Signing of MOU with POSCO for Development of Projects in Cameroon

Signing of MOU with POSCO for Development of Projects in Cameroon

Afferro Mining Inc. ("Afferro" or the "Company"), the exploration and development company focused on iron ore in Cameroon, is pleased to announce that it has signed a memorandum of understanding ("MOU") with POSCO Africa (Pty) Ltd. ("POSCO Africa"). Both parties have agreed to endeavor and cooperate in order to negotiate a definitive agreement in relation to Afferro's Nkout, Ntem and Akonolinga iron ore projects in Cameroon.

Highlights

• POSCO Africa signs MOU with the intention of making a project level investment
• POSCO Africa to cooperate to facilitate infrastructure and project development funding
• Both parties working towards signing a definitive agreement during Q2 2013

POSCO Africa (Pty) Ltd is a 100% subsidiary of POSCO Co. Ltd. This MOU is non-binding and non-exclusive.

Luis da Silva, Chief Executive Officer of Afferro, commented:

"The MOU with POSCO Africa is a potentially transformational step in the continuing development of our high quality and strategically located portfolio of iron ore assets in Cameroon. The MOU is an endorsement of the work we have undertaken to de-risk our asset base and establish a platform from which to enter the next stage of our development.

POSCO has extensive expertise in developing iron ore projects and related infrastructure, and an existing presence in Africa, making them an ideal partner to work with us to unlock long term value from our project portfolio.

We are pleased to have reached a stage of negotiations with a potential partner with the credibility and capabilities of POSCO Africa, which we firmly believe reflects the potential of our assets."

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