China Global Mining Resources JV receives claim

London Mining ("London Mining" or the "Company") announces that China Global Mining Resources Limited ("CGMR"), a subsidiary of the China Global Mining Resources (BVI) Limited joint venture ("JV") which is held 50:50 with Wits Basin Precious Minerals Inc ("Wits Basin"), has received a claim regarding the payment of the deferred consideration for the purchase of the Sudan processing plant.  The claim is to be determined through arbitration.  CGMR is in discussions with the sellers of the plant regarding this claim and a resolution (either by agreement of through arbitration) is expected in the next 6 months.  The Sellers have no legal or commercial recourse to London Mining or any subsidiary other than the CGMR JV with respect to this claim. The claim relates to the timing for payment of deferred consideration of RMB 120 million (US$17.48 million) payable to Mr Lu Benzhao and Ms Lu Tinglan (the "Sellers") under the terms of CGMR's acquisition of the Nanjing Sudan Mining Company Ltd ("Sudan") which completed in April 2009 whose sole asset was the Sudan processing plant.  The Sellers are seeking immediate payment of the deferred acquisition consideration.  CGMR believes the payment is only payable to the extent of available cash within the CGMR JV as stipulated by the equity transfer agreement of Sudan and therefore not payable at this time.  It is subject to the decision of the arbitrator whether such stipulation may be upheld in the process of the arbitration.  The Sellers, in addition, are seeking liquidated damages for late payment of the deferred consideration of US$33 million plus costs. CGMR intends to defend this claim to the fullest extent and is also pursuing various claims and counterclaims that it believes it has against the Sellers for their non-compliance with the acquisition terms, including a claim for US$15 million for breach of contract. Update on Operations and Funding As announced on 20 May 2010, in London Mining's Operations and Financial Review for the three months to 31 March 2010, CGMR operations were halted in May 2010 to allow for the tailings dam to be raised as a precautionary measure following heavy rains. The tailings dam work was completed in [June] 2010 and during the period of non-operation, maintenance was undertaken at the Sudan processing plant.  Subsequent to the raising of the tailings dam, mining operations have not resumed due to the enforcement of a requirement from the regulatory authorities in Anhui Province for the mining operations to be consolidated on the CGMR license, held by the Chinese subsidiary Maanshan Xiaonanshan Mining Company Limited ("XNS").  As reported in the Admission Document, the granting of the larger mining lease for the area, incorporating the neighbouring mines in addition to the original license, required consolidation either through acquisition or amalgamation.  CGMR has been investigating interim alternatives to consolidation but no agreement has yet been reached either with the neighbouring mines or with the authorities.  CGMR, led by Witts Basin, continues to undertake a fund raising process to allow for the consolidation of the license, acquisition of deep mining rights and for payment of the deferred consideration to Mr and Ms Lu.  London Mining is not the operator of the CGMR JV and has no intention of committing further material funds to the CGMR joint venture. Notes to Editors: The CGMR Joint Venture London Mining acquired a 50% interest in China Global Mining Resources (BVI) Limited ("CGMR BVI") in April 2009.  The remaining 50% interest is held by Wits Basin Precious Minerals Inc.  Also in April 2009, CGMR BVI, through its Hong Kong Subsidiary, CGMR, in turn completed its acquisition of the producing Xiaonanshan iron ore open pit mine and the Sudan concentrate processing plant through the acquisition of the two PRC companies Maanshan Xiaonanshan Mining Co. Ltd and Nanjing Sudan Mining Co. Ltd.  XNS holds a licence incorporating two further adjacent operating mines (Sanbanqaio and Guqaio) and is undertaking a programme of resource definition and mine planning to consolidate the three mines into a single operation.  CGMR signed a non-binding memorandum of understanding to acquire the neighbouring Sanbanqaio and Guqaio mines in August 2009, and has been conducting due diligence regarding such acquisition.  Completion of any such acquisition requires CGMR to raise external finance. For more information, please contact: London Mining Plc Thomas Credland, Head of Investor Relations     +44 20 7201 5000 Liberum Capital (Nominated Advisor/Broker) Clayton Bush/Ellen Francis     +44 20 3100 2000 Brunswick Group Carole Cable/ Daniel Thöle     +44 20 7404 5959 Crux Kommunikasjon AS Charlotte Knudsen+47 97 56 19 59 The Company's website can be found at About London Mining London Mining is focused on identifying, developing and operating scaleable mines to become a mid-tier supplier to the global steel industry. London Mining is developing four iron ore mines in Sierra Leone, Saudi Arabia, Greenland and China as well as a coking coal operation in Colombia. All London Mining's assets have deliverable production with potential for expansion. The Company listed on the Oslo Axess on 9 October 2007 and on AIM in London on 6 November 2009. It trades under the symbols LOND.L and LOND.NO (Reuters) and LOND LN and LOND NO (Bloomberg). [HUG#1438882] This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. All reproduction for further distribution is prohibited. Source: London Mining Plc via Thomson Reuters ONE