes set out in this announcement. The Company also has a small number of investments in other iron ore and coal development opportunities.

The ability to develop projects rapidly into efficient producing mines, utilising its experienced technical and operating team, is an important part of the Group's capabilities and strategy. The Company successfully and rapidly scaled up production at its Brazilian operations prior to selling those operations to ArcelorMittal for USD810 million in August 2008. During its 16 month period of ownership, the Company invested USD32 million and increased the resource from 268Mt grading 47% Fe to 1.1Bt grading 38% Fe, expanded capacity from 0.5Mtpa to 4Mtpa, completed construction of a 3.5Mtpa sinter feed plant in less than 9 months and negotiated both long term offtake agreements and a short-term domestic sales agreement with Vale. (These resource estimates were not prepared in accordance with an internationally recognised standard, are based on historical data and are included for information only.).

GBP219 of the proceeds from the sale of the Company's Brazilian operations was returned to shareholders with USD68 million of the proceeds used to redeem bonds issued by the Company to finance the acquisition of the Brazilian operations. The balance after costs was retained by the Company for re-investment. As at 30 September 2009, the Company had consolidated Group cash of USD230 million (unaudited), which it has principally allocated for the development of its existing projects through to key milestones.

Further details of the Company's assets and management team are set out in the Appendix to this announcement.

Commenting today Graeme Hossie, Chief Executive, of London Mining said: "London Mining's admission to AIM, combined with today's placing of shares into the market from pre-existing shareholders gives us both the liquidity and exposure we need in a market that understands mining. We are fully funded to reach all of our key milestones, including full development of the Marampa Mine in Sierra Leone next year to its first phase of production. As we move our principal projects forward and progress our JORC delineation programme we expect to be able to communicate operational progress regularly to the market. Our objective is to become a mid-tier supplier of bulk commodities to the global steel industry, with a particular focus being directed towards iron ore."

For more information, please contact:
London Mining Plc
Graeme Hossie, Chief Executive Officer	+44 20 7201 5000
Rachel Rhodes, Finance Director
Thomas Credland, Head of Investor Relations
Liberum Capital (Nominated Advisor/Broker)
Clayton Bush/Ellen Francis	+44 20 3100 2000
GMP Securities Europe (Broker)
Jeremy Wrathall	+44 20 7647 2800
Crux Kommunikasjon AS
Charlotte Knudsen	+47 97 56 19 59
Threadneedle Communication (UK)
Laurence Read/ Graham Herring	+44 20 7653 9850

The Company's website can be found at www.londonmining.co.uk.

Disclaimer 

The Company is not offering any new Ordinary Shares or any other securities in connection with the Admission. The Ordinary Shares have not been nor will they be, registered under the US Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction of the United States or under the applicable securities laws of Australia, Canada, Japan, South Africa or the Republic of Ireland. Subject to certain exceptions, the Ordinary Shares may not be offered or sold in the United States, Australia, Canada, Japan, South Africa or the Republic of Ireland or to or for the account or benefit of any national, resident or citizen of Australia, Canada, Japan, South Africa or the Republic of Ireland or any person located in the United States. 

This announcement does not constitute an offer of, or the solicitation of an offer to subscribe for or buy, any Ordinary Shares to any person in any jurisdiction to whom it is unlawful to make such offer or solicitation in such jurisdiction and is not for distribution in, or into, the United States, Australia, Canada, Japan, South Africa or the Republic of Ireland. The distribution of this announcement in other jurisdictions may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves of and observe such restrictions.

Liberum Capital Limited ("Liberum") is regulated by the Financial Services Authority and is acting exclusively for the Company and for no one else in connection with the placing of existing Ordinary Shares (the "Placing") and Admission. Liberum will not be responsible to anyone other than the Company for providing the protections afforded to customers of Liberum or for advising any other person on the contents of this announcement or the Placing and Admission. The responsibility of Liberum as nominated adviser and joint broker to the Company is owed solely to the London Stock Exchange and is not owed to the Company or the Directors or any other person. No representation or warranty, express or implied, is made by Liberum as to the contents of this announcement. No liability whatsoever is accepted by Liberum for the accuracy of any information or opinions contained in this announcement or for the omission of any material information for which it is not responsible. 

GMP Securities Europe LLP ("GMP") is regulated by the Financial Services Authority and is acting exclusively for the Company (as joint broker) and for no one else in connection with the Placing and Admission. GMP will not be responsible to anyone other than the Company for providing the protections afforded to customers of GMP or for advising any other person on the contents of this announcement or the Placing and Admission. The responsibility of GMP as joint broker to the Company is owed solely to the London Stock Exchange and is not owed to the Company or the Directors or any other person. No representation or warranty, express or implied, is made by GMP as to the contents of this announcement. No liability whatsoever is accepted by GMP for the accuracy of any information or opinions contained in this announcement or for the omission of any material information for which it is not responsible.

This announcement, including information included or incorporated by reference in this announcement, may contain 'forward-looking statements'. Generally, the words 'will', 'may', 'should', 'could', 'would', 'can', 'continue', 'opportunity', 'believes', 'expects', 'intends', 'anticipates', 'estimates' or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, such as future market conditions and the behaviours of other market participants, and therefore undue reliance should not be placed on such statements. London Mining assumes no obligation and does not intend to update these forward-looking statements, except as required pursuant to applicable law or regulation.

  APPENDIX 1

INFORMATION ON THE GROUP

1.    The Group's assets

1.1    Overview

The principal assets of the Group are four iron ore projects that it is either developing or operating on its own or through joint ventures. The Group also has investments in other iron ore and coal development opportunities in order to build its project pipeline to provide sustainable growth in the future. The Group's principal assets 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. The Group focuses its activities on deliverable iron ore projects, where the key features are scaleable production, financing opportunities and a clear route to market.

The Group's principal assets are:

●	100% of the lease over the Marampa mine in Sierra Leone
	-	a near term hematite iron ore development project
	-	the Company is currently undertaking final process design and engineering work
	-	the Company is in the process of confirming resource to JORC standard
●	50% interest in SLI, a joint venture with National Mining Company of Saudi Arabia to develop the Wadi Sawawin deposit in Saudi Arabia
	-	a jaspilitic hematite iron ore project for which the Company is currently undertaking a Bankable Feasibility Study
	-	NMC owns the exploitation and exploration licences for the Wadi Sawawin deposits and has agreed to transfer these to SLI
	-	the Company is in the process of confirming the Wadi Sawawin resource to JORC standard
●	100% of the exploration licence for the Isua deposit in Greenland
	-	a magnetite iron ore deposit
	-	the Company is currently undertaking a pre-feasibility study
	-	Isua has 507Mt of resources to JORC standard
●	50% interest in CGMR BVI, a joint venture with Wits Basin, which owns 100% of the Xiaonanshan mine and Sudan plant in China
	-	a producing magnetite iron ore mine and processing plant
	-	a drilling programme is planned to confirm resource to JORC standard

All of the Group's principal iron ore assets have an ore body and logistics solution which allow for production to be initiated and/or expanded in phases. The Directors believe that the total iron ore concentrate production capacity of these 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 Company also has a number of investments in other iron ore and coal development opportunities:

●	a 20% interest in ICC, a Colombian coal exploration and development company
●	a 39% interest in DMC Coal and a contractual right to a 28% interest in DMC, a South African holding company with interests in various coal and iron ore exploration and development companies
●	a USD2 million loan to assist funding of exploration of a Chilean iron ore project
●	a 55% interest in a small Mexican iron ore project

The Company has an experienced management and technical team. The iron ore assets are managed by 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 focussed 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.

