Kogi Iron Limited and KCM Mining Limited advise a positive and robust outcome for the preliminary feasibility study on its 100% owned Agbaja Iron Ore Project, in Kogi State, Federal Republic of Nigera. Operating costs are estimated at $43/dmt FOB and capital intensity at $99/dmt, this places both the projected operating costs and the projected capital costs for Agbaja in the bottom half and bottom quartile respectively for global magnetite projects and comparable to some DSO hematite iron ore projects. This is due to the softness of the Agbaja material and the resultant moderate grinding intensity and simple processing plant design, the low strip ratio (0.55:1), gas fired power and river barging for concentrate transport.

The definitive feasibility study is expected to be completed by end of fourth quarter of 2014.