Zanaga the iron ore exploration and development company with a significant interest in the Zanaga Iron Ore Project in the Republic of Congo announce the following Mineral Resource update and recent developments at the Company and the Zanaga Project since Xstrata exercised its call option to acquire a 50% plus one share interest in Jumelles Limited in February 2011.

Highlights
1. Mineral Resource and Project Update

A. Total iron ore Mineral Resource at the Zanaga Project has grown to 4.0 billion tonnes from 3.3 billion tonnes with an increase in average grade to 33.9% Fe from 32.8% Fe, as reported in accordance with the JORC Code

B. Total of 91,155 metres drilled to date; 67,432 metres included in updated JORC statement

C. Mineral Resources derived from only 25km of the 47km orebody trend

2. Xstrata has taken management control of the Zanaga Project

3. Value Engineering Exercise underway VEE results and pre feasibility study results expected to be announced in Q3 2011

The Mineral Resource statement set out above is reported in accordance with the terms and definitions set out in the JORC Code and is reported as at January 1st 2011. As at this date, the total Mineral Resources constrained within an optimized Life of Mine pit shell, determined using a long term price of USc120/dmtu, so as to constrain the Mineral Resource to material that has reasonable prospects of eventual economic extraction, amounts to some 4.0 Bt grading 33.9% Fe, 43.6% SiO2, 0.047% P, 3.3% Al2O3, 0.11% Mn and 1.4% LOI. The table above presents the Indicated Mineral Resource, the Inferred Mineral Resource and the total Indicated plus Inferred Mineral Resource as at 01 January 2011 as estimated by SRK in March.