The ability to develop projects rapidly into efficient producing mines, utilising its experienced technical and operating team, is an important part of the Group's strategy. The Company successfully and rapidly scaled up production at its Brazilian operations prior to selling those operations to ArcelorMittal for USD810 million in August 2008. During its 16 month period of ownership the Company invested USD32 million and increased the resource from 268Mt grading 47% Fe to 1.1 Bt grading 38% Fe, expanded capacity from 0.5Mtpa to 4Mtpa, completed construction of a 3.5Mtpa sinter feed plant in less than 9 months and negotiated both long term offtake agreements and a short-term domestic sales agreement with Vale. These resource estimates were not prepared in accordance with an internationally recognised standard, are based on historical data and are included for information only.

The Company's investments in coal assets are early stage minority interests and, as such, the assets are managed by the management teams of the partner companies.

1.2    Iron ore projects

1.2.1    Sierra Leone: Marampa iron ore mine (100% owned)

(a)	Highlights
●	Brownfield asset comprising economic tailings and primary ore
●	Economic route to market identified via a combination of road, barge and transshipment facility
●	Phase 1: Expected production capacity of 1.5Mtpa 66% sinter feed within 12 to 18 months of commencing development
●	Phase 2: Potential expansion to in excess of 3Mtpa 66% sinter feed or blast furnace feed from additional tailings capacity and/or development of the primary ore
●	Final stage exploration to confirm resource to JORC standard for the tailings by the end of 2009
(b)	Introduction

The Marampa mine is located 125km by road east/north-east of Freetown, the capital of Sierra Leone, in the Lunsar area in the Marampa Masimera Chiefdom in the Port Loko District, Northern Province of Sierra Leone. It is a brownfield asset, comprising primary ore resources and economic tailings that can be re-processed.

The Marampa deposit was discovered in 1926 and open pit production was commenced in 1933 by the Sierra Leone Development Company. By the 1960's iron ore production had reached 2Mtpa. The mine was last in production in 1985, prior to the civil war.

(c)	Title and ownership

The Company secured an option to acquire the mining rights at the Marampa mine in December 2005. After securing funding, the Company 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 the Company.

In September 2008, the Company commenced legal proceedings against a wholly owned subsidiary of African Minerals in connection with a dispute over the coordinates of the Marampa mining lease (ML 02/05). In December 2008, the Government of Sierra Leone, acting through the then Minister of Natural Resources, the Attorney General and the Minister of Justice, commenced legal proceedings in relation to the Company's right to mine the Marampa mining lease. In August 2009, London Mining and African Minerals settled their respective claims over the Marampa district and in September 2009, London Mining and the Government of Sierra Leone resolved amicably their dispute over the same area.

On 31 August 2009, the Government of Sierra Leone issued a new mining lease (ML 02/09) to LMC. The mining lease covers an area of 13.82km2 and expires in August 2034.

(d)	Geology and resource

The iron ore deposit at Marampa is hosted in the pre-Cambrian Marampa Schist formation. It has a complex structure which is believed to comprise a single main horizon of quartz-hematite schist that has been isoclinally folded and thrusted. It has a maximum thickness of about 65m, dips at 45° to 85° east/ south-east and has a sharp contact with its quartz mica schist host rock.

The mining lease incorporates the principle primary ore deposits at Masaboin Hill and Ghafal Hill as well as tailings deposits from former operations that occupy low ground immediately to the east of Masaboin Hill. There are ten tailings deposits with a central cluster of five deposits collectively accounting for approximately 85% of the total estimated tailings tonnage. The five peripheral or satellite deposits, some of which are farmed, account for the rest of the tailings resource.

Based on historical records from Austrominerals (1985), the Directors estimate a preliminary unclassified resource of 47Mt grading 28% Fe for tailings and 43Mt grading 38% Fe for primary ore. A further 41 Mt of primary ore grading 36% Fe was identified by LKAB in 1978. These resource estimates have not been prepared in accordance with an internationally recognised standard, are based on historical data and are included for information only.

An updated statement of resources for the tailings to JORC standard is expected to be completed by the end of 2009. A 54 hole, 6,925m diamond drilling programme is ongoing to validate the primary ore deposit to JORC standard by June 2010. The Directors believe there to be significant additional resource from the primary ore deposit.

(e)	Operations

The Company is currently completing final design and process engineering and plans to commence development at Marampa by the end of 2009. Construction of a tailings re-processing facility to provide 1.5Mtpa of capacity is expected to be complete within 12-18 months of work beginning (Phase 1). The Directors believe that production could be increased to in excess of 3Mtpa through an expanded tailings operation and/or development of the primary ore resource (Phase 2). A decision on the expanded production capacity will be made following the announcement of a resource to JORC standard for the primary ore in the first half of 2010.

In September 2009, the Government of Sierra Leone approved a proposed fiscal incentive package, the main features of which are a reduction on all import and excise duties (including fuel, lubricants, capital expenditure and spare parts) for the duration of the mining lease; and a reduction in the corporation tax rate and other operational taxes for the first 10 years of the project. The Company's mining plans, together with the fiscal incentives are expected to be ratified by the Sierra Leone Parliament before the end of 2009 which will enable the Company to commence development.

Conventional truck and shovel methods and hydraulic mining are expected to be used to extract the tailings resource. Testwork undertaken on a three tonnes tailings sample (25.6% Fe, 46% SiO2, 16.2% Al2O3) in Brazil has shown that a two stage high intensity magnetic separation process is able to produce 65.5% Fe product with 2.5% SiO2 and 2.9% Al2O3 (suitable for use as sinter feed). Testwork also shows that a higher grade, 67.1% Fe product with 1.2% SiO2 and 2.1% Al2O3 could be produced by adding a milling circuit. This additional stage is not being considered because the Directors believe there to be a strong market for the lower grade Marampa product and a milling circuit would increase initial capital expenditure. Based on unclassified historical resource estimates and annual concentrate capacity of 1.5Mtpa for tailings and an additional 1.5Mtpa for primary ore, the Directors believe that there is sufficient resource to support a tailings re-processing operation for 11 years and a mine life in excess of 15 years for primary ore.

The Company expects to transport the concentrate to barge loading facilities at Tawfayim on the Port Loko creek for shipment to offshore floating cranes 60km away for loading at a location which can accommodate Handymax, Panamax or Capesize ships. The mine is located 40km from Tawfayim, of which 22km is existing tarmac road. The remaining 18km will be a laterite road, which has been surveyed, is under construction, and will be completed before production commences.

