ASX Release

18 June 2013

Cleveland O Capitão Concessions Gazetted

Highlights

? O Capitão exploration concessions gazetted

? Confers rights to 3 years of exploration, plus the provision for a 3 year extension

? Two gold mineralised bodies intercepted near surface after limited drilling. One area of mineralisation is high-grade

? Two small resources defined, with work underway to make one of them JORC-compliant

- mineralisation in both areas is open, presenting significant potential for extension

? Cleveland will immediately apply for two Utilisation Guides ("G.U." by its Portuguese initials) to allow mining to occur on an exploration lease

? Exploration concessions can be converted into full Mining Leases over time

? O Capitão is less than10km from the Premier plant, with road access already established

Cleveland Mining Company Ltd. (ASX: CDG) is pleased to announce, as a result of the Judicial Finding announced by the Company on May 21, that the exploration leases comprising the O Capitão Gold Project have been officially published in the name of the Cleveland Premier Joint Venture. Cleveland will immediately apply for two Utilisation Guides (G.U.), one for each concession, which would allow the Company to extract ore from O Capitão and haul it to the Premier Gold Mine for processing.
Two distinct zones of mineralisation have been defined at O Capitão, one of which hosts significantly higher grade material than that currently being mined at Premier. This new source of mineralisation will serve the Cleveland / Edifica joint venture well whilst gold recovery is limited in the period before the CIL plant is installed. The JV intends to mine a lower volume of higher-grade material from Premier using underground mining methods during this period, providing mill capacity to process ore from O Capitão.

Background

The first small-scale drilling program was performed at O Capitão, formerly known as Mina Engles, by the Serra Grande Joint Venture approximately 30 years ago. The results were extremely encouraging; however, an estimated 6,000 to 12,000 artisanal miners, known as garimpeiros, overran the site. The garimpeiros extracted between five and ten tonnes of gold by hand. Such unpermitted, artisanal mining is now banned in Brazil and high-grade mineralisation still remains outcropping in the project. Modern mining and processing methods have never been brought to the site before now.

Cleveland first explored the O Capitão project in 2010. With little time before the exploration leases expired, the Company cautiously undertook several small drilling programs, guided by mapping, sampling and a magnetics, as well as a VTEM geophysical program.
Initial results were highly promising and two distinct areas of mineralisation were identified. Although significant further potential remained in both areas, the Company chose to suspend exploration until it could ensure that the lease could be extended.
Within a short time of applying for a new lease, the Federal Government imposed a moratorium on gazetting of new concessions and mining approvals until it released the new mining code. Nearly twenty months later, Cleveland has been granted the right to continue exploration at O Capitão.
The Company will immediately apply for a Utilisation Guide to enable small scale extraction from O Capitão and haulage to Premier Mine for processing. As the project has previously been subjected to mining and no new infrastructure is required, the permitting is considered low risk.
Further drilling, engineering and metallurgical studies will also be prepared. The $10m investment facility entered into with Baycrest Capital will support further development of the site, which will be developed as a
50/50 joint venture with Edifica. Edifica will contribute 50/50 to all costs on an ongoing basis.
Additional information about the O Capitão project is available on Cleveland's website. www.clevelandmining.com.au/ocapitao.asp

- Ends -

Further Information Mr David Mendelawitz Managing Director

+61 8 6389 6000 investors@clevelandmining.com.au

About Cleveland Mining Company Ