Q2 2012 PRODUCTION REPORT

Highlights

• Quarterly production of 397,000 wmt (369,000 dmt) of iron ore from Marampa mine in Sierra Leone, up 26% on previous quarter
• Sales of 350,000k wmt (326,000 dmt), up 36% on previous quarter
• Consistent premium quality specification ore of 65.3% Fe with low impurities
• Expansion to 5Mtpa progressing well  with second plant  expected to be commissioned in Q1 2013
• Ramp up tracking production of 1.5Mt in 2012

Post period highlights

• Appointment of James North as Chief Operating Officer

Graeme Hossie, Chief Executive Officer of London Mining said "The ramp up at Marampa is going well and we are on track with our production plans. We continue to ship our premium quality ore to customers in China where the product has been extremely well received. We have made excellent progress with our expansion plans at Marampa to 5Mtpa next year and will complete our bankable feasibility study for the next stage growth to 9Mtpa later this year as planned. The combination of near term softening of spot prices, along with an extended commissioning period of the transhipment platform has reduced current margins, however we expect a significant margin uplift once we commence loading of larger, ungeared vessels in Q3 2012. Overall, we are pleased with the progress we have made this quarter, with logistics from mine to ship proven to be robust in the earlier than expected wet season. The hedging of some of our 2012 volume at USD148/dmt has also helped our realised price.

I am also delighted about the recent appointment of James North, who will replace Luciano Ramos as COO of the Company. James brings over 20 years of mining experience to London Mining and will play a vital role as we continue the ramp up at Marampa and execute our planned expansion plans. I am also extremely pleased that Luciano remains on the board and continues to provide ongoing support and technical advice.”