EQUATORIAL RESOURCES LIMITED — Major Shareholding Notification 2011

Jun 29, 2011

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ASX Announcement 30 June 2011

EQUATORIAL ACQUIRES 19.9% SHAREHOLDING IN AFRICAN IRON

Australian based iron ore development company, African Iron Limited ( ASX: AKI ) (“ African Iron ” or the “ Company ”) notes today’s announcement by Equatorial Resources Limited ( ASX: EQX ) (“ Equatorial ”) that it has acquired a 19.9% shareholding in African Iron (“ Acquisition ”).

Equatorial has advised that it considers the Acquisition to be strategic given the proximal location of the respective companies’ assets and access to existing rail infrastructure, and that it does not intend, at this stage, to proceed to a full takeover bid for African Iron.

The Board notes the average entity price was approximately 30c per share.

Notwithstanding the Acquisition, the African Iron Board intends to continue to conduct business as usual including proceeding with the appointment of an additional Non-Executive Director and to finalise the appointment of a Chief Executive Officer.

The Board will update the market once it has had an opportunity to meet with, and consider, Equatorial’s intentions.

Yours faithfully

African Iron Limited

G V Ariti Acting Chief Executive Officer

For more information contact:

Joe Ariti Acting Chief Executive Officer Tel: + 61 8 9211 0600

Australian Enquiries

David Tasker Professional Public Relations Tel: + 61 8 9388 0944/0433 112 936

UK Enquiries

Emily Fenton / Jos Simson Tavistock Communications Tel: +44 (0) 207 920 3150 / +44 (0) 7788554035

AFRICAN IRON LIMITED ABN: 24 123 972 814 Level 1, 2 Ord Street, West Perth WA 6005 P: +61 8 9211 0600 F: +61 8 9322 2631

ASX: AKI www.africanironlimited.com

ASX Announcement – 30 June 2011

African Iron Limited

ABOUT AFRICAN IRON LIMITED

African Iron Limited ( ASX: AKI ) is an Australian listed and domiciled iron ore development company working on the exploration and evaluation of its 80% owned Mayoko Iron Ore Project, located in the Republic of Congo (“ RoC ”) in central West Africa (“ Mayoko Project ” or “ Mayoko ”).

The RoC is a stable, single party dominant republic in central West Africa (and should not be confused with the volatile Democratic Republic of Congo). The current government has been in power for more than ten years and was re-elected for an additional term of seven years following peaceful elections in 2009.

Mayoko is located in the Niari Prefecture approximately 300kms north-east of Pointe-Noire.

The Mayoko Project represents a near term development opportunity in an emerging iron ore province in central West Africa. Unlike other iron ore projects in the region, it has excellent infrastructure endowment with a nearby underutilised, heavy haulage mineral railway passing within 2km of the main prospect at Mt Lekoumou and terminating at the port of Pointe-Noire on the Atlantic Ocean.

Mayoko has an oxide cap comprising direct shipping hematite and enriched banded iron formation, with underlying magnetite iron mineralisation. There is an existing Inferred Mineral Resource of 33Mt at 56% Fe of supergene direct shipping hematite based on shallow drilling completed in 1974-1975 by earlier explorers.

The Company’s objective is to develop an initial 5Mtpa DSO operation at Mayoko by mid2013 leveraging off the project’s proximity to existing rail and port infrastructure.

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ASX: AKI

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