🕐26.03.12 - 11:27 Uhr

GMP SECURITIES COMMENTS ON SABLE MININGS POSITIVE SURFACE SAMPLE RESULTS FROM MO
UNT NIMBA, SOUTH-EAST GUINEA



Good morning, House Broker GMP Securities has provided an update re Sable Mining Africa Limited following the Companys announcement this morning detailing positive results up to assay grades of up to 68% Fe from a surface sampling programme at its 80% owned 123.5 sq km exploration permit in the Mount Nimba area of south-east Guinea.

Following these results, a targeted reconnaissance drilling campaign is now scheduled to commence by the end of March. GMP has a BUY rating for Sable with a price target of 29p.

The current share price is 11.5p.
Brock Salier said, "This is an excellent result for Sable, whose Guinea strategy is to drill high-grade detrital Canga ore nearby to existing railway infrastructure.

Other projects targeting Canga ore have typically encountered lower-grade material, but the sheer size of Mt Nimba, and the grab sample results released today, lead us to think Sables project will have better potential.

Of note, DSO ore often has penalties associated with high iron and silica (weathering products) when combined SiO2 and AL2O3 is over 8%.

Sables high-grade samples average <6% combined which is a key positive." Please find the full release below.

If you would like any further information, please do get in touch. Best regards, Charlotte
SUBJECT: Nimba surface samples show DSO grade, drilling to start this week IMPACT: Positive - grab samples from Sables Nimba property in Guinea have returned grades up 68% Fe, with around a third of samples averaging 64% Fe, <3% SiO2 and <3% Al2O3.

The project lies only 30km from the recently reopened Nimba-Buchanan line in Liberia, which may enable a rapid mining start-up should a DSO resource be defined - drilling starts within the week. DETAILS: Sable has released grab sample results from 70 surface samples at their 80% owned Mount Nimba property, adjacent to the Mount Nimba range in Guinea.

Excluding five samples <25% Fe, the average grade was 52.3% Fe, with 34% of the population returning a grade average of 63.9% Fe, with <3% Al2O3 and <3% SiO2. With the best samples grading up to 68% Fe, the company indicates there is good potential for Direct Shipping Ore (DSO) at surface.

The area targeted is on the lower flanks of Mt Nimba, where Canga-type iron ore has been identified (detrital conglomeratic ore shedding / eroding from Mount Nimba itself).

Specifically, three main plateaus have been identified over c.

35km2, where Canga has been observed over thicknesses exceeding 15m. The company has now cut road access into the property, and aims to start drilling within the week.

The property itself lies only 30km from the recently reopened standard gauge rail linking Mt Nimba Liberia to the port of Buchanan, with some sections as close as 14km from that rail head. OUR VIEW: This is an excellent result for Sable, whose Guinea strategy is to drill high-grade detrital Canga ore nearby to existing railway infrastructure.

Other projects targeting Canga ore have typically encountered lower-grade material, but the sheer size of Mt Nimba, and the grab sample results released today, lead us to think Sables project will have better potential.

Of note, DSO ore often has penalties associated with high iron and silica (weathering products) when combined SiO2 and AL2O3 is over 8%.

Sables high-grade samples average <6% combined which is a key positive. Being detrital, Canga ore is typically free digging, enabling low opex, while existing port and rail infrastructure significantly lowers start-up capex.

In our view the company could start-up rapidly.

With Mittal themselves having announced production at a rate of 4Mtpa of DSO from Nimba Liberia only last week, there could be potential to start mining with a Mittal off-take.

However, we think the long-term strategy for the region will focus on opening up the rail and/or route for multi-user access, with several other projects in the area in both Guinea and Liberia being developed at pace. The Nimba-Buchanan line is standard gauge, which should allow wagon payload of >70t (vs.

61t for typical narrow gauge).

Being relatively new (built in 1965), and relatively short (250km), even a straightforward 200 car composition with two locomotives could readily achieve 15Mtpa with only three trains a day.

We think even this estimate is relatively conservative, and that ultimately the line will be able to handle substantially more than this. CATALYSTS: * 2Q12: Maiden drill results from Timbo, Liberia * 2Q12: Drilling to commence at Kpo Range, Liberia * 2Q12: Maiden drill results from Nimba, Guinea * 2H12: Potential for maiden resource in both Guinea (Nimba) and Liberia (Timbo)
Brock Salier, PhD Mining Analyst Email: Dir : +44-207-016-1904
Filipe Martins Associate Email: Dir : +44-207-016-1905
Sable Mining Africa Ltd / Index: AIM / Epic: SBLM / Sector: Natural Resources 26 March 2012 Sable Mining Africa Limited (Sable Mining or the Company) Positive Update on Highly Prospective Iron Ore Deposits in the Mount Nimba area of Guinea Sable Mining Africa Limited, the AIM listed resource company, is pleased to announce positive results from the Companys surface sampling programme at its 80% owned 123.5 sq km exploration permit in the Mount Nimba area of south-east Guinea.

Following these results, a targeted reconnaissance drilling campaign is now scheduled to commence by the end of March. Highlights:
* Grab samples returned assay grades of up to 68% Fe * Of 70 samples collected, only 5 returned values of less than 25% Fe * Average grade of samples more than 25% Fe was 52.3% Fe * 34% of the sample population exhibit grades >25% Fe, <3% Al2O3 and <3% SiO2 with a combined average Fe grade of 63.9% Fe * The presence of high grade hematite at surface indicates the potential for the presence of Direct Shipping Ore (DSO) material on the licence Within the permitted area, on the lower flanks of Mount Nimba, significant quantities of Canga-type iron ore conglomerate have been identified, forming three main plateaux covering an approximate area of 35 sq km with thicknesses from observed outcrops exceeding 15 metres.

The sampling programme was conducted by the Companys geological team following the completion of access routes being established to significant areas of the plateaux. The highly prospective iron ore permit is adjacent to the BHP Billiton/Newmont/Areva 600 million tonne EuroNimba iron ore project, and located approximately 30 km from the newly reopened standard gauge railway in Liberia, which extends 260 km from Nimba to the deep water port on the coast at Port Buchanan.

Accordingly, the area, including Mount Nimba, is served by established infrastructure. Sable Mining CEO Andrew Groves said, "These high grade results highlight the quality of our licence and bode well for the propertys future exploration.

Excellent sample results combined with the near surface nature of the ore body and the defined plateaux affirm our belief that the permit is highly prospective.

Taking into account its proximity to the EuroNimba project as well as to established infrastructure, we believe this permit has the potential to add significant value to the Company, and accordingly we want to rapidly advance our exploration efforts through the initiation of an initial 1,000 m drilling campaign." ** ENDS ** For further information please visit www.sablemining.com or contact: Andrew Groves Sable Mining Africa Ltd Tel: 020 7408 9200 Jonathan Wright Seymour Pierce Ltd Tel: 020 7107 8000 David Foreman Seymour Pierce Ltd Tel: 020 7107 8000 Nick Stone Matrix Corporate Capital Tel: 020 3206 7000 Richard Greenfield GMP Securities Tel: 020 7647 2836 Susie Geliher St Brides Media & Finance Ltd Tel: 020 7236 1177
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