ASX Announcement 19 July 2011

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 E: info@africaniron.com.au

ASX: AKI

www.africanironlimited.com

Company Presentation

African Iron Limited (“Company”) is pleased to attach a copy of the presentation which will be

delivered by executives this week.

Yours faithfully

African Iron Limited

Claire Tolcon

Company Secretary

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July 2011

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Corporate Overview

Cape Lambert Resources 25.0%2

Equatorial Resources 19.9%3

Och-Ziff Capital Management 7.4%

Deutsche Bank 5.0%

Ordinary shares on issue 479.49m

Options on issue1 67.15m

Share price A$0.28

Undiluted market cap A$134.3m

Net cash A$43.5m

Undiluted enterprise value A$90.8m

Capital structure Share price / volume history

Substantial shareholders

1.  24.45m ASX traded options (AKIOA) at $0.20 expiring 1 Dec 2013 and 42.7m options at $0.30 expiring 31 Dec 2012 2.  Escrowed to January 2012 3.  17% of the 19.9% Equatorial have acquired is subject to Equatorial shareholder approval. Source: Bloomberg as at 8 July 2011, net cash as at 31 March 2011

Equatorial Resources recently announced it will acquire up to 19.9% of African Iron at an average price of A$0.30 per share. Current enterprise value A$91 million.

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Peer Index (re-based to AKI raising @ $0.30)

African Iron

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Experienced Board of Directors

Dr Ian Burston, Independent, Non-Executive Chairman •  Over 30 years experience in international mining •  Currently Non-Executive Chairman of NRW Holdings and Non-Executive Director of Fortescue Metals Group and Mincor

Resources •  Previously Executive Chairman of Cape Lambert, Managing Director of Hamersley Iron, Managing Director and CEO of Aurora

Gold and Managing Director of Portman •  Also previously a Director of Imdex, Aztec Resources, Hamersley Iron and Kalgoorlie Consolidated Mines Joe Ariti, Non-Executive Director and Acting CEO •  Over 25 years experience in technical, management and executive roles in assessing, developing and managing projects and

companies •  Involved in the development and management of both open cut and underground mining projects in Australia, Africa, Indonesia

and Papua New Guinea •  Currently Non-Executive Director of ASX listed mineral drilling company, Swick Mining Services and Australian iron ore producer,

Territory Resources Tony Sage, Non-Executive Director •  Over 27 years experience in corporate advisory, funds management and capital raisings •  Has been involved in the management and financing of listed mining companies for the last 15 years •  Currently Executive Chairman of Cape Lambert Resources and Cauldron Energy, and Non-Executive Chairman of African

Petroleum, International Petroleum, International Goldfields and FE Limited

Appointment of Managing Director near completion

Hon John Moore AO, Independent, Non-Executive Director •  Stockbroker and member of the Brisbane Stock Exchange for 12 years. Has served on the board of many broking and banking related companies

including Citinational Limited, Merril Lynch (Aust) Pty Ltd and Grindlays (Aust) Pty Ltd. •  Federal Minister of Defence, Minister for Industry, Science and Tourism and Vice President of the Executive Council •  Currently Director of Herencia Resources and Evolution Traffic Control

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In Country Management Now In Place

African Iron has recently completed appointment of the in country executive management team.

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Mayoko Project – Overview

1. The estimates of Exploration Target sizes should not be misunderstood as estimates of Mineral Resources. The estimates of Exploration Target sizes are conceptual in nature and there has been insufficient results received from drilling to date to estimate a Mineral Resource in accordance with the JORC Code (2004). It is uncertain if further exploration will result in the determination of a Mineral Resource

Location •  Middle SW corner of the Republic of Congo •  Approx. 300 km NE of the port city of Pointe-Noire

