Afferro Mining Inc : Grant of Stock Options to Directors and Employees

12 January 2012

TSX-V: AFF

AIM: AFF

AFFERRO MINING INC.

Grant of Stock Options to Directors and Employees

The Board of Afferro Mining Inc. ("Afferro" or the "Company") announces that, pursuant to its Stock Option Plan, it has granted incentive stock options to certain directors and employees of the Company. The share options were granted over a total of 2,146,000 common shares, representing approximately 2.06% of the issued share capital of the Company at an exercise price of C$0.83 per share, exercisable as follows: one third immediately; one third after one year; and one third after two years. The share options issued are capable of being exercised up to 12 January 2017.

The allocation of stock options to directors was as follows:

		New Options Issued	Total Options Held	Current Share-holding	Percentage of Current Issued Share Capital
David Netherway	Chairman	250,000	1,305,123	137,928	0.13
Luis da Silva	President & CEO	400,000	1,557,500	74,826	0.07
David Evans	Director	150,000	912,500	277,722	0.27
Guy Pas	Director	150,000	793,750	6,128,413	5.89

These options were issued for nil consideration.

Afferro Mining Inc.

Luis da Silva / Jeremy Cave

Tel: [phone]

Evolution Securities Limited

Nominated Adviser: Neil Elliot / George Price

Corporate Broker: Chris Sim

Tel: [phone]

RBC Capital Markets

Joint Broker: Martin Eales / Richard Hughes

Tel: [phone]

Pelham Bell Pottinger

Nick Lambert / James MacFarlane

Tel: [phone]

About Afferro Mining Inc.

Afferro Mining is an established exploration and development company listed on the TSX-V (AFF) and London's AIM (AFF). Afferro Mining's portfolio includes the Nkout iron ore project, which has an estimated Indicated Mineral Resource of 944.4 million tonnes grading 32.7% Fe, 45.6% SiO2 and 2.3% Al2O3 and 0.05% P and an Inferred Mineral Resource of 1,054 million tonnes grading 31.6% Fe, 45.2% SiO2 and 3.9% Al2O3 and 0.05% P, and surrounding iron targets in Cameroon, which is subject to a resource expansion drilling programme targeting 4Bt. Afferro Mining also has a 38.5% interest in the Putu iron ore project in Liberia (the "Putu Project"), which has an estimated Inferred Mineral Resource of 185 Mt of oxide material with a grade of 37.8% Fe, 17 Mt of haematite itabirite at 48.25% Fe, and 2,173 Mt of magnetite itabirite at 33.7% Fe. The Putu Project is subject to a resource expansion drilling programme and is moving through pre-feasibility managed by joint venture partner Severstal Resources (the mining division of London and Moscow listed OAO Severstal). In September 2010, Putu was granted a 25 year renewable Mineral Development Agreement by the Government of Liberia. As announced on 28 December 2011, Afferro has entered into a sale and purchase agreement with Lybica Holdings B.V., an affiliate of Severstal Resources to sell its 38.5% interest in Putu for a minimum total consideration of US$115 million.

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

New Options Issued

Total Options Held

Current Share-holding

Percentage of Current Issued Share Capital

David Netherway

Chairman

250,000

1,305,123

137,928

0.13

Luis da Silva

President & CEO

400,000

1,557,500

74,826

0.07

David Evans

Director

150,000

912,500

277,722

0.27

Guy Pas

Director

150,000

793,750

6,128,413

5.89