AFFERRO MINING INC. - Nkout Resource Increases by 36% to 1.42 Billion Tonnes with 50% as Indicated status

Jun. 16, 2011 (Canada NewsWire Group) --

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TSX-V: AFF
AIM: AFF

LONDON, UK, June 16, 2011 /CNW/ - Afferro Mining Inc. ("Afferro" or the "Company"), the TSX-V / AIM listed exploration and development company with iron ore projects in Cameroon and Liberia, is pleased to announce an upgrade to its independent National Instrument 43-101 compliant Mineral Resource Estimate at its 100% owned Nkout iron ore project in southern Cameroon.

• Total Nkout resource grows by 36% to 1.42Bt at 33.6% Fe after less than four months since maiden resource estimate
• 700Mt of magnetite banded iron formation (BIF), representing 50% of the resource, promoted to indicated category at Nkout Centre
• Estimate now covers a 5.9km section of a 20km long magnetic anomaly
• Recent holes to date include:
• NKGS018 44.1m at 60.9% Fe of potential direct shipping ore (DSO) material
• NKDD022 >500m of visual mineralisation intercepted, assays pending
• 2011 drilling campaign now expected to exceed 35,000m with 8,500m completed in included in the updated resource
• Further resource estimate to include oxidised zone drilling expected in September

Luis da Silva, Chief Executive of Afferro, commented:
"This is tremendous progress as the Company targets an increased drilling rate to simultaneously target the potential DSO oxidised material as well as the BIF. This new estimate and upgrade of mineral resource category from inferred to indicated comes after just three and half months of work since the maiden MRE was released and is a testament to the hard work of the team on the ground. Subsequent resource estimates later this year are expected to show an increase in the resource whilst identifying further oxidised material. "

Mineral Resource Estimate
This Nkout Mineral Resource Estimate, issued by independent engineers SRK Consulting (UK) Ltd ("SRK") has been prepared for the Company and made compliant with Canadian National Instrument 43-101 (NI 43-101).

The report serves as an independent report prepared by a Qualified Person as defined by the Canadian National Instrument 43-101 and the companion policy 43-101CP. The definitions of Measured, Indicated and Inferred Resources, as well as reserves as used by the author, conform to the definitions and guidelines of the CIM (Canadian Institute of Mining, Metallurgy and Petroleum) reporting codes.

SRK undertook a site visit in September 2010 to assist in the drill hole planning with the exploration scope being to generate Inferred Mineral Resources for the Nkout Centre project. A further visit was undertaken in March 2011 to expand and upgrade the maiden Mineral Resource Estimate.

Table 1: Nkout, Mineral Resource Estimate

Notes:

(1) Mineral Resources which are not Mineral Reserves have not demonstrated economic viability

(2) The effective date of the Mineral Resource is 10 June 2011

(3) The Mineral Resource Estimate for the Nkout deposit was constrained within lithological and grade based solids and within a Lerchs-Grossman optimised pit shell defined by the following assumptions; metal price of USD1.40/dmtu; slope angles of 35º and 44º in the oxide and fresh material; a mining recovery of 97.5%; a mining dilution of 2.5%; a base case mining cost of USD1.40/t and an incremental mine operating costs of USD0.05/t/10 m below the 80 m reference RL and USD0.05/t/10 m above the 80 m reference RL; process operating costs of USD4.39/t crushed DSO, USD2.3/t crushed oxide and USD4.49/t crushed BIF ore; and G&A costs of USD 2.31/t crushed ore.

Nkout Centre Resource Potential
The Nkout Centre model is open at depth and SRK recognises that there is potential to increase the Mineral Resource Estimate by targeting material that falls below the optimised pit shell but remains potentially economic. This material, based on a metal price of USD1.40/dmtu is considered by SRK to be potentially economic, should sufficient exploration data be collected that confirms the geometry and continuation of the mineralisation and that enables a classified resource to be estimated. SRK has estimated that an additional 300 to 600 Mt lies below the optimised pit shell used for constraining the Inferred Mineral Resources. The potential quantity of tonnes is conceptual in nature as there has been insufficient exploration or demonstration of economic viability to report these in the Inferred Mineral Resource category at the current time. It is uncertain if further exploration will result in these targets being defined and reported in a future Mineral Resource Estimate. These potential tonnages reflect a range of material within SRK's wireframe solid models outlining the interpreted down dip extent of mineralisation.