Current estimates for Marampa indicate operational expenditure for Phase 1, 1.5Mtpa production of concentrate, of USD32.9/dmt comprising: mining USD1.9/dmt; processing USD6.7/dmt; haulage, loading and transport USD11.9/dmt; overheads USD10.7/dmt and royalties of 3% of the realised price of USD1.7/dmt. Capital intensity for the project is positively impacted by the absence of a requirement for crushing and milling circuits to process tailings and the proximity of the operations to the coast. Total capital expenditure is expected to be USD70 million (including a contingency) for the 1.5Mtpa tailings reprocessing operation or USD47/t of annual capacity. The main capital items are: processing USD25 million; power generation and distribution USD13 million; haulage, loading and port facilities USD11 million; facilities USD8 million; mining USD4.8 million; roads and site preparation USD3.5 million and dredging river USD1.5 million. A further USD10 million is estimated to be required to fund pre-production working capital requirements and residual acquisition costs, )including USD1 million for 19 Mt of additional tailings that were purchased from the Government of Sierra Leone following the award of the new mining lease in September 2009), and USD5 million for owners pre-production overheads.

The Company has received a marketing study from CRU Strategies which identifies the most likely market for Marampa's fine sinter feed to be in Europe, with a long term price forecast between 2010 and 2020 of USD63/dmt, a $3/t premium to the Brazilian Itabira fines product. However, the Company is also in initial discussions with Chinese parties regarding off-take agreements. The Company is now investigating the optimal arrangement for offtake agreements.

The Sierra Leone project team is led out of Freetown by David Keili, who currently has a team of 19 professionals working for him, and a further 188 employees. The team is assisted by international and local consultants and contractors to implement the capital infrastructure improvement programme required to re-open the Marampa Mine.

(f)

Outlook

The Company expects to complete a resource statement for tailings to JORC standard by the end of 2009 and, subject to the ratification of the Company's mining plans and fiscal incentives by the Sierra Leone Parliament, expects to commence construction of the Phase 1, 1.5Mtpa tailings re-processing facility by the end of 2009.

A resource statement for Masoboin Hill and Ghafal Hill primary ore bodies is expected to be completed to JORC standard by June 2010 and thereafter a decision will be taken on the expanded production from 1.5Mtpa to in excess of 3Mtpa (Phase 2) on the basis of expanded re-processing of tailings or commencing production of primary ore operations. The Company expects to undertake a Bankable Feasibility Study for Phase 2 in 2011 and, subject to the results of that study, undertake construction of facilities in 2012, with production in 2013.

To date, London Mining has spent approximately USD19 million on the Marampa project including expensed overheads. It is anticipated a further USD70 million of capital expenditure, USD10 million of pre-production working capital and residual acquisition costs and USD5 million of owners overhead costs will be required to achieve the target production of 1.5Mtpa of tailings within 12 to 18 months of work beginning. The Directors intend to finance the construction of the Phase 1, 1.5Mtpa tailings re-processing facility from existing cash resources.

1.2.2     Saudi Arabia: Wadi Sawawin iron ore project (50% owned)

(a)	Highlights
●	Located 60km from the Red Sea port of Duba in a region of strong iron ore demand growth
●	Bankable Feasibility Study and resource to JORC standard expected by end of 2009
●	Phase 1: Plan to build a mine, beneficiation plant, and pellet plant, power and desalination plants, and port with capacity for 5Mtpa of DR pellets by 2013
●	Expected to benefit from cheap local energy
●	Phase 2: potential to expand production from 5Mtpa to 10Mtpa of DR pellets by 2017
(b)	Introduction

The Wadi Sawawin iron ore deposits are located in the Northern Hijaz region of the Kingdom of Saudi Arabia approximately 125km from Tabuk and 60km from the Red Sea port of Duba. The formations were discovered in 1953 and during the following 40 years they were investigated by various authorities, principally British Steel Consultants Ltd. The deposits are between 600m and 1,100m above sea level in mountainous country.

In January 2008, London Mining entered into an agreement with NMC to form a 50/50 joint venture company, SLI, to develop the deposits. NMC is a Saudi company owned by crown and industrial interests. HRH Prince Nawaf Bin Sultan Bin Abdul-Aziz is the Chairman of NMC. London Mining has committed to fund the project to the stage of a Bankable Feasibility Study, which is expected to cost USD16 million in total. SLI intends to develop the Wadi Sawawin open pit iron ore project to create an iron ore mining and pelletising operation to produce DR pellets to supply steel production in Saudi Arabia and the Middle East and North Africa Region.

In January 2009, independent mining engineers Ausenco/SEI completed a pre-feasibility study that showed that the Wadi Sawawin project with production of 5Mtpa DR pellets (Phase 1) was feasible.

The Company is currently undertaking a Bankable Feasibility Study. Worley Parsons have been engaged to undertake this study, which is being managed by the Company's Wadi Sawawin project team. Standard Chartered Bank has been engaged as the financing adviser for the project. The Bankable Feasibility Study is expected to be completed before the end of 2009.

(c)    Title and Ownership

NMC holds exploration licences over three groups of Wadi Sawawin deposits - the Western Group, the Eastern Group and Wadi Alhamra. It also has an exploitation (mining) licence for part of the Western Group deposits. The exploration licences cover an area of 211 km2 and expire in June 2010 and the exploitation licence covers an area of 3.5km2 and expires in September 2032. The Company intends to renew the exploration licences at the appropriate time.

As part of the joint venture, NMC has agreed to transfer the licences to SLI and is in the process of effecting the transfer. The transfer requires the consent of the Ministry of Petroleum and Mineral Resources. 

(d)    Geology and resource

Jaspilitic iron ore has a widespread occurrence in the Wadi Sawawin district, mostly in small deposits that owe their formation to intense tectonics and subsequent erosion. The main jaspilite unit, of the algoma type, is generally 30-60m thick with grades varying between 40% and 43% Fe. The iron formation is hard, finely laminated rock consisting of hematite and magnetite rich bands alternating with dark red jasper bands.

Unclassified resource and reserve estimates undertaken by British Steel Consultants between 1976 and 1994 identified a total of 412Mt of resources at an average grade of approximately 42% Fe and 28% SiO2. The current programme of work focuses on the Western Group of deposits. In 2009 Snowden Consultants estimated a total mineral unclassified resource of 230Mt at the Western Group of deposits at an average grade of approximately 41% Fe. These resource estimates have not been prepared in accordance with an internationally recognised standard, are based on historical data and are included for information only.

London Mining is currently undertaking a 3,000m drilling program to verify the existing resource at the Western Group deposits. The Company expects to confirm a resource to JORC standard based on the 2009 Snowden Consultants estimates by the end of 2009 and to announce an upgraded resource to JORC standard in 2010 based on the current drilling programme.

The Company has not yet undertaken any exploration work on the Eastern Group or the Wadi Alhamra, however the Directors believe that there may be the possibility of expanding resource through exploration of these deposits.

(e)    Operations

A pre-feasibility study performed by independent mining engineers Ausenco/SEI on the 5Mtpa of DR pellets first phase Wadi Sawawin project was completed in January 2009 and concluded that the project would be feasible.

