UPDATE ON AIM LISTING, RELEASE OF COMPETENT PERSON'S REPORT AND UPDATE ON ASSETS

• CPR released today on the Company's four principal iron ore assets
  o Key development milestones of principal assets fully funded

• AIM listing on track

AIM Listing

As announced on 13 July 2009, the Company intends to seek an admission of its ordinary shares to trading on AIM (as well as maintaining its listing on the Oslo Axess market of the Oslo Børs). The Company is proposing to list on AIM to benefit from the presence of established mining sector research coverage in London and improved access to global investors. The listing process is progressing well and the Company has appointed Liberum Capital Limited as its proposed nominated adviser and joint broker along with GMP Securities Europe LLP as joint broker. Admission to AIM is expected to take place before the end of the year.

Release of Competent Person's Report

A copy of the Competent Person’s Report prepared by Wardell Armstrong International in conjunction with the proposed AIM listing is now available on the Company’s website.

Update on assets

London Mining is focused on identifying, developing and operating scaleable mines to become a mid-tier supplier to the global steel industry. The Group focuses its activities on deliverable iron ore projects, where the key features are scaleable production, financing opportunities and a clear route to market. The Company was founded in 2005 and is based in London. It currently has investments in four major iron ore projects: Sierra Leone; Saudi Arabia; Greenland and China. The Company is currently undertaking resource definition programmes to ensure that all of its principal assets will have resources to JORC standard. An upgrade of Marampa tailings and Wadi Sawawin resources to JORC standards is expected before the end of the year and an upgrade of Marampa primary ore and China resources to JORC standard is expected within 9 months.

The Directors believe that the total iron ore concentrate production capacity of the Group’s four principal projects (on a 100% basis) has the potential to rise from 0.4Mtpa in 2009 to 14 Mtpa in 2014 and to in excess of 20Mtpa in 2018. This can be broken down as follows:
• Sierra Leone – sinter feed: 1.5Mtpa in 2011 to in excess of 3Mtpa in 2013
• Saudi Arabia – DR pellets: 5Mtpa in 2013 to 10Mtpa in 2017
• Greenland – DR pellet feed : 5Mtpa in 2014 to 10Mtpa in 2018
• China – magnetite concentrate: 0.4Mtpa in 2009 to 1Mtpa in 2011
(Company estimates)
 
As at 30 September 2009 the Company had consolidated Group cash of USD 230million, which it has allocated to fund the key development milestones of its principal iron ore assets:
• Sierra Leone through to production within 12 to 18 month;
• Wadi Sawawin project through to bankable feasibility study, due before the end of 2009;
• Isua project through to bankable feasibility study, by the end of 2010; and
• Upgrade of all resource estimates to JORC standards within 9 months.

Further details of the Company’s assets, objectives and strategy, methods of financing its business, current trading and prospects and management team are set out in the Appendix to this announcement.

Commenting today Graeme Hossie, Chief Executive, of London Mining said: “London Mining’s objective is to become a mid-tier supplier to the global steel industry. We have four very promising iron ore projects and a phased development plan to bring those assets through to production. With great assets, a technical team with proven expertise and a strong balance sheet, we are intending to become an established company on the London market; which is already home to some of the world’s leading mining companies. We believe that admission to AIM will give us exposure to a long established mining research and investment community.”

Please find the full announcement, including APPENDIX with updated information on the Group, as well as the Competent Person’s Report (CPR) and a presentation enclosed.

Please note that London Mining will host a conference call today, Monday 12 October 2009 at 4 pm UK time/ 5 pm CE (Oslo). Dial-in details will be announced shortly.

For more information, please contact: 

Investors

London Mining Plc 
Graeme Hossie, Managing Director
Rachel Rhodes, Financial Director +44 (0) 20 7201 5000

Media

Crux Kommunikasjon (Norway) 
Charlotte Knudsen +47 97 56 19 59
Threadneedle Communication (UK) 
Laurence Read/ Graham Herring +44 (0) 20 7653 9850

About London Mining

Founded in April 2005, London Mining is incorporated and registered in the UK. In 2007, London Mining raised over USD 185 million to advance iron ore production from its projects, and listed on the Oslo Axess, a marketplace regulated by the Oslo Stock Exchange.  In 2008, it sold its Brazilian mine to Arcelor Mittal for USD 810m and returned GBP220m to shareholders. The Company currently has iron ore projects and mines in Sierra Leone, Saudi Arabia, Greenland and China, and coal assets in South Africa and Colombia. London Mining trades under the Reuters symbol LOND.OL and Bloomberg symbol LOND:NO.

This announcement was originally distributed by Hugin. The issuer is  solely responsible for the content of this announcement.

UPDATE ON AIM LISTING, RELEASE OF COMPETENT PERSON’S REPORT AND UPDATE ON ASSETS

Competent Person’s Report on the Mineral Assets of London Mining Plc

Developing Mines for the Global Steel Industry Presentation