London Mining approval

CHILE JOINT VENTURE AGREED

London Mining, the UK based developer of mines to supply the steel industry, today announces it has entered into a joint venture with a Chinese and Chilean based partner to take advantage of several iron ore opportunities in the Atacama region of Chile. The joint venture company, Atacama Mining Resources Corporation ("Atacama"), through its Chilean subsidiary, holds options over concessions to iron ore deposits in the Atacama region of Northern Chile. Under the agreement, London Mining has subscribed for 50% of the shares of Atacama.

London Mining has also agreed to make additional loans of in aggregate USD5million to the Chilean subsidiary of Atacama to fund acquisitions of a number of concessions in the area and to get exclusive rights from our joint venture partners on future iron ore prospects in Chile. The loans will be repaid to London Mining from the earlier of first sales of ore made by the joint venture or third party funding into the joint venture. The subscription by London Mining in Atacama is in consideration for the waiver by London Mining of previously advanced convertible loans in the aggregate amount of USD5 million.

The Atacama projects are located within a short distance from a number of potential port opportunities and logistics arrangements for export to China are being investigated.

Graeme Hossie CEO of London Mining said: "We are very excited to have concluded these arrangements which bring a strong pipeline of future development potential to the Group. We are currently undertaking resource definition activities and investigating the potential to obtain early production with very low investment by Atacama. We look forward to releasing updates on this activity later this year."