JORC Resource •  33Mt @ 56% Fe (50% Fe cut off) of supergene hematite

Exploration Target1

•  DSO (hematite) & bDSO (enriched BIF): 320-520Mt at 40-65% Fe

•  Magnetite BIF: 1.3-2.1Bt at 30-36% Fe •  Total: 1.6-2.6Bt at 30-65% Fe

Products •  DSO lump & fines •  bDSO hematite fines •  Magnetite concentrate

First Production •  mid-2013

Mine Life •  Initial 10 year mine life based on 50Mt DSO hematite

target at 5 Mtpa production •  Production extending to +20 years with bDSO

Rail Access •  Access to Pointe-Noire on existing heavy haulage railway •  Extension to Rail access MoU has been signed •  MoU currently being converted to binding HoA

Port Access •  Land has been allocated at new port site •  MoU signed with Port Authority of Pointe-Noire (“PAPN”)

to undertake design and feasibility

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Republic of Congo and Project Location

Source: CIA Handbook

•  Located in the politically stable Republic of Congo (“RoC”)

•  Former French colony with a populat ion of approximately 3.7 million, which celebrated 50 years of independence in 2010

•  Stable government with a single President (Denis Sassou-Nguesso) since October 1997

•  Most recent election was held in July 2009 (7 year term)

•  Oil production currently accounts for approximately 65% of GDP and 92% of exports

•  Dominated by Total (France)

•  Revised Mining Code implemented in 2005 – 10% government participation, 3% royalty, 30% tax rate

•  Sundance, Xstrata, Core Mining (Glencore recently acquired an undisclosed stake) and others are also developing iron ore projects in RoC

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Ownership Structure

•  African Iron owns 80% of the Mayoko Project through two subsidiaries

•  DMC Mining Pty Ltd (a company registered in Australia) (100%)

•  DMC Iron Congo SARL (registered in the RoC) (80%)

•  Three other shareholders hold the remaining 20% of DMC Iron Congo

•  MGM (Congolese interests)

•  Saurus Resources Limited

•  Tanaka Mining Projects (Proprietary) Limited

•  The operation of DMC Iron Congo is governed by a Shareholders Agreement

•  DMC Iron Congo is the holder of exploration permit 2008-75, which covers 1,000km2 and comprises the Mayoko Project

•  Exploration permit recently renewed for a further two years to April 2013

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Access to Purpose Built Rail Infrastructure

•  Mayoko is 439 km from the port of Pointe-Noire along an established heavy haulage railway constructed in 1962. The railway runs within 2km of the Mt Lekoumou prospect

•  COMILOG previously hauled up to 3.1 Mtpa of manganese ore from Gabon along the railway (ended in 1991)

•  Railway operated by Chemin de Fer Congo Ocean (“CFCO”)

•  African Iron has an MoU with CFCO to access the railway, which is currently being converted to a binding HoA

•  Egis International appointed to undertake rail studies for transporting 5 Mtpa of iron ore from Mayoko. Preliminary findings:

•  By operating at an axle load of 17 tonnes (48 tonnes per wagon) and reopening 7 of 10 closed stations, capacity of 10 Mtpa can be achieved

•  Existing signaling / telecommunications infra-structure requires upgrading

•  At planned start-up of 5 Mtpa, rail requirements would be 5 trains daily, each with 69 wagons (3,350 tonnes in total)

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750660

510500

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285200

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8552

0 100 200 300 400 500 600 700 800

Faleme (Kumba)Simandou (Rio)

Mbalam (Sundance)Belinga (CMEC)

Zanaga (Zanaga /Xstrata)Avima (Core Mining)

Kalia (Bellzone)Tonkolili (African Minerals)

Putu (Afferro / Severstal)Kango (Core Mining)

Lebtheinia (Sphere / Xstrata)Nkout (Afferro)

Guelb el Aouj (Sphere / Xstrata)Askaf North (Sphere / Xstrata)

Marampa (London Mining)Marampa (Cape Lambert)

Mayoko (African Iron)

Planned Rail Length (km)

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Estimated Rail Distances for Selected African Iron Ore Projects

Source: RBC Capital Markets Equity Research, African Iron analysis. 10

Mayoko is only 2km from the existing purpose built, underutilised railway, and 439km to the port at Pointe-Noire.

