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Afriore Limited (AFO)

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Friday 12 January, 2007

Afriore Limited

3rd Quarter Results


Attention Business/Financial Editors:
AfriOre reports financial results for the three and nine months ended November
30, 2006

    ROAD TOWN, TORTOLA, British Virgin Islands, Jan. 12 /CNW/ - AfriOre
Limited ("AfriOre" or "the Company") (TSX/AIM:AFO), the minerals exploration
company, reported a profit/(loss) for the three month period ended November
30, 2006 of $774,515 or $0.02 per share - basic and diluted (2005: ($869,749)
or ($0.02) per share - basic and diluted), and a loss for the nine month
period ended November 30, 2006 of $5,348,106 or $0.11 per share - basic and
diluted (2005: $2,459,947 or $0.07 per share - basic and diluted).
    Capitalized exploration costs amount to $18,496,230, with exploration
costs for the nine months period totaling $7,712,973, including $7,298,630 for
the Akanani Platinum Project ("Akanani"), where there was a significant
increase in exploration expenditure, as well as a write down of $317,968 on
the Dwaalboom Gold Project, compared to $2,804,468 (Akanani $6,076,429) for
the nine month period last year, after an adjustment to exploration
expenditure due to the acquisition by Wits Basin Precious Minerals Inc. of a
35% equity interest in the FSC Gold Project in the first two quarters in 2005.
The continuing receipt of very positive results at Akanani was justification
for the attendant increase in expenditure at Akanani.
    In addition, the weakening of the South African Rand was responsible for
AfriOre having to report a foreign exchange loss of $637,101 for the nine
month period ended November 30, 2006, compared to $164,948 for the nine month
period ended November 30, 2005.
    The loss for the nine month period is also attributable to a Stock Based
Compensation expense of $3,685,000 resulting from revaluing of 2,500,000
warrants per the Black-Scholes method, which were issued in terms of an
agreement between AfriOre and the original Black Economic Empowerment
Shareholders of Akanani Mining (Pty) Limited and which became effective on the
successful conversion of the old order prospecting rights to new order
prospecting rights. This agreement entitles the holders of these warrants to
purchase one common share in the capital of AfriOre at an exercise price of
$4.00 expiring on May 31, 2008.
    As previously announced, on November 14, 2006, AfriOre entered into a
binding letter agreement with Lonmin Plc ("Lonmin"), whereby subject to
certain conditions, including the completion of a Definitive Agreement, Lonmin
would offer to acquire AfriOre by means of a cash offer to shareholders. On
December 14, 2006, AfriOre announced that it had entered into a Definitive
Agreement with Lonmin whereby Lonmin agreed to offer to acquire AfriOre by
means of a cash offer to shareholders of CDN$8.75 per AfriOre share. AfriOre's
board of directors was advised by Westwind Partners Inc., its Canadian
financial advisor, that the consideration offered by Lonmin is fair, from a
financial point of view, to the shareholders of AfriOre, subject to no
material changes occurring prior to the closing of the transaction. The board
of directors of Afriore has unanimously recommended to the shareholders of
AfriOre that they accept Lonmin's offer.
    Comparative Consolidated Interim Financial Statements for the nine month
periods ended November 30, 2006 and November 30, 2005, along with Management's
Discussion and Analysis, have been filed on SEDAR and are available at
www.sedar.com.

    AfriOre continues to concentrate on exploration on its platinum group
metals ("PGM") and gold projects and to engage in the acquisition, exploration
and development of PGM and gold projects in Africa.
    AfriOre is listed in Standard & Poor's Corporation Records SEC 12g 3-2(b)
exemption 82-4514.

For further information: on AfriOre and its projects visit the Company's
website at www.afriore.com or contact Fiona Childe, Ph.D., P.Geo., VP
Corporate Communications, Tau Capital Corp., Tel: (416) 361-9636 x 227, Email:
fchilde@taucapital.com
(AFO)