The pre-feasibility study proposed that the first phase of the 5Mpta Wadi Sawawin project (Phase 1) should be a 11.6Mtpa (ROM) open pit mine connected by a 60km slurry pipeline to beneficiation and pelletising facilities on the Red Sea Coast, north of Duba which would produce 5Mtpa of DR pellets. It is also proposed that a deep water port facility should be constructed to the north of Duba, to allow direct loading of the DR pellets onto ocean going ships. The process expected to be used was modelled using crushing on site, autogenous grinding and selective flocculation to produce a DR pellet. Key findings of the pre-feasibility study supported the potential economic viability of this first phase and were as follows:    

●	Final pit design tonnage: 157Mt
●	Stripping ratio: 1.25
●	Mine Life: 14 years
●	Fe Grade: 41%
●	Beneficiation:5Mtpa
●	Fe Grade Pellet: 67%
●	Capital expenditure: USD1.8 billion

A Bankable Feasibility Study is currently being undertaken by Worley Parsons, which is reviewing all options and will provide an optimised project proposal. The Bankable Feasibility Study is expected to conclude that the location of the port should be moved to the old pilot site and that the main part of the beneficiation process should be sited at the coast. In addition, transport to the coast by way of rail or conveyor is also being considered.

The project's economics benefit from low energy costs and Wadi Sawawin's accessible location. The suggested relocation of the plant to the coast means that the plant will be located next to the main road some 20km from the oil terminal at Duba. The mine is 40km from the coast and accessed by a 55km dirt road from the proposed plant/port site. Operating costs are expected to total USD19.4/t of ROM ore or USD46/t of pellets. This comprises mining USD2.0/t; processing USD15.3/t; and general and administration costs of USD2.1/t.

An independent market study by CRU Strategies to evaluate the market for DR pellets and pellet feed in MENA over the life of the Wadi Sawawin project was completed in January 2009. The January 2009 CRU Strategies market study confirmed that the economic outlook for MENA was strong and that the market for DR pellets was undersupplied and growing and calculated a long term pricing premium for the Wadi Sawawin product of $21/t to Brazilian Tubarao pellets. A sustained and significant gap in the supply of DR pellets was forecast in the medium term for MENA, even after planned new projects in the region, which should provide the opportunity for further production capacity expansion from 5Mtpa to 10Mtpa. An updated study received in August 2009 forecast a supply/demand deficit of 13Mt in 2013 and 12Mt in 2019 and indicated a long-term pricing outlook for DR pellets (FOB Red Sea) of USD113/t. The market study supports SLI's objectives of creating a hub for DR pellet production in Saudi Arabia.

The Wadi Sawawin project team is led out of Oman by Manfred Deutsch, who has a team of six professionals working for him and two administrative employees.

(f)    Outlook

The completion of the Bankable Feasibility Study is expected to optimise the pre-feasibility study and to facilitate the financing of Phase 1 of the project during 2010 to enable first production in the third quarter of 2013. A 3,000m resource defining drilling programme is underway with the objective of increasing the historical identified mineable resources in order to extend the mine life from 14 years, which is expected to be completed in the first half of 2010.

In June 2008, SLI signed a non-binding strategic memorandum of understanding with SAPIS for 100% of the offtake of the Wadi Sawawin project. The memorandum of understanding also referred to the future equitable contribution of the Company's Isua project in Greenland to the SLI joint venture and the provision of financing on attractive terms. SAPIS is a company formed by the Saudi Bin Laden Group, NMC and others, SLI intends to negotiate a formal agreement with SAPIS following the publication of the Bankable Feasibility Study. At this stage, London Mining has not taken a decision regarding the contribution of the Isua project to SLI.

The Kingdom of Saudi Arabia has a policy of diversifying its economy away from oil-related activities and the Wadi Sawawin iron ore project would assist in such a diversification. The Government of Saudi Arabia, through the Public Investment Fund, makes available significant loans to commercial projects that will assist in the development of the economy. The Directors believe that the Wadi Sawawin project will have access to loans from the Public Investment Fund with significantly better terms than would be available elsewhere.

To date London Mining has spent approximately USD8.5 million on the Wadi Sawawin project. It is anticipated that a further USD11 million will be spent by London Mining to complete the Bankable Feasibility Study. The construction of Phase 1 of the Wadi Sawawin project is intended to be funded from third party debt or equity funding and the Company will work with a number of parties, expected to include its joint venture partner NMC, SAPIS, Standard Chartered Bank and other external providers of finance, to secure such funding. The Directors believe that financial commitment in 2010 should see production in the third quarter of 2013.

The Directors believe that there is a resource potential to expand production at Wadi Sawawin from 5Mtpa to 10Mtpa by 2017 (Phase 2). Feasibility studies will be undertaken to confirm this once financing has been arranged for Phase 1.

1.2.3     Greenland: Isua iron ore deposit (100% owned)

(a)	Highlights
●	Large resource to JORC standard of 507Mt at 35% Fe
●	Initial testwork indicates ore can produce high quality magnetite pellet feed
●	Located approximately 100km from potential port site capable of year round shipping
●	Updated JORC resource expected before the end of 2009
●	Pre-feasibility study expected during the first quarter of 2010
(b)	Introduction

The Isua deposit was acquired by the Company in October 2005. The deposit was discovered in 1962 and work was carried out by Marcona Corporation in the 1970s and by Rio Tinto (RTZ) in the late 1990s. Until now, the project has not been developed due to historic low iron ore prices.

Isua is located in Greenland on the western edge of the inland ice cap. The deposit sits at an altitude of between 800m and 1150m above sea level, some 155km south of the Arctic circle and 150km north­east of the capital city of Nuuk. The deposit is located some 65km inland from the nearest fjord.

As the deposit is located on the "warm" western side of Greenland, it benefits from the possibility of year round operations and shipping to world markets. Very limited local infrastructure exists, but there is ample access to lakes to provide water for processing and hydropower. The Company is investigating the possibility of pipeline transportation of ore slurry to the proposed port site in deepwater fjords approximately 100km away. The Company is also investigating other transportation solutions as part of a pre-feasibility study.

(c)    Title and ownership

The Group owns the exclusive exploration licence (No. 2004/18) for the Isua prospect in West Greenland and a non-exclusive prospecting licence covering onshore areas of West Greenland.

The exploration licence covers an area of 26km2 and expires on 31 December 2013, ten years after first issuance. The ability to renew the exploration licence beyond the tenth year is at the discretion of the Greenland Bureau of Minerals and Petroleum. There is a right to convert to an exploitation licence which would be valid for 30 years (subject to satisfaction of certain conditions). The exploration licence establishes an exclusive right for the owner to explore all minerals except hydrocarbons and radioactive elements in the designated area.

The prospecting licence was issued to London Mining on 21 November 2007 for a period of 5 years, expiring on 31 December 2012. The prospecting licence establishes a non-exclusive right for the owner to prospect for minerals, excluding hydrocarbons and radioactive elements, in the designated area for areas suitable for further exploration.

(d)    Geology and resource

Isua lies to the west of an oval-shaped dome-like intrusion of pegmatitic granite. It is a banded iron formation that dips overall at 60° to 70° to the east or southeast, with the dip being steeper in the south of the deposit. It is folded into a shallow syncline, with sharp folding near the hanging wall of the deposit in places. Such folding may account for an apparent thickening of the BIF unit in the central part of the body. The BIF unit is between 200m and 300m thick and has been traced on the surface over a strike length of some 1,000m. A thin, low-grade BIF horizon exists in the hanging wall of the northern part of the deposit and there is a 500m long (+40,000 gamma) magnetic anomaly 300m inside the footwall of the deposit. The principal ore mineral is magnetite and gangue mineral is predominantly quartz.