Rail Proximity – Comparative advantage to Peers

From existing SNIM rail

CFE has access rights to African Minerals line

Distance to Sundance planned rail line

From existing SNIM rail

Road haulage then barging, no rail access

From existing SNIM rail

Road haulage then barging

Distance to potential port location at Greenville

Phase 1: refurb for 84km, new line for 125km, Phase 2 requires 200km heavy gauge rail

Kalia rail likely to be built by Bellzone's partner CIF

Could link with Sundance's planned rail, or with Gabon national railway

Proposed new 350km rail, greenfield deep water port

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Port Infrastructure at Pointe-Noire

Port of Pointe-Noire

•  The port of Pointe-Noire is located on the Atlantic coast and is the sole port for import / export of goods for RoC

•  PAPN is a government owned agency and the operator of the Pointe-Noire facility / infrastructure

•  The existing port does not have capacity for iron ore exports

•  PAPN is developing a new bulk commodities port to the north and has allocated land to African Iron next to land allocated to the Zanaga project (Xstrata)

•  PAPN has committed to assist African Iron with any information, studies, surveys and inspections required to assess the potential export of iron ore

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Conceptual Layout of Mayoko Port Infrastructure at Pointe-Indienne

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Mayoko Project – Key Prospects

•  The main prospects discovered to date are Mt Lekoumou and Mt Mipoundi

•  Mt Lekoumou has an Inferred Mineral Resource of 33Mt at 56% Fe (with a 50% Fe cut-off) prepared in 2008, based on 36 shallow diamond drill holes completed by ICES-Geomin in 1974-75

•  Comprehensive 30,000m oxide resource definition program commenced in late February 2011

•  Interim resource update targeted for September 2011 quarter, main resource update December 2011 quarter

•  18 diamond drill holes (3,687m) completed between Jan-Aug 2010. This drilling confirmed the 2008 mineral resource and demonstrated the potential upside

•  The drilling also showed weathered enriched hematite (“bDSO”) and underlying fresh magnetite BIF in lenses 50-200m thick over a strike length of 7km

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Mt Lekoumou – Cross Section

Supergene hematite (DSO)

•  Hard cap and in-situ material

•  Transported (detrital) material

•  > 55% Fe

Enriched BIF (bDSO):

•  Weathered, soft BIF with coarse hematite

•  40-50% Fe

Magnetite BIF:

•  Typically higher grade and coarser grained than other projects

•  32%-36% Fe

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Mt Lekoumou / Mt Mipoundi – Geological Profile

Mt Lekoumou: DSO Ore (Supergene Hematite) MKDD003 (0 – 8m) 8m at 58.3% Fe, 3.1% SiO2, 6.4% Al2O3, 0.05% P, 0.05% S

Mt Mipoundi: bDSO Ore (Enriched BIF) MKDD006 (38 – 46m) 8m at 40.4% Fe, 39.3% SiO2, 1.5% Al2O3, 0.05% P, 0.01% S

Mt Mipoundi - Magnetite BIF MKDD002 (259 – 267m) 8m at 39.5% Fe, 40.6% SiO2, 0.4% Al2O3, 0.06% P, 0.04% S

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Magnetite Opportunity – Compares Favorably to Peers

Company Project Grind Size

(P80 µm)

Mass Recovery

(%)

Concentrate Grades

Fe (%) SiO2 (%) Al2O3(%) S (%) P (%)

African Iron Mayoko 73 42 68.7 4.0 0.25 0.04 0.01

African Minerals Tonkolili 38 26.5 70.3 2.9 0.43 - <0.01

Bellzone Kalia 65 32 68.7 3.9 0.14 0.32 0.01

Xstrata Zanaga 65 33.6 66.1 4.5 0.20 - -

•  Excellent Davis Test Tube Recovery (“DTR”) results received for the Magnetite at Mayoko

•  High iron concentrate grades (67-70% Fe)

•  High mass recoveries (40-45%)

•  Low levels of silica, alumina, sulphur and phosphorous

•  Results demonstrate the Magnetite at Mayoko can be upgraded using simple magnetic separation, at a relatively coarse grind size (80% passing 73 micrometres) to produce a high-grade concentrate, which may be suitable as a direct reduction feed stock

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80% Increase in Exploration Target Size1

•  Mayoko exploration target size increased 80% to 1.6-2.6Bt at 30-65% Fe1.

