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Press release from CNW Group

Afferro Mining Inc. - Update on discussions with potential strategic partners

Thursday, February 07, 2013

Afferro Mining Inc. - Update on discussions with potential strategic partners07:00 EST Thursday, February 07, 2013/NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES./LONDON, UK, Feb. 7, 2013 /CNW/ - Afferro Mining Inc. ("Afferro" or the "Company", TSX-V & AIM: AFF) wishes to provide an update on the status of on-going negotiations regarding a potential offer for the entire issued and to be issued share capital of the Company or the option to form a strategic partnership to further develop the Nkout iron ore project.Talks with International Mining and Infrastructure Corporation plc. as well as those with potential strategic partners are progressing. Negotiations with Jindal Steel and Power Limited ("Jindal") have been terminated on the grounds that the board of directors of Afferro firmly believes that Jindal's indicative offer fundamentally undervalued the Company's high quality, strategically located portfolio of iron ore projects in Cameroon and its strong balance sheet, with approximately US$90m cash in treasury as at 18 December 2012.Whilst the Company has received approaches from a number of interested parties, there can be no certainty that a formal offer will be forthcoming.Shareholders are not presently advised or required to take any action. Further updates will be made as appropriate.About Afferro Mining Inc.Afferro is an established exploration and development company listed on the TSX-V (AFF) and AIM (AFF).  Afferro's portfolio includes the 100% owned Nkout, Ntem and Akonolinga iron ore projects.  It also holds a 70% interest in the Ngoa project, an exploration target bordering Nkout.  Nkout comprises a National Instrument 43-101 ("NI 43-101") compliant Indicated Mineral Resource Estimate of 1.19Bt at 32.9% Fe and an Inferred Mineral Resource Estimate of 1.33Bt at 30.3% Fe.Qualified PersonHoward Baker (MAusIMM(CP)) has 18 years' experience in the mining industry and 10 years' experience in the exploration, definition and mining of iron ore mineral resources.  Mr Baker is a full-time employee of SRK Consulting (UK) Ltd., an independent consultancy, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Qualified Person in accordance with NI 43-101 and a Competent Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies.  Howard Baker consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.Forward-looking StatementsThis announcement includes certain forward-looking statements. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various known and unknown risks and uncertainties as well as other factors. Such forward looking statements are subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including delays in obtaining or failure to obtain required regulatory approvals. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.Information about the risks and uncertainties of the Company's business is provided in its disclosure materials, including its Annual Information Form and its MD&A for the 12 months ended 31 December 2011, available under the Company's profile on SEDAR at www.sedar.com.  Factors that could cause actual results or events to differ materially from current expectations include but are not limited to:  exploration risks, the grade and recovery of ore which is mined varying from estimates; estimates of future production, mine development costs, timing of commencement of operations; changes in exchange rates; access to capital; fluctuations in commodity prices; and adverse political and economic developments in the countries in which we or our investments operate.  Although the Company has attempted to identify important factors that could cause actions, events or results to differ materially from those described in forward looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein, speaks only as of the date hereof (unless stated otherwise) and, except as may be required by applicable law, Afferro disclaims any obligation to update or modify such forward-looking statements, either as a result of new information, future events or for any other reason.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.SOURCE: Afferro Mining Inc.For further information: Afferro Mining Inc. Luis da Silva / Jeremy Cave Tel:  +44 (0) 20 7010 7680 Investec Nominated Adviser: Neil Elliot Corporate Broker: Chris Sim Tel:  +44 (0) 20 7597 5970 RBC Capital Markets Joint Broker:  Martin Eales / Richard Hughes Tel:  +44 (0) 20 7653 4000 Pelham Bell Pottinger Daniel Thöle / James MacFarlane Tel:  +44 (0) 20 7861 3232