AfriOre Announces Plans to Dispose of Certain Interests in its Coal Assets.

BRIDGETOWN, Barbados -- AfriOre Limited (TSX:AFO) is pleased to announce that it has reached an agreement on the principal terms to dispose of its interest in the Springlake Joint Venture, to an arm's length purchaser for gross proceeds to the Company of South African Rand 21,150,000 (approx. Cdn$4,500,000). The Company's interest in the Springlake Joint Venture is held through TWF Holdings (Barbados) Limited, in which the Company and CIBC Capital Partners Cayman No. 2 Limited (a subsidiary of the merchant banking division of Canadian Imperial Bank of Commerce) each hold a 50% interest. Prior to the closing of the disposition, the Company and CIBC will each also receive a cash distribution from the Springlake Joint Venture.

The Company is also pleased to announce that it has reached an agreement in principle in which the same purchaser will earn a 50% interest in its Somkele Coal Project. The agreement in principle contemplates that the Company will receive a cash payment of South African Rand 7,000,000 (approx. Cdn$1,490,000) from this transaction.

The Company will be asking shareholders to approve the above transactions at a special meeting of shareholders scheduled to take place on or about August 26, 2004. The dispositions are also subject to the approval of the Toronto Stock Exchange.

The proceeds from the dispositions will be used by the Company to develop its gold projects and expand its precious metals portfolio.

AfriOre is listed in Standard & Poor's Corporation Records SEC 12g 3-2(b) exemption 82-4514.

This document may contain or refer to forward looking information based on current expectations. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. These forward-looking statements are made as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.