•  Approximately 320-520Mt at 40-65% Fe of the target size represents potential DSO and bDSO material1.

•  Largest targets occur to the north at M’Binda over a combined 16km of strike.

•  Importantly, the new iron ore targets parallel the nearby, underutilised heavy haulage mineral railway.

•  More than 20km of low order magnetic anomalies identified but not included in the new target size, which represent DSO and bDSO style targets.

1.  The estimates of exploration target sizes should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there has been insufficient results received from drilling completed to date to estimate 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. F

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What Have We Achieved and Next Steps….

Achievements • Recruitment of RoC executive management team

• Commenced 30,000m oxide drilling program, recently accelerated with two additional RC rigs

• Commenced rail and port infrastructure studies and metallurgical test work program

• Extended rail access MoU, presented and provided to CFCO, binding rail heads of agreement

• Renewed exploration licence for a further two years (April 2013)

• Completed airborne geophysics survey over remaining 78% of title – 80% increase to aggregate exploration target size

• Appointed additional independent, non-executive director Next Steps • Finalise appointment of CEO/MD

• Interim JORC resource update in September 2011 quarter

• Finalise binding, rail HoA with CFCO

• Appoint independent group to update scoping study

• DSO and bDSO JORC resource released in December 2011 quarter

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Project Plan – Production Target 2013

•  Exploration and development strategy for the next two years aimed at initial production from 2013 at 5Mtpa (DSO) •  Upgrade and increase DSO JORC Resource •  Generate initial bDSO JORC resource through drilling and test work •  Complete feasibility and permitting for DSO and bDSO operation up to 10Mtpa •  Preliminary magnetite assessment and testing of regional targets

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Zanaga African Minerals Sundance Afferro Bellzone London Mining Equatorial African Iron

African Iron peer share price performance (rebased to 100)1

1. All share prices have been indexed to closing price as at 14 January 2011; African Iron share price indexed to capital raising price of $0.30. Source: Bloomberg as at 8 July 2011 19

Along with the majority of its peers, African Iron’s share price has declined since listing in January, due to a general softening of equity markets.

Sector Performance F

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Conclusions •  Near term (<3 years) potential DSO production at 5Mtpa

•  Potential DSO production of 5Mtpa for +10 years, then (and as a DSO complement) bDSO, with substantial magnetite mine life thereafter

•  Excellent infrastructure endowment

•  Rail: within 2km of, and access to, heavy haulage mineral railway

•  Port: allocated 492Ha concession at Pointe-Indienne, 16km north of Pointe-Noire

•  Low capital intensity due to DSO & Infrastructure access

•  Estimate US$250-300M based on contract mining, crushing/screening, lease rolling stock & initial barge transhipment

•  Initial met test work shows readily marketable oxide iron ore and primary products with low sulphur & phosphorus

•  Mayoko licence under-explored

•  Exploration target size of 1.6-2.6Bt at 30-65% Fe1

•  320-520 million tonnes at 40-65% Fe represents potential DSO and bDSO

•  Politically stable part of Africa, with oil companies establishing a culture supportive of foreign investment

•  Attractively priced versus comparable companies, which still require significant financing, development and/or access to port and/or rail infrastructure

The estimates of exploration target sizes should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there has been insufficient results received from drilling completed to date to estimate 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.

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Appendix: Listed Peer Comparison

Company Mkt Cap

(A$m) EV (A$m)

Key African Asset(s) Country Est. first

production Production rate (Mtpa)

Forecast capex (US

$m)1 Resource

Exploration Target (as per JORC guidelines)

African Iron (ASX: AKI) 155 139 Mayoko (80%) ROC 2013

5.0 (DSO only) 250-300 33Mt @ 56% Fe (DSO) 1.6-2.6Bt @ 30-65% Fe

(Hematite and Magnetite)

Afferro (TSV: AFF) 134 91

Putu Range (38.5%) Nkout (100%)

Liberia Cameroon 2016 20.0 963 (Putu)

Putu: 2.4Bt @ 34% Fe (Magnetite) Nkout: 1.4Bt @ 34% Fe (Magnetite)

n.a.

