Afferro Mining Inc : Receipt of Shareholder Approval for Divestment of Putu Project

31 January 2012

TSX-V: AFF

AIM: AFF

AFFERRO MINING INC.

Receipt of Shareholder Approval for Divestment of Putu Project

Afferro Mining Inc. ("Afferro" or the "Company"), a TSX-V / AIM listed exploration and development company is pleased to announce that further to its recent press releases regarding the proposed sale of its 38.5% interest in the Putu iron ore project in Liberia ("Putu") (the "Transaction") to Lybica Holding B.V. ("Lybica"), an affiliate of ZAO Severstal Resources, it has today received the requisite shareholder approval at a special meeting of the Company's shareholders (the "Meeting"). The Transaction was approved by 99.996% of the shares voted at the Meeting.

As per the definitive sale and purchase agreement dated 23 December 2011, the transaction will close by no later than 28 February 2012, although the parties to the transaction expect closing to occur prior to this date.

Luis da Silva, President and CEO of Afferro, commented:

"Today's overwhelming shareholder support for divesting Putu completes the restructuring of the Company, which is now 100% focussed on Cameroon and fully funded through to Definitive Feasibility Study ("DFS") at Nkout. This is an excellent position for the Company and its shareholders and with the significantly strengthened balance sheet, we can now accelerate and leverage on our strategically well-placed assets and be a significant participant in a new producing iron ore region."

For further information, please see the Company's web site at www.afferro-mining.com or contact one of the following:

Afferro Mining Inc.

Luis da Silva / Jeremy Cave

Tel: [phone]

Evolution Securities Limited

Nominated Adviser: Neil Elliot / George Price

Corporate Broker: Chris Sim

Tel: [phone]

RBC Europe Limited

Joint Broker: Martin Eales / Richard Hughes

Tel: [phone]

Pelham Bell Pottinger

Nick Lambert / James MacFarlane

Tel: [phone]

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 the Nkout iron ore project, which has an estimated Indicated Mineral Resource of 944.4 million tonnes grading 32.7% Fe, 45.6% SiO2 and 2.3% Al2O3 and 0.05% P and an Inferred Mineral Resource of 1,054 million tonnes grading 31.6% Fe, 45.2% SiO2 and 3.9% Al2O3 and 0.05% P, and surrounding iron targets in Cameroon. The Nkout iron ore project is subject to a resource expansion drilling programme, targeting direct shipping ore potential and addition magnetite/Itabirite banded iron formation. These comprise some of the inputs for the preliminary economic assessment, for which delivery is expected early in 2012. 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. As announced on 28 December 2011, Afferro has entered into a sale and purchase agreement with Lybica Holdings B.V., an affiliate of Severstal Resources to sell its 38.5% interest in Putu for a minimum total consideration of US$115 million.

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.

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