Results Of The Marampa Life Of Mine Study

40 year operation at 6Mdmt/a with average life of mine operating cost below USD45/dmt

Highlights

•Probable JORC reserve reported of 539Mt at 31.1% Fe, sufficient for >40 year mine life

•USD240 million to be spent in 2015 and 2016 to extend mine life after depletion of tailings

•USD40 million to be spent in 2014 on optimisation of processing facilities to expand production to 6Mdmt/a

•Life of mine average operating cost estimated to be between USD42/dmt to USD45/dmt

•Life of mine strip ratio reduced from 1.2 : 1  to 0.5 : 1

•No material increase in debt facilities required to fund life of mine extension and expansion to 6Mdmt/a.

Graeme Hossie, Chief Executive of London Mining said:

“We are pleased to announce today, in line with previous guidance, that an investment of USD240 million to upgrade the plant to process all ore types will extend the Marampa mine life to over 40 years based on probable reserves of over 500Mt. Our life of mine feasibility study has also shown that production at Marampa can be increased further by simple optimisation of the existing plant  to a rate of 6Mdmt/a in 2014 at an estimated additional cost of USD40 million. The incremental expansion and other initiatives identified by the feasibility study will reduce average operating costs to USD42/dmt to USD45/dmt over the life of mine. This reduction in our operating cost base, along with overhead reduction and a move to larger vessels, will enable us to be profitable in most long term downside pricing scenarios. We expect to be able fund our capital programme through the reinvestment of cash flows from the expanded operation requiring no significant increase to our total debt facility position.”

Jim North, Chief Operating Officer of London Mining said:

“The Life of Mine study shows that the Marampa operation can be extended through a simple upgrade of the processing plant based on proof of concept of the existing flowsheet and logistics. The investment in a plant that can process all ore types has enabled us to reduce the life of mine strip ratio by half. The production increase to 6Mdmt/a is a low risk exercise achieved by optimisation of the existing plant. We are now focussed on reducing unit costs through economies of scale and a move to activity based contracts where possible. We have commenced work on measures which should enable us to load larger vessels in 2014.”

The full release including appendix can be found on London Mining's website here: www.londonmining.com

Webcast and conference call

There will be a webcast and conference call for analysts and investors hosted by Graeme Hossie (CEO), Rachel Rhodes (CFO) and Jim North (COO) at 9.00am (BST) today.

The presentation will be available via a live and on-demand webcast, a link to the webcast can be found on London Mining's website here: www.londonmining.com

The webcast will include audio from the conference call and synchronised power point slides. You will not be able to post questions through the webcast.

For more information, please contact:

London Mining Plc Thomas Credland, Head of Investor Relations+44 (0)20 7408 7500
Liberum Capital (Nominated Advisor/Broker)Christopher Kololian / Tom Fyson+44 (0)20 3100 2000
J.P. Morgan Cazenove (Broker) Ignacio Borrell / Ben Davies+44 (0)20 7742 4000
Brunswick Group LLP Carole Cable / Rosheeka Field+44 (0)20 7404 5959

About London Mining
London Mining is an expanding producer of high specification iron ore concentrate for the global steel industry and is focused on identifying, developing and operating sustainable mines. London Mining commenced sales from its 100% owned Marampa Mine in Sierra Leone in 2012 and expects to reach production capacity of 6Mdmt/a in 2014. Marampa has sufficient resources to support a staged expansion to over 10Mdmt/a. London Mining has also completed bankable feasibility studies outlining plans for a further 20Mdmt/a of iron ore production by developing mines in Greenland and Saudi Arabia. The Company listed on AIM in London on 6 November 2009. It trades under the symbols LOND.L (Reuters) and LOND LN (Bloomberg).