African Minerals Forum

I'm done here

Those smart f/////////ers cun't run a kiosk with newspaper , who gave them AML

despite having faced Ebola-related challenges, had highlighted the ability of a “well-run” company to continue to operate effectively in Sierra Leone, despite the Ebola outbreak. “In short, the failure of these companies has little or nothing to do with the emergence of Ebola in the region in our view,” it concluded

liu, really appreciate the update muchisimas gracias

Dear All, On Thursday, 27th November 2014, we activated the next stage in our Ebola protocol to level 4, requiring all non-essential workers and contractors to be demobilised from site. On Friday evening, 28th November 2014, several of our main contractors on site ceased operations, due to insufficient payment of outstanding invoices, effectively resulting in AML activating its Care and Maintenance Protocol until suitable financing can be secured. Demobilization of the workforce commenced on Saturday, 29th November 2014, commensurate with the Care and Maintenance Protocol, with on-site briefings to all staff and contractors. I would like to personally thank everyone for their efforts over the past week. We came together as an organization and moved our people and equipment safely and calmly ensuring the possibility of a fast restart. Although we cannot accurately determine when the project will operate again at this stage, all employees remain on full pay and benefits until otherwise advised. As you are aware, AML has been experiencing difficulties over the past few months with regards to the management and containment of Ebola in Sierra Leone and the down cycle in global iron ore pricing. Consequently, AML finds itself in a position where it must immediately conserve cash in order to maintain our current cash flow and viability of the company. Further to the market announcement on 20 November 2014, the Company announces that the $102m of restricted cash has yet to be released due to continued disagreements between AML and Shandong Iron and Steel Group (“SISG”). AML continues to use its best efforts to obtain SISG’s authorisation to release these funds, however, there remains no certainty of this, or of its timing. As previously announced, AML commenced a process to sell down a partial interest in its stake in the Tonkolili mine. AML is talking to several groups who have expressed strong interest, and discussions are being progressed as quickly as possible, though there is no certainty a transaction will be forthcoming. In the absence of sufficient working capital, AML has commenced a temporary controlled shut down of its operations in Sierra Leone. Without a significant injection of working capital, AML is unable to initiate the cost reduction strategies which would return the operations to cash flow positive status even at recent low iron ore prices. The business model of AML is robust even at low iron ore prices, and there is a strong belief that AML can continue to operate profitably once the cash position of the company is made certain. We hope that all employees and contractors are flexible and understanding of the situation and work with us to preserve our future by protecting all assets in Sierra Leone. Management is doing everything possible to procure the agreement of a funding solution between AML and SISG. The Company greatly appreciates the support shown by the Government of Sierra Leone, our suppliers and communities, and all our contractors during what we hope is only a temporary suspension of operations. We will keep you posted of all outcomes as they arise at your home address.

ear all, Today we have activated the next stages in AML’s Ebola protocol to level 4. This next stage of the Ebola protocol requires us to temporally demobilise Non-Essential personnel. This action will reduce the number of personnel on site and therefore reduces the potential of contact and therefore assist in the management and control of Ebola. Whilst AML is undergoing difficult times due to unpredicted falls in iron ore pricing, you may all be assured your leadership team is expending every effort and resource to facilitate a positive and sustainable outcome for a prosperous future for AML, it’s Contractors, all of the Employees and importantly the people of Sierra Leone. I wish to be very clear and extinguish the rumours of demobilisation for lack of financial abilities to pay salaries and charters. To be very clear the business has sufficient funds to continue to pay salaries to ALL site personnel as well as to continue to provide charter aircraft to move our personnel into and out of Sierra Leone. Regards, Alan Watling CEO

update 3 Update on temporary shutdown of operations on site We wish to update you on our recent communication regarding the demobilisation of staff from site in Sierra Leone. We also wish to advise you of your obligations during this period of suspension of operations. As you are aware the Company is experiencing difficult times due to the reduction in iron ore prices, and the devastating effect that the outbreak of Ebola has had on Sierra Leone. This has regrettably resulted in the activation of stage 4 of the Company’s Ebola protocol, and a temporary controlled shutdown of operations on site. Additionally we have activated a care and maintenance protocol, whilst we try to source sufficient working capital for the operation of the business. We are unable to specify the duration of the shutdown, but we will ensure that you are kept up-to-date with developments. During the shutdown, as you have been requested to stay at home on full pay, you must continue to respond to any telephone queries or email requests. Please also continue to liaise with your line manager if you have any work related queries. You must also ensure you are at all times available for work, and you are not permitted to undertake other paid work without our prior written consent. You will continue to be bound by the terms of your contract of employment. The Company will continue to pay your salary in the normal way, and you will also continue to receive your contractual benefits. We have had many queries regarding accrued R&R, unfortunately we are not in a position to state how this time will be treated, however the issue will be addressed as soon as it is practical to do so. As we will need to keep in contact with you during this period, please ensure that you notify the HR team immediately with any changes to your personal details. Thank you for your continued support, we will provide you with more information as it becomes available. Yours sincerely, Kevin Mclean COO

Update on temporary shutdown 31/12/2014 Further to my last update just before Christmas, I would just like to confirm with you that funds for the December salaries have now been transferred as planned. Unfortunately, due to the New Year’s public holiday, it may take a day or two longer than usual for funds to be posted into individual accounts. This will be the case especially for those of you who are residents of South Africa where the delay may be four or five days. Major shareholders of African Minerals are meeting again this week and continue to discuss their issues, all are working toward a resolution as soon as possible, however there are no firm outcomes to report to you at the moment. I will send out another update as soon as news comes to hand or during the course of next week in any event. Please enjoy New Year celebrations with your friends and family and I hope to see you as soon as operations resume. Yours sincerely, Kevin McLean COO

update 4

update 5 Dear All, Thank you for your continued patience and understanding. AML continues to try to resolve the future funding strategy with its major shareholders. This process has been difficult and has been taking more time than initially anticipated due to the complex nature of the challenges, namely Ebola and the ever declining Iron Ore Price. All parties are committed to resolving AML’s future as fast as possible. Unfortunately, there are still no firm outcomes to report to you at the moment. We ask that you continue to remain patient. As promised, we will update you all with any developments as they become available. Yours Sincerely, Kevin McLean COO