Previous work completed by IMC defined a resource to JORC standard of 880Mt at 34% Fe (of which 58Mt at 33% Fe was classified as Indicated and 822Mt at 34% Fe was classified as Inferred) and an open pit resource of 81Mt at 33% Fe (without removing any ice sheet) or 185Mt at 33% Fe (assuming removal of 50m of the ice sheet).

In June 2009, Snowden Consultants classified part of the historical resource as an Inferred mineral resource to JORC standard of 507Mt at 35% Fe. Snowden Consultants only incorporated parts of the resource to 350m whereas IMC included material to a depth of 600m.

(e)    Operations

From the preliminary resource estimates, Snowden Consultants has produced an open-pit design comprising 168Mt of ore grading 35% Fe and 41% SiO2 with a stripping ratio of 0.54t/t. This will support concentrate production of 5Mtpa for 15 years (Phase 1). London Mining believes there is an opportunity to expand production by exploiting ore outside of the mineable resource currently being considered by Snowden Consultants.

The Company is considering various process routes for production from Isua. One option currently being considered is to produce a concentrate suitable for blending with ore from Wadi Sawawin at the Company's proposed pelletising facility in Saudi Arabia in order to produce a DR pellet. The Company is also exploring other opportunities including to sell a high quality blast furnace pellet feed into Europe or China.

The Greenland project team is currently led out of Nuuk by John Wonnacott, the former Chief Engineer of Diavik diamond mine, who currently has two professionals working for him, including Dr. Xiaogang Hu, a glacier specialist who has a PhD in hydrology and many years' experience in construction in permafrost environments.

(f)    Outlook

The Company completed a 3,600m drilling programme in the summer of 2009 and plans to release an updated resource to JORC standard before the end of 2009. A pre-feasibility study is planned for completion by March 2010 and subject to positive results, a full Bankable Feasibility Study will be carried out by the end of 2010. Environmental base-line studies are being performed in order to allow the project to meet all environmental requirements within the proposed timeline and a community and regional relations programme is being put in place. The Directors believe that construction of Phase 1 will begin in 2012 with first production in 2014.

The Directors believe that there is a resource potential to expand production at Isua from 5Mtpa to 10Mtpa by 2018 in a second phase. Feasibility studies will be undertaken to confirm this once financing has been arranged for Phase 1.

To date, London Mining has spent approximately USD14.5 million on the Isua project and expects to spend a further USD7 million to deliver a pre-feasibility study in the first quarter of 2010. Subject to the results of the pre-feasibility study, the Company expects to spend a further USD21 million to deliver a Bankable Feasibility Study by the end of 2010.

1.2.4     PRC: Xiaonanshan iron ore mine (50% owned)

(a)	Highlights
●	Acquired in April 2009
●	Positive net operating cash flows from current open pit production capacity of approximately 0.4Mtpa of magnetite concentrate
●	Potential to increase production to in excess of 1Mtpa through acquisition of the neighbouring SBQ mine, and the Guqiao mine and associated 0.3Mtpa processing plant
●	Resource of expanded licence area (including the SBQ mine and Guqiao mine) to be confirmed to JORC standard through a planned drilling programme by September 2010

(b)    Introduction

On 17 March 2009, the Company and Wits Basin Precious Minerals, Inc. formed a 50/50 joint venture, through which the joint venture company, CGMR BVI acquired two Chinese companies through its wholly-owned subsidiary CGMR: Maanshan Xiaonanshan Mining Co Limited, the owner of the Xiaonanshan mine, an operating open pit iron ore mine near Maanshan in the Anhui Province and Nanjing Sudan Mining Co Limited, the owner of a processing plant in the Jiangsu Province. The combined operation has a current capacity of 0.4Mtpa of magnetite concentrate grading 62% to 64% Fe. Under the terms of the joint venture arrangements, London Mining made a total initial investment of USD44.5 million and the acquisition completed in April 2009.

Under the terms of the Chinese acquisitions and upon government approval, the sellers are entitled to deferred consideration of approximately RMB120 million (USD17.48 million) relating to the Sudan acquisition payable by February 2010. One of the sellers is further entitled to up to USD38.64 million under a consulting agreement with CGMR BVI, payable subject to available cash of CGMR BVI, which will largely flow from the operations of the acquired entities. It is expected that the Sudan deferred consideration will be paid in part from cash generated from the operations and also from external funds raised as part of the expansion programme set out below. London Mining has no contractual obligation to provide additional finance to CGMR BVI. 

(c)    Title and ownership

In connection with the acquisition of XNS and Sudan, the Land and Resources Bureau of Anhui Province granted XNS a new extended mining licence in February 2009, by way of the Mining Rights Granting Agreement. The extended mining licence includes two areas operated by an adjacent iron ore producer (the SBQ mine and the Guqiao mine) as well as unoccupied areas to the west. The extended mining licence was granted as part of the Chinese government's policy to consolidate domestic iron ore producers in the region. The extended mining licence covers an area of 0.66km2 to a depth of 28 metres below sea level with a mining capacity of up to 0.9Mtpa of iron ore at a 25% cut off grade (the mining of ore with less than 25% cut off is not subject to mining licence regulation). The mining licence expires on 10 February 2014, with a right, subject to satisfaction of requirements under PRC law, to apply for renewal. The extended mining licence was granted on the basis that the mining operations of XNS and the neighbouring mines would be consolidated.

Pursuant to the Mining Rights Granting Agreement, on 13 August 2009, CGMR entered into a non­binding Memorandum of Understanding to acquire the neighbouring SBQ iron ore mine and Guqiao iron ore mine. Guqiao is not being operated and SBQ produces 0.3Mtpa of ore at 63% Fe from a processing plant near to the XNS pit. CGMR is currently conducting due diligence in respect of this opportunity and expects to conclude its work during the first quarter of 2010.

The Mining Rights Granting Agreement does not specify a deadline for completion of the integration of XNS with the neighbouring mines nor does it specify the penalties if the XNS integration were not to occur. However, if CGMR does not complete the XNS integration in accordance with the Mining Rights Granting Agreement and/or does not consolidate production within the region, there is a risk that the extended mining licence, incorporating the areas currently being mined by a neighbouring operation, may be reduced so as to exclude the neighbouring operations or revoked. If CGMR is not able to mine resources from this extended licence, or is restricted to resources at current depth without any licence depth extension, there is a risk that the Company's carrying value of its shares in CGMR may not be supported in full.

XNS is required to pay a RMB18.5 million (USD2.7 million) mining rights premium to the relevant land and resource authority in respect of the extended mining licence granted in February 2009, of which the first payment of RMB3.8 million (USD0.6 million) was paid in April 2009 and the second payment of RMB14.7 million (USD2.1 million) is due before 30 November 2009. CGMR intends to apply for the licence to be expanded to permit mining at a depth below 28 metres below sea level to increase capacity following the XNS Integration and the completion of a combined pit feasibility study and mining schedule.

(d)    Geology and resource

The Xiaonanshan mining operations are located in a major iron ore producing region 2km from Maanshan Iron & Steel's Nanshan mine, the largest operator in the region. The ore deposits of the region lie within the Ningwu basin and are thought to be the product of a magmatic hydrothermal process related to a porphyry sequence. Mineralisation at Xiaonanshan is typically in the form of disseminated magnetite with associated hematite and specular hematite. The main ore bodies appear saddle-shaped with a flat middle, dipping at both sides. The access to this additional resource at depth will require the extension of the current XNS pit walls, in particular to the north, west and east. The extension to the north of the existing pit will require the acquisition of the neighbouring mines as envisaged under the XNS integration, and the extension to the east will require the relocation of the current access road to the SBQ mine. The area to the west is not currently occupied but will require negotiation with the local community to secure the usage rights. It is currently expected this will result in the payment of a small, annual fee.

The extended mining licence has a historical resource to Chinese standards of 31.2Mt grading 23.6% Fe. CGMR currently only has a mining licence over the Xiaonanshan pit to a depth of 28 metres below sea level. Historical resources, to a depth of 30 metres below sea level, have been quoted as 3.7Mt of ore grading 27.9% within the current XNS pit and 7Mt of ore at 20.6% Fe(total) within the enlarged licence. These resource estimates have not been prepared in accordance with an internationally recognised standard, are based on historical data and are included for information only.

In July 2009, CGMR commissioned Wardrop to produce an unclassified resource statement based on historical drill records. This work indicates that the geological resource of the licence can be increased. CGMR plans to implement a comprehensive drilling programme to verify the Wardrop estimate and produce a consolidated mine plan following the XNS integration to support a 1-2Mtpa operation.

(e)    Operations

The Xiaonanshan open pit mine has been in production since 1998 and currently mines approximately 1.2-1.5Mtpa of run of mine ore.

Low grade ores are crushed and magnetically concentrated on site at the preliminary concentrator, before being trucked with higher grade ores approximately 7km on a concrete paved road to the Sudan concentration plants. The ore is then concentrated to produce approximately 0.4Mtpa of 62-64% Fe product. All iron ore concentrate is sold into the local market on a monthly contract basis to a total of six customers who typically purchase 5,000t to 10,000t per month each. The concentrate is collected from the Sudan processing plant site by customers using their own trucks and transported by road to local blast furnaces and steel mills or exported from the region from a nearby river port.

CGMR is continuing with its audit of mine reserves, operations and health and safety and is in the planning stages of a drilling campaign to ratify existing drill data and define fully the global resource of the extended licence as a first stage to optimising the mine plan as well as examining possible improvements to enhance the grade and price obtained.

CGMR has appointed Green Earth Mining Resources Limited, a company controlled by William Green who acts as a consultant to Wits Basin, as operator of its Chinese operations. Under the operator agreement, Green Earth provides services to XNS/Sudan including geological investigation, survey and mine planning and a technical consultant to provide engineering and technical services. 

(f)    Outlook

The acquisitions of XNS and Sudan has provided management with a good vantage point to assess the dynamics of Chinese iron ore supply and demand. The Directors believe that this acquisition has brought additional intangible benefits through opportunities for further strategic alliances with Chinese investors and potential off-take partners, which are expected to benefit the Company in the long term. London Mining intends to establish an advisory committee to advise on relationships and opportunities in China.

CGMR aims to expand production from the existing profitable iron ore operations, by acquiring and consolidating further resources in the area and establishing international standard professional mining practices and efficiencies. In addition, cost reduction and expansion of the existing operations combined with a new marketing strategy are intended to ensure operating margins remain strong.

As described above, CGMR is currently conducting due diligence in respect of the acquisition of the SBQ mine and the Guqiao mine and expects to conclude its work during the first quarter of 2010. If the acquisition completes, the Directors believe that the capacity of the proposed enlarged mining operation comprising the Xiananshan mine, the SBQ mine and the Guqiao mine can be increased to in excess of 1Mtpa in 2011 (subject to obtaining an appropriate extension to the mining licence which currently extends to 28m below sea level).

CGMR has also acquired the right to acquire an iron ore exploration company, Matang, subject to government approval and the satisfaction of certain conditions including the issue of a new business licence to Matang, for a total consideration of RMB80 million (USD11.66 million). Matang is owned by the sellers of XNS and Sudan and is located about 9km west to south west of the Sudan plant. The Matang asset is still in its exploration stage but CGMR has the opportunity to develop it as a satellite ore body.

CGMR intends to finance the XNS Integration and the acquisition of Matang from third party funding which may, in the longer term, involve a listing of CGMR on the Hong Kong Stock Exchange. CGMR has appointed a financial adviser to advise on the fundraising. If third party funds cannot be raised on acceptable terms, or the conclusions of due diligence do not support the XNS Integration, the XNS Integration may be delayed or abandoned in its existing form and this may have a material impact on the mining licence. London Mining has no contractual requirement to provide further funding to CGMR.

1.3    Other Assets

1.3.1    South Africa: DMC Coal Mining (Pty) Ltd (39.3% owned) and a contractual right to a 28% interest in Delta Mining Consolidated Limited

On 8 August 2008, London Mining through its wholly-owned subsidiary, Rannerdale Limited, announced that it had agreed to take an initial 39.3% interest in DMC Coal, a company in which DMC has a 30.35% interest, for USD16.5 million. Rannerdale also issued a USD18.5 million loan to DMC Energy, a subsidiary of DMC. DMC Energy's obligation to repay the loan was secured by a limited recourse guarantee and a pledge and cession of shares from Mr. Heine van Niekerk's family trust in relation to 28% of the issued share capital of DMC.

On 28 August 2009, Rannerdale called for repayment of its loan to DMC Energy and exercised its rights under the guarantee and pledge which required Mr. Heine van Niekerk's family trust to transfer to it 28% of the issued share capital of DMC. The Company is currently in discussions with DMC to convert the USD18.5 million loan and its USD16.5 million investment in DMC Coal into 28% of the issued share capital of DMC, on a fully diluted basis.

DMC owns a number of thermal coal properties, the most advanced of which is its 70% owned Rietkuil project. The Rietkuil project is located in the Delmas district, 80km east of Johannesburg and adjacent to the Exxaro's Leeupan Mine. High tension power lines are close to the property as well as the rail spur to the Delmas Colliery. A full feasibility study on the Rietkuil project commenced in February 2009 and is due to be released during the first quarter of 2010. Work for this feasibility study includes the drilling of the resource to reach a SAMREC compliant measured and indicated resource. Initial results indicate that a resource of around 200Mt GTIS can be exploited by open pit methods. This resource estimate has not been prepared in accordance with an internationally recognised standard, is based on historical data and is included for information only. 

DMC has a number of other assets, the value of which the Company is currently assessing. These include an earn in right to a 51% holding in the Springbok Flats Energy project which consists of five prospecting rights situated in the southern portion of the Springbok Flats Coalfield. DMC Coal holds the exclusive prospecting rights to the Limpopo project which is situated in the Limpopo/Thuli coal field adjacent to Coal of Africa's Thuli project.