African Minerals (AIM: AMI) 2,892 2,097 Tonkolili Sierra

Leone Q4 2011 12.0 (Phase 1) 720

12.6Bt @31% (Magnetite) 127Mt @ 58% Fe (DSO) n.a.

Bellzone (AIM: BZM) 502 266 Forecariah (50%)

Kalia (100%) Guinea 2012 4.0 (Forecariah)

346 (Forecariah)

Kalia: 3.74Bt @ 23% Fe (Magnetite) and111Mt @ 38% Fe (bDSO) Forecariah: No resource

n.a.

Equatorial (ASX: EQX) 305 243

Badondo Mayoko-Moussondji

ROC n.a. n.a. n.a. n.a.

Badondo: 200-300Mt @ 40-65% Fe (bDSO) & 1.1-1.9 Bt @ 30-45% Fe (Itabirite); Mayoko-Moussondji: 500-900Mt @ 40-65% Fe (bDSO) & 1.8-3.0Bt 30-45% Fe (Itabirite)

London Mining (AIM: LOND) 679 661 Marampa (100%) Sierra

Leone Q3 2011 3.6 (Phase 1)

101 (Phase 1) 1,008Mt @ 31%Fe (bDSO) n.a.

Sphere (ASX: SPH) 229 211

Askaf (50%) Guelb El Aouj Lebtheinia

Mauritania 2013 2.0 (Askaf Phase 1)

220

Askaf: 394Mt @ 36% Fe Guelb El Aouj: 854Mt @ 40% Fe Lebtheinia: 2.7Bt @ 32% Fe (All magnetite)

Guelb El Aouj: 1.5-2.05Bt @ 34-37% Fe (magnetite)

Sundance (ASX: SDL) 1,005 919 Mbalam (81%) Cameroon /

ROC 2014 35 4,686 2.3Bt @ 42% Fe (Itabirite) 484Mt @ 61% Fe (DSO) n.a.

Waratah (ASX: WGO) 61 61 Youkou (90%) ROC n.a. n.a. n.a. n.a. 1.0-2.0Bt @ 60-62% Fe (DSO)

Zanaga Iron Ore (AIM: ZIOC) 681 637 Zanaga (50%) ROC 2016 45 3,724 4.0Bt @ 34% Fe (Itabirite) n.a.

1. Company attributable capex required to commence production from initial project, as at 31 December 2010. Source: Bloomberg as at 8 July 2011, Company announcements, broker estimates. 21

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Disclaimer

This presentation has been prepared by African Iron Limited (“African Iron” or the “Company”). It is not a disclosure document and should not be considered as an offer or invitation to subscribe for, or purchase any securities in the Company or as an any, inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. African Iron has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, African Iron makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. Throughout this presentation all figures are quoted in A$ dollars unless otherwise stated. You should not act or refrain from acting in reliance on this presentation material. This overview of the Company’s Mayoko Iron Ore Project (“Mayoko Project”) does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Mayoko Project’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision. Information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on previous announcements made by African Iron (or other relevant parties) to the ASX. This presentation does not constitute financial product advice (nor investment, tax, accounting or legal advice) and has been prepared without taking account of any person’s investment objectives, financial situation or particular needs. Competent Person The Exploration information in this presentation is based on information compiled by K Bischoff who is a Member of The Australasian Institute of Mining and Metallurgy and consultant to African Iron. Mr. Bischoff 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. Bischoff consents to the inclusion in this presentation of the matters based on his information in the form and the context in which it appears.

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www.africanironlimited.com

FOR FURTHER INFORMATION CONTACT:

Joe Ariti Acting Chief Executive Officer

+ 61 8 9211 0600

David Tasker Professional Public Relations

+ 61 8 9388 0944 / + 61 (0)433 112 936

P.O. Box 764 West Perth, Western Australia 6872

Australia

Telephone +61 8 9211 0600 Facsimile +61 8 9322 2631

www.africaniron.com.au

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