Afferro Mining Inc. - Grant of Stock Options

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TSX-V: AFF
AIM: AFF

LONDON, UK, July 23, 2012 /CNW/ - Afferro Mining Inc. ("Afferro" or the "Company") the TSX-V / AIM listed iron ore exploration and development company, announces that, pursuant to the terms of the Company's Stock Option Plan, the Company has granted Ousmane Kane, a Non-Executive Director of the Company, 100,000 incentive stock options ("Options") at an exercise price of C$0.76 per share, being equal to the closing price of the Common Shares on 20 July 2012 on the TSX-V, exercisable immediately and for a period of 5 years from 23 July 2012. No consideration was paid for the Options. Mr Kane now holds a total of 100,000 Options in the Company.

About Afferro Mining Inc.

Afferro is an established exploration and development company listed on the TSX-V (AFF) and AIM (AFF). Afferro's portfolio includes the 100% owned Nkout, Ntem and Akonolinga iron ore projects. It also holds a 70% interest in the Ngoa project, an exploration target bordering Nkout. Nkout comprises an NI 43-101 compliant Indicated Mineral Resource Estimate of 1.19Bt at 32.9% Fe and an Inferred mineral resource estimate of 1.33Bt at 30.3% Fe plus an NI 43-101 compliant preliminary economic assessment. Afferro currently has a cash position of approximately $48m, plus a deferred cash consideration of at least $50m resulting from the divestment of its interest in Severstal Liberia Iron Ore Ltd, leaving it well placed for medium-term funding of all its projects.

Qualified Person

Howard Baker (MAusIMM(CP)) has 18 years' experience in the mining industry and 10 years' experience in the exploration, definition and mining of iron ore mineral resources. Mr 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 mineralisation 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 NI 43-101 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.

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.

SOURCE Afferro Mining Inc.