1.3.2    Colombia: International Coal Company Ltd (20% owned)

On 15 September 2008, the Group announced the acquisition of 20% of the share capital of ICC for USD5.1 million, a company with Colombian assets in coking coal, including coking coal concessions, land and permits for near term coke production facilities in the Socha region of Colombia. In addition, ICC has certain options and opportunities relating to acquisitions, joint ventures or development rights relating to thermal and metallurgical coal resources, ports and contract mining operations. ICC has engaged and is expanding a management team for the development of these assets. Graeme Hossie, the Company's Chief Executive, has a 12% personal economic interest in ICC. Mr Hossie does not participate in any Board decisions of London Mining relating to ICC.

ICC intends to build the coke production facilities once it has procured development funding; secure local supply through contracts and over time through integral mining operations and joint ventures; and secure sales agreements for the coke production. Total annual production of 0.4Mtpa of coke is targeted over time. Supply agreements are being negotiated with local artisanal and mechanised coking coal miners for the supply needs of the operations. The coke will be marketed either internationally or domestically, depending on demand and logistics costs.

The Company is currently in negotiations with ICC regarding providing some limited funding of up to USD5 million to develop further the business plan for coke and coal production. Any such funding is likely to be made within the next few months.

1.3.3    Chile

In April 2009, the Company entered into an agreement with Chinese-owned Success Mining (Hong Kong) Ltd and one of the existing shareholders of Success under which the Company made a USD2 million loan to Success. A Chilean subsidiary, Minerita S.A., 99% owned by Success, holds concessions to iron ore deposits in the Atacama Region of Northern Chile. Minerita S.A. is an early stage exploration company which is undertaking exploration and development work in Chile. The exploration and development process is ongoing, with the aim of determining if there is an economic resource of scale in the region. London Mining intends to provide technical and financial assistance to the project, including geological and metallurgical advice and may provide further limited funding to the project. The Company's existing loan to Success is interest free, unsecured and repayable quarterly out of the cashflows generated by the Success group from its operations and is repayable prior to any dividends being paid to Success's shareholders.

1.3.4    Mexico: El Artillero iron ore deposit (55% owned)

As part of its exploration activity, in August 2007 and subsequently, the Company acquired 55% of the shares of BVI registered Anglo-Mexican Mining Ltd, and funded a drilling programme, for a total investment of USD1 million. Anglo-Mexican Mining Ltd owns 98% of Compania Minera Suizo­Mexicana, a company which owns the mining rights to the El Artillero deposit in Mexico. The El Artillero deposit is located 60km east of the port city of Manzanillo (on the Pacific Coast), 5km northeast of the township of Minatitlán, and 12km northeast of the operating Pena Colarado iron ore mine, in Colima State, Mexico.

Following further exploration and test work on the deposit, the Company determined that the resource was not of sufficient size to warrant further investment. The Company is currently considering third party offers to buy out its interest in Anglo-Mexican Mining Ltd and the Directors are confident of recovering the Company's initial investment.

2.    Directors and senior management

Dr. Colin Knight - Non-executive Chairman (age 75)

Colin was appointed as a non-executive director and chairman of the Company on 14 June 2005.  He is a mining engineer and economic geologist and, since 1983, has consulted on mining finance and policy on projects worldwide for London stockbrokers and banks, and for the World Bank and Commonwealth Secretariat in developing countries in Africa.  After military service in the Royal Engineers, Colin spent some 18 years in the Canadian mining industry, including exploration, operations, mining finance and ultimately consulting. He returned to the UK in 1974, working for the Rio Tinto group in London in European and overseas exploration, budget control, project appraisal and negotiations with joint venture partners and governments. He qualified in mining engineering at the Camborne School of Mines, and holds a degree in economic geology and a PhD from the University of Toronto. Professional associations include FIMM (now FIMMM), CEng., PEng (Canada).

Graeme Hossie - Chief Executive (age 44)

Graeme co-founded the Company in 2005 and has been involved in the Group from inception. In his roles as finance director, corporate development officer and deputy managing director and, since February 2009, as chief executive, he has driven fund raisings of over USD185 million, asset and company acquisitions and joint venture partnerships, the establishment of off-take and strategic relationships, the Company's listing on Oslo Axess, growth of and subsequent disposal of the Group's Brazilian operations and the overall development of the Group's expanding iron and coal projects and international management team. Prior to founding the Company, Graeme ran a venture development consultancy assisting resource and high growth venture companies and has founded and developed new ventures as principal adviser and executive in several industries including natural resources, media and consumer products. Graeme was previously a management consultant with Bain and Company in London, and in venture capital and innovation consulting with Piper Trust. Graeme holds a business degree from Ivey at the University of Western Ontario.

Rachel Rhodes - Finance Director (age 38)

Rachel was appointed to the Board on 4 September 2008 as Finance Director. She is a member of the Institute of Chartered Accountants in England and Wales, having qualified with Coopers & Lybrand in London in 1996. She has over 10 years' experience in the mining sector, of which the last five years prior to joining London Mining were in key financial roles with Anglo American plc. During this time at Anglo American, Rachel successfully led major corporate transactions, including the financial workstreams on the demerger of Mondi plc, Anglo's paper and packaging business, which was dual listed on the London and Johannesburg stock exchanges and the Group's conversion to International Financial Reporting Standards in 2006. Rachel most recently served as Lead Corporate Finance Manager within Anglo American's corporate finance department. Rachel holds a master of arts degree in economics from Cambridge University.

Sir Nicholas Bonsor - Non-executive Director (age 66)

Sir Nicholas was appointed to the Board on 1 September 2007 as a non-executive director. A practising barrister specialising in regulatory and commercial law, Sir Nicholas was a member of British Parliament from 1979 to 1997 where he specialised in foreign affairs and defence, and was chairman of the Defence Select Committee from 1992 to 1995 and Minister of State at the Foreign Office from 1995 to 1997. Sir Nicholas has served on the board of several companies, including Blue Note Mining Inc. (Canada) from 2006 to 2008, and has served as the chairman of Egerton International Ltd from 2004 to present. He is a Deputy Lieutenant of Buckinghamshire, a freeman of the City of London (1988), a member of the Chartered Institute of Arbitrators and a fellow of the Royal Society of Arts. Sir Nicholas practised as a barrister from 1967 to 1975 and from 2003 to the present day. Sir Nicholas holds a master of arts degree in jurisprudence from Oxford University.

Malcolm Groat - Non-executive Director (age 48)

Malcolm was appointed to the Board on 4 September 2008 as a non-executive director having previously held the position of part-time finance director from June 2007. Malcolm is a fellow of the Royal Society for the encouragement of Arts, Manufactures and Commerce, a fellow of the Institute of Directors, and a fellow of the Institute of Chartered Accountants in England and Wales. In the mining sector, he serves as non-executive director with Tengri Coal plc of Mongolia and has previously served as finance director of Platinum Mining Corporation of India PLC (which was admitted to AIM in 2005). Prior to working in the mining sector, Malcolm spent a decade in finance roles in large global engineering groups. Before that he qualified with PriceWaterhouse in London and worked internationally in corporate finance. Malcolm holds a Master of Arts degree in Modern History and International Politics from St. Andrews University and an MBA from Warwick University.

