As you would be aware, on 11 January 2012, Exxaro Resources Limited and African Iron jointly announced an off market, cash takeover offer by Exxaro for all of the shares and listed options in African Iron.

The Exxaro takeover offer has been recommended by the African Iron Board, in the absence of a superior proposal. I can now advise you that on January 19th 2012 each African Iron director accepted the Exxaro offer for all of the African Iron shares and listed options that they owned or controlled.

In summary the Exxaro offer is:
Share Offer: Exxaro is offering AUD 0.51 cash for each African Iron share, and Exxaro will increase the offer price to AUD 0.57 cash per share if it acquires a relevant interest in 75% or more of all of the African Iron shares (on a fully diluted basis).

Option Offer: Exxaro is offering AUD 0.31 cash for each African Iron listed option, and Exxaro will increase the offer price to AUD 0.37 cash per listed option if it acquires a relevant interest in 75% or more of all of the African Iron shares (on a fully diluted basis).

The Exxaro offer will remain open until 5.00PM Perth time on February 14th 2012 (unless extended).