Exxaro Resources Limited and Exxaro Australia Iron Investments Pty Ltd have announced a significant update to the terms and conditions of Exxaro’s offer for all of the shares and listed options in African Iron Limited (the Company). Specifically, Exxaro announced that:

THE OFFER PRICE IS FINAL (in the absence of a competing offer)

THE OFFER IS FREED FROM ALL CONDITIONS OTHER THAN 50% MINIMUM ACCEPTANCE

THERE WILL BE NO EXTENSION OF THE OFFER CLOSING DATE -FEBRUARY 14th 2012 (unless a competing offer is announced or Exxaro obtains acceptances of greater than 50%)

Dr Ian Burston the company’s independent, non executive chairman said that “having regard to Exxaro’s updated offer terms and conditions, in the absence of a superior proposal, your directors strongly encourage you to ACCEPT the Offers before the Offers close.”

In addition he added that “It is important that shareholders and optionholders ensure that their acceptance forms are posted well ahead of the closing date to enable them to be received and processed by 14 February 2012.”