LONDON MINING - PLACING CONCLUDED SUBJECT TO AIM ADMISSION

London Mining today announces the conclusion of a placing of existing ordinary shares ("Ordinary Shares") by its UK brokers on behalf of long term shareholders, subject to admission of the Company's Ordinary Shares to trading on AIM ("Admission"). The Ordinary Shares have been placed with UK based institutions who will be able to trade through London’s AIM market (under the ticker LOND.L) following Admission.  Admission is expected to take place on 6 November 2009.

Passport Global Master Fund SPC Ltd and Passport Special Opportunities Master Fund, LP (together, "Passport"), Caspian Investments (BVI) Limited, Benbrack Charkit Limited and Naturaliste Holdings Pty Ltd are selling a total of 37,239,225 Ordinary Shares pursuant to the placing, at GBP1.924 (NOK18) per Ordinary Share. The placing, conducted by Liberum Capital Limited and GMP Securities Europe LLP, is conditional on, amongst other things, Admission becoming effective.  The Company will not receive any proceeds from the placing. As announced on 16 October 2009 the purpose of the placing of these Ordinary Shares is to increase the free float and provide an appropriate level of liquidity in the London market.

Immediately following Admission, Caspian Investments (BVI) Limited, Benbrack Charkit Limited and Naturaliste Holdings Pty Ltd will own 18.32%, 4.56% and 1.19% of the Ordinary Shares respectively. The selling shareholders (other than Passport, which will not hold any Ordinary Shares following Admission) have agreed to voluntary lock-ins over their remaining holdings in the company for 6 months (subject to certain carve-outs). For a further period of 180 days after the expiry of this period, the selling shareholders (other than Passport) have agreed to a customary orderly market arrangement in respect of their remaining holdings.

On 21 October 2009 the Company announced that a letter had been dispatched to shareholders providing details of the impact that the proposed Admission will have on settlement arrangements. The letter also provided details of the action that holders of interests in Ordinary Shares in VPS and registered holders of Ordinary Shares need to take if they wish to hold Ordinary Shares in dematerialised form in CREST. If you are a VPS shareholder and you have followed the procedures in sections 4(i) and 4(ii) of the letter to transfer your Ordinary Shares into CREST, you should now instruct your CREST account operator to input the matching criteria referred to in section 4(iii) of the letter by no later than noon (London time) on 5 November 2009. The trade date and settlement date to be included in the matching criteria will be 6 November 2009.

A further announcement will be made on the day London Mining admits to AIM.

Graeme Hossie, CEO of London Mining said “We are extremely pleased about the quality of the new shareholders we have been able to attract to our register. We look forward to delivering our projects and growing London Mining into a significant mid-tier mining company.”

For more information, please contact:

London Mining  
            
Thomas Credland, Head of Investor Relations  +44 20 7201 5000

Liberum Capital (Broker/Nomad) 
                     
Clayton Bush/Ellen Francis  +44 20 3100 2000

GMP Securities Europe  (Broker) 

Jeremy Wrathall  +44 20 7647 2800

Crux Kommunikasjon AS (Norway media) 

Charlotte Knudsen +47 97 56 19 59
 
Threadneedle Communication (UK media) 

Laurence Read/ Graham Herring +44 20 7653 9850

Disclaimer

The Company is not offering any new Ordinary Shares or any other securities in connection with the proposed Admission. The Ordinary Shares have not been nor will they be, registered under the US Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction of the United States or under the applicable securities laws of Australia, Canada, Japan, South Africa or the Republic of Ireland. Subject to certain exceptions, the Ordinary Shares may not be offered or sold in the United States, Australia, Canada, Japan, South Africa or the Republic of Ireland or to or for the account or benefit of any national, resident or citizen of Australia, Canada, Japan, South Africa or the Republic of Ireland or any person located in the United States.

This announcement does not constitute an offer of, or the solicitation of an offer to subscribe for or buy, any Ordinary Shares to any person in any jurisdiction to whom it is unlawful to make such offer or solicitation in such jurisdiction and is not for distribution in, or into, the United States, Australia, Canada, Japan, South Africa or the Republic of Ireland. The distribution of this announcement in other jurisdictions may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves of and observe such restrictions.

Liberum Capital Limited ("Liberum") is regulated by the Financial Services Authority and is acting exclusively for the Company and for no one else in connection with the proposed placing  of existing Ordinary Shares (the  "Placing") and Admission. Liberum will not be responsible to anyone other than the Company for providing the protections afforded to customers of Liberum or for advising any other person on the contents of this announcement or the Placing and Admission. The responsibility of Liberum as nominated adviser and joint broker to the Company is owed solely to the London Stock Exchange and is not owed to the Company or the Directors or any other person. No representation or warranty, express or implied, is made by Liberum as to the contents of this announcement. No liability whatsoever is accepted by Liberum for the accuracy of any information or opinions contained in this announcement or for the omission of any material information for which it is not responsible.

GMP Securities Europe LLP ("GMP") is regulated by the Financial Services Authority and is acting exclusively for the Company (as joint broker) and for no one else in connection with the Placing and Admission. GMP will not be responsible to anyone other than the Company for providing the protections afforded to customers of GMP or for advising any other person on the contents of this announcement or the Placing and Admission. The responsibility of GMP as joint broker to the Company is owed solely to the London Stock Exchange and is not owed to the Company or the Directors or any other person. No representation or warranty, express or implied, is made by GMP as to the contents of this announcement. No liability whatsoever is accepted by GMP for the accuracy of any information or opinions contained in this announcement or for the omission of any material information for which it is not responsible.

This announcement, including information included or incorporated by reference in this announcement, may contain 'forward-looking statements'.  Generally, the words 'will', 'may', 'should', 'could', 'would', 'can', 'continue', 'opportunity', 'believes', 'expects', 'intends', 'anticipates', 'estimates' or similar expressions identify forward-looking statements.  The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.  Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, such as future market conditions and the behaviours of other market participants, and therefore undue reliance should not be placed on such statements.  London Mining assumes no obligation and does not intend to update these forward-looking statements, except as required pursuant to applicable law or regulation.

Placing concluded subject to AIM admission