Database Validation
The QA/QC program for Company's Nkout project consists of alternating the insertion of a blank, standard and duplicate sample on a regular basis within the sample train. The Company uses standards with varying grades which are also alternated. All samples have been assayed at the accredited OMAC laboratory in Ireland. SRK found that the results of the above described QA/QC program indicate that the Company's Nkout assay databases were appropriate for Mineral Resource Estimation.

Data Verification
Howard Baker as qualified person completed the verification of data on which the Nkout Resource Estimate was based. This verification included an assessment of QA/QC data, sample preparation and assay methodologies, density data, data inputs and survey data used in the estimate. Data was validated by using field checks, statistical methods and evaluating the Company's protocols.

Geological Modelling, Resource Estimation Assumptions, Parameters and Methods
Nkout Centre and East, being a 5.9 km portion of a larger 20 km strike length magnetic anomaly, forms an east-west trending magnetite Banded Iron Formation ("BIF") with an oxidized cap of dominantly haematite mineralisation. SRK created a geological model based on the lithological logging and magnetic susceptibility data enabling the hanging wall and footwall contacts of the BIF unit to modelled and a three dimensional solid to be created. A statistical review of the validated drill hole data enabled grade based domains to be created within the oxidized cap. Internal metasedimentary waste domains created within the BIF and oxidized cap were based on lithology logging, magnetic susceptibility data and predominantly Al₂O₃ assay grades.

A 5 m composite file was used in a geostatistical study (variography and Quantitative Kriging Neighbourhood Analysis, "QKNA") that enabled Ordinary Kriging ("OK") to be used as the main grade interpolation method. The interpolation used an elliptical search following the predominant dip and dip direction of the geological domains. The results of the variography and the QKNA were utilised to determine the most appropriate search and estimation parameters.

The interpolated block model was validated through visual checks and a comparison of the mean input composite and output model grades. SRK is confident that the interpolated block grades are a reasonable reflection of the available sample data.

Qualified Person
Howard Baker has some ten years experience in the exploration, definition and mining of iron ore Mineral Resources. Howard Baker is a full-time employee of SRK Consulting (UK) Ltd, an independent Consultancy and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Qualified Person in accordance with NI43-101 and a Competent Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Howard Baker consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

The NI 43-101 compliant Technical Report on the Mineral Resource Estimate will be filed on www.sedar.com within 45 days.

About Afferro Mining Inc.
Afferro Mining is an established exploration and development company listed on the TSX-V (AFF) and London's AIM (AFF). Afferro Mining's portfolio includes a 100% interest in the Nkout iron ore project (the "Nkout Project"), which has an estimated Indicated Mineral Resource of 701 million tonnes grading 32.4% Fe, 45.8% SiO₂ and 2.4% AL₂O₃ and 0.05% P Inferred Mineral Resource of approximately 716.5 million tonnes grading 34.8% Fe, 41.6% SiO₂ and 3.2% AL₂O₃ and 0.05% P, and surrounding iron targets in Cameroon which is subject to a resource expansion drilling programme targeting 4Bt. Afferro Mining also has a 38.5% interest in the Putu iron ore project in Liberia (the "Putu Project"), which has an estimated Inferred Mineral Resource of 185 Mt of oxide material with a grade of 37.8% Fe, 17 Mt of haematite itabirite at 48.25% Fe, and 2,173 Mt of magnetite itabirite at 33.7% Fe. The Putu Project is subject to a resource expansion drilling programme and is moving through pre-feasibility managed by joint venture partner Severstal Resources (the mining division of London and Moscow listed OAO Severstal). In September 2010, Putu was granted a 25 year renewable Mineral Development Agreement by the Government of Liberia.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

Afferro Mining Inc.
Luis da Silva, President & CEO
Tel: +44 (0) 20 7257 2930

Evolution Securities Limited
Nominated Adviser: Jeremy Ellis / Neil Elliot
Corporate Broker: Tim Redfern / Jonathan Wynn
Tel: +44 (0) 20 7071 4300

RBC Capital Markets
Joint Broker: Martin Eales / Richard Hughes
Tel: +44 (0) 20 7653 4000

Pelham Bell Pottinger
Charles Vivian / James MacFarlane
Tel: +44 (0) 20 7861 3232