Dr. Hans Kristian Schonwandt - Non-executive Director (age 68)

Hans was appointed as a non-executive director on 4 January 2006. He was the deputy minister, head of the Bureau of Minerals and Petroleum for the Greenland Government from 1998 until he retired in October 2005. Between 1987 and 1998 he was head of the department of economic geology at the Geological Survey of Denmark and Greenland. Hans has a PhD in economic geology from the University of Copenhagen. Executive management

The executive management of the Company consists of Graeme Hossie, Rachel Rhodes and the following senior managers:

Luciano Ramos - Chief Operating Officer (age 50)

Luciano joined the Group in May 2007 as President of London Mining Brasil Limitada. Luciano was appointed Chief Operating Officer of the Company's iron ore division which includes projects in Saudi Arabia, Greenland, China and Sierra Leone in February 2009. Luciano, with over 23 years' experience in the mining industry, including 15 years with Companhia Vale de Rio Doce, is an expert in mineral processing and project and mine management and heads the Company's technical services. Luciano led the transformation of the Company's Brazilian mine into a state of-the-art iron ore mining operation with a tenfold increase in production within 16 months.

Benjamin Lee - Head of Corporate Development (age 38)

Benjamin joined London Mining in April 2009 and is involved in all financial and strategic aspects of current and future projects. Prior to joining London Mining Benjamin was head of UK Mergers & Acquisitions at Kaupthing Bank from 2007 to 2008. Among a number of transactions completed there, he was the lead adviser to London Mining on the disposal of its Brazilian iron ore mine. Prior to joining Kaupthing, Benjamin worked for 13 years in Mergers & Acquisitions at UBS in London and New York, advising on a wide variety of transactions for large and mid-sized companies. Benjamin holds a master of arts degree in economics from Cambridge University.

Rohit Bhoothalingam - Head of Legal and Company Secretary (age 36)

Rohit joined London Mining in December 2008. Prior to this he was Head of Legal at a natural resource focussed investment fund. Prior to this, he worked with leading US law firms Wilmer Hale in New York and London and Orrick, Herrington & Sutcliffe in New York. Rohit has a BA in law from Cambridge University and holds a masters degree in law from Georgetown University Law Centre. He qualified for the New York Bar in 1999.

Thomas Credland - Head of Investor Relations (age 32)

Thomas is a geologist and joined London Mining in April 2009. Prior to joining London Mining, he was an institutional equity salesman in the mining and metals team at Canaccord Adams. Prior to this, Thomas was a mining analyst for Brook Hunt and Associates, working on their base metal and gold cost studies. Thomas has spent time working in exploration and development most notably at Xstrata's Windimurra Vanadiam Project in Western Australia. He holds a BSc (Hons) in Geology from the University of Edinburgh and an MSc in Mineral Project Appraisal from the Royal School of Mines at Imperial College.

APPENDIX 2

DEFINITIONS AND GLOSSARY OF TERMS

1.    Definitions

The following definitions apply throughout this announcement, unless the context otherwise requires.

"African Minerals"	African Minerals Limited
"AIM"	AIM, a market operated by the London Stock Exchange
"Board" or "Directors"	the directors of the Company whose names are set out in Section 2 of Appendix 1 of this announcement
"CGMR"	China Global Mining Resources Limited
"CGMR BVI"	China Global Mining Resources (BVI) Limited
"Company" or "London Mining"	London Mining plc
"DMC"	Delta Mining Consolidated Limited
"DMC Coal"	DMC Coal Mining (Pty) Ltd
"DMC Energy"	DMC Energy (Proprietary) Ltd
"DR"	direct reduction
"Group"	the Company and its subsidiaries
"ICC"	International Coal Company Limited
"IMC"	International Mining Consultants Limited
"Isua"	the Isua iron ore deposit in Greenland
"LKAB"	Luossavaara-Kiirunavaara AB International
"LMC"	London Mining Company Limited
"Marampa"	the Marampa Iron Ore Mine in Sierra Leone
"Matang"	Maanshan Zhaoyuan Mining Co. Ltd
"MENA"	Middle East and North Africa Region
"Mining Rights Granting Agreement"	the mining rights granting agreement dated 10 February 2009 between XNS and the Department of Land and Resources of Anhui province relating to the extended XNS licence
"NMC"	National Mining Company Limited
"Ordinary Shares"	ordinary shares of GBP0.002 each in the share capital of the Company
"PRC"	People's Republic of China
"RMB"	Renminbi, the lawful currency of PRC
"SAPIS"	Saudi Advanced Production for Iron & Steel Limited
"SBQ mine"	the Sanbanquiao iron ore mine
"SLI"	Saudi London Iron Ltd
"Snowden Consultants"	Snowden Mining Industry Consultants
"Success"	Success Mining (Hong Kong) Ltd
"Sudan"	Nanjing Sudan Mining Co. Limited
"USD" or "USD"	United States Dollar, the lawful currency of the United States of America
"Vale"	Vale S.A.
"Wits Basin"	Wits Basin Precious Minerals, Inc.
"XNS"	Xiaonanshan

2.    Glossary of Terms

The following terms have the following meanings throughout this announcement, unless the context requires otherwise:

Al2O3	Aluminium Oxide
"Bankable Feasibility Study"	a comprehensive design and costing study of the selected option for the development of a mineral project in which appropriate assessments have been made of realistically assumed, geological, mining, metallurgical, economic, marketing, legal, environmental, social governmental, engineering, operational and all other modifying factors which are considered in sufficient detail to demonstrate at the time of reporting (i) that extraction is reasonably justified (economically mineable) and (ii) the factors finance the development of the project.
"deposit"	a mineralised body which has been physically delineated by sufficient drilling, trenching and / or underground work, and found to contain a sufficient average grade of metal or metals to warrant further exploration and / or development expenditures
"dmt"	US dollars per metric tonne
"Fe"	Iron
"GTIS"	gross tonnages in situ
"Indicated"	the part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations, such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
"Inferred mineral resource"	the part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes
"JORC"	Australasian Institute of Mining and Metallurgy Joint Ore Reserves Committee (JORC) code on mineral resources and ore reserves
"Mt"	million metric tonnes
"Mtpa"	a million metric tonnes per annum
"pellet"	a small spherical marble-sized ball of iron ore used in steelmaking
"pre-feasibility study"	a comprehensive study of the viability of a mineral project that has advanced to a stage where the mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, has been established, and where an effective method of mineral processing has been determined. This study must include a financial analysis based on reasonable assumptions of technical, engineering, operating and economic factors and evaluation of other relevant factors which are sufficient for a qualified person acting reasonably, to determine if all or part of the mineral resource may be classified as a mineral reserve
"SAMREC"	the South African Code for Reporting of Mineral Resources and Mineral Reserves, as published by the South African Mineral Committee under the auspices of the South African Institute of Mining and Metallurgy
"sinter feed"	iron ore product used to make sinter
"tailings"	the gangue and other refuse material resulting from the washing, concentration, or treatment of ground ore

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