EQUATORIAL RESOURCES LIMITED — M&A Activity 2012

Feb 26, 2012

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ASX: EQX | 27 February 2012 | ASX RELEASE

EQUATORIAL ACCEPTS EXXARO BID FOR AFRICAN IRON AND WILL RECEIVE A$65 MILLION CASH

Highlights

• Equatorial will accept Exxaro’s bid for its 20.5% interest in African Iron on a fully diluted basis.

• Equatorial’s cash holdings will increase to more than A$90 million following receipt of A$65 million consideration from Exxaro.

• Equatorial and Exxaro confident of regional cooperation and the successful development of neighbouring Mayoko projects.

Acceptance of Takeover Bid for African Iron

Equatorial Resources Limited (“Equatorial” or “the Company”) (ASX:EQX) is pleased to announce that it intends to accept the takeover offers by Exxaro Australia Iron Investments Pty Ltd, a wholly owned subsidiary of Exxaro Resources Limited (“Exxaro”) (JSE: EXX) for all of the ordinary shares and listed options that the Company holds in African Iron Limited (“African Iron”) (ASX: AKI).

Acceptance of the takeover offers by Equatorial in respect of its African Iron shares and listed options will generate proceeds of approximately A$65 million. Equatorial will accept for the 99,400,000 ordinary shares and 22,075,061 listed options it currently holds in African Iron.

Following acceptance of the offers, Equatorial’s cash position will increase to more than A$90 million. The Company is in a very strong financial position. These funds will be applied towards feasibility studies and development activity at Equatorial’s 100% owned Mayoko-Moussondji Iron Project (“Mayoko-Moussondji”) as well as allowing the acceleration of the soon to commence drilling program at Equatorial’s 100% owned Badondo Iron Project.

Cooperation with Exxaro in the Mayoko Region

African Iron is the holder of a 92% interest in the Mayoko-Lekoumou Iron Project which lies adjacent to Equatorial’s 100% owned Mayoko-Moussondji Iron Project in the Republic of Congo. The projects are intersected by an operational bulk haulage railway line intended to be used by both companies. The railway leads directly to the deep water port of Pointe-Noire.

As a result of the rapid exploration progress made by Equatorial over the last 18 months at Mayoko-Moussondji, the two Mayoko iron projects have the potential to be developed along a similar timeline, with significant opportunities for development synergies particularly in relation to the refurbishment and upgrade of transport infrastructure. Equatorial sees Exxaro’s potential to accelerate investment in regional infrastructure as extremely positive to the region.

Equatorial Resources Limited ABN 50 009 188 694 Level 2, BGC Centre, 28 The Esplanade, Perth, WA, Australia 6000 Phone: +61 8 9466 5030 Fax: +61 8 9466 5029

www.equatorialresources.com.au

ASX: EQX | 27 February 2012 | ASX RELEASE

John Welborn, Equatorial’s Managing Director & CEO commented “We welcome Exxaro into the Mayoko region and are excited about the potential to work alongside a major mining company as we unlock the massive scale potential of our projects within this world class iron region. Our discussions to date with Exxaro have given us confidence that we can collaborate in developing our neighbouring projects for mutual benefit. Exxaro share our enthusiasm to accelerate development and their experience and expertise will be a positive addition to the region. Equatorial will have more than $90 million in cash which will allow us to continue our aggressive exploration and development programs at both of our 100% owned iron projects in the Republic of Congo.”

For all enquiries please contact:

John Welborn Managing Director & CEO Telephone: +61 8 9466 5030 Email: info@equatorialresources.com.au Web: www.equatorialresources.com.au

About Exxaro

Exxaro Resources Limited is a diversified South African-based mining company, listed on the JSE Limited (JSE: EXX) with a market capitalisation of approximately A$7.5 billion .

Exxaro mines, extracts and processes a range of minerals and metals, including coal, mineral sands and base metals primarily in South Africa, Australia and China. As one of the largest South African coal producers, with capacity now approaching 48 million tonnes per annum and the third-largest global producer of mineral sands products, Exxaro is a significant participant in the coal and mineral sands markets. Exxaro has a 20% interest in the Sishen Iron Ore Company, a subsidiary of JSE listed Kumba Iron Ore Limited, which operates the Sishen and Thabazimbi mines in South Africa.

Further information on Exxaro can be found at www.exxaro.com.

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ASX: EQX | 27 February 2012 | ASX RELEASE

ABOUT EQUATORIAL RESOURCES

Equatorial Resources Limited (ASX: EQX ), is focused on the exploration and development of two 100% owned potentially large-scale iron ore projects located in the politically stable and investment friendly Republic of Congo (“ ROC ”) in the emerging global iron ore province of Central West Africa.

The Mayoko-Moussondji Iron Project , located in the southwest region of the ROC, has an estimated global exploration target of between 2.3 and 3.9 billion tonnes[1] of iron mineralisation at a grade of 30% to 65% Fe. The project has access to a rail line running directly to the deep-water port of Pointe-Noire, where the Company’s operational office is located.

The Badondo Iron Project , in the northwest region of ROC, has an estimated global exploration target of between 1.3 and 2.2 billion tonnes[1] of iron mineralisation at a grade of 30% to 65% Fe. The project is located within a regional cluster of world-class iron ore exploration projects including Sundance Resources’ Mbalam and Nabeba projects.

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For further information contact:

John Welborn Managing Director & CEO Telephone: +61 8 9466 5030 Email: info@equatorialresources.com.au Web: www.equatorialresources.com.au

1 Exploration Target: The estimates of exploration target sizes mentioned in this announcement should not be misunderstood or misconstrued as estimates of Mineral Resources. The potential quantity and grade of the exploration targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource in accordance with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.

The information in this announcement that relates to Geophysical Exploration Results is based on information compiled by Mr Mathew Cooper (B.App.Sc (Geophysics) Hons.) of Resource Potentials Pty Ltd, who was engaged by Equatorial Resources Limited to provide geophysical consulting services. Mr Cooper is a member of The Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Cooper consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Exploration Results, other than Geophysical Exploration Results, is based on information compiled by Mr Sean Halpin, who is a member of the Australian Institute of Geoscientists. Mr Halpin is a full time employee of Equatorial Resources Limited. Mr Halpin has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Halpin consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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