Afferro Mining Inc. - Afferro Confirms Tax Settlement with the Government of Liberia

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TORONTO, Dec. 13, 2012 /CNW/ - Afferro Mining Inc. ("Afferro", TSX-V & AIM: AFF) is pleased to announce the signing of a compromise and settlement agreement (the "Settlement Agreement") amongst, inter alia, Afferro, the Republic of Liberia and Lybica Holding B.V. ("Lybica") in relation to certain outstanding tax claims made by the Republic of Liberia in connection with the sale of Afferro's 38.5 per cent minority interest in Severstal Liberia Iron Ore Ltd. ("SLIO") to Lybica, an affiliate of Severstal (the "Transaction").

The Settlement Agreement provides that the parties have agreed that a single payment of $9,750,000 (the "Settlement Payment") be made to the Republic of Liberia as full and final settlement for and release from all tax claims relating to the Transaction. The Settlement Payment will be transferred within five business days from funds previously escrowed by Afferro, as disclosed on 4 April 2012, and shown as a provision in the Company's filed quarterly financial statements dated 29 November 2012.

Afferro's CEO, Luis da Silva, commented:

"The Company believes this settlement is in the best interests of all parties concerned - its shareholders, the future of the development of the Putu project and the Republic of Liberia. It also releases the former joint venture partners of claims on future related payments."

About Afferro Mining Inc.

Afferro is an established exploration and development company listed on the TSX-V (AFF) and AIM (AFF).  Afferro's portfolio includes the 100% owned Nkout, Ntem and Akonolinga iron ore projects.  It also holds a 70% interest in the Ngoa project, an exploration target bordering Nkout.  Nkout comprises a National Instrument 43-101 ("NI 43-101") compliant Indicated Mineral Resource Estimate of 1.19Bt at 32.9% Fe and an Inferred Mineral Resource Estimate of 1.33Bt at 30.3% Fe.

Qualified Person

Howard Baker (MAusIMM(CP)) has 18 years' experiences in the mining industry and 10 years' experience in the exploration, definition and mining of iron ore mineral resources.  Mr Baker is a full-time employee of SRK Consulting (UK) Ltd., an independent consultancy, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Qualified Person in accordance with NI 43-101 and a Competent Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies.  Howard Baker consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

Forward-looking Statements

This announcement includes certain forward-looking statements. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various known and unknown risks and uncertainties as well as other factors. Such forward looking statements are subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including delays in obtaining or failure to obtain required regulatory approvals. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Information about the risks and uncertainties of the Company's business is provided in its disclosure materials, including its Annual Information Form and its MD&A for the 12 months ended 31 December 2011, available under the Company's profile on SEDAR at www.sedar.com.  Factors that could cause actual results or events to differ materially from current expectations include but are not limited to:  exploration risks, the grade and recovery of ore which is mined varying from estimates; estimates of future production, mine development costs, timing of commencement of operations; changes in exchange rates; access to capital; fluctuations in commodity prices; and adverse political and economic developments in the countries in which we or our investments operate.  Although the Company has attempted to identify important factors that could cause actions, events or results to differ materially from those described in forward looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein, speaks only as of the date hereof (unless stated otherwise) and, except as may be required by applicable law, Afferro disclaims any obligation to update or modify such forward-looking statements, either as a result of new information, future events or for any other reason.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.

SOURCE Afferro Mining Inc.