AfriOre Concludes Disposal of Coal Portfolio.

BRIDGETOWN, Barbados -- AfriOre Limited (TSX:AFO) is pleased to announce that it has concluded the disposal of its entire coal portfolio for gross proceeds of South African Rand 36.15 million (approximately Cdn $7.05 million). The purchaser is a South African consortium ('the consortium"), comprising Black Economic Empowerment companies Umsobomvu Coal (Pty) Limited and Motjoli Resources (Pty) Limited, led and financed by a major mining investment fund, The New Africa Mining Fund Nominees (Pty) Limited.

This disposition was previously announced in various press releases, most recently on August 3, 2004, and has been approved by the shareholders of AfriOre at the Special Meeting held on August 26, 2004.

Pursuant to the transactions, AfriOre has received R12.15 million (approximately Cdn $2.37 million). The balance of R24 million (approximately Cdn $4.68 million) will be paid in three instalments of R8 million each payable in February 2005, April 2005 and June 2005 and is secured by the assets of the Springlake colliery and the shares of Tendele Coal (Pty) Limited, which owns the Somkele and Baobab coal projects.

AfriOre believes that the transaction also supports the objectives of the South African Mining Charter and the recently implemented Mineral and Petroleum Resources Development Act, which promote the ownership and participation of historically disadvantaged South Africans in the mining industry.

The New Africa Mining Fund is confident that this transaction significantly advances the cause of Black Economic Empowerment in Mining, and that the Springlake coal assets will form a sound platform for the creation of a profitable, Black controlled coal mining company.

The proceeds of the sale will be used to settle the remaining amount of AfriOre's outstanding debenture of Cdn $1.1 million and to accelerate the development of its gold projects in Africa. In addition the company is at an advanced stage of due diligence investigation on a platinum acquisition and the funds from the sale will be used for the acquisition and advancement of this project.

As a result of the disposition of AfriOre's coal portfolio, AfriOre is now a focused precious metals company engaged in the acquisition, exploration and development of gold and platinum properties in Africa.

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. Accordingly, readers should not place undue reliance on forward-looking statements. 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.

AfriOre Limited (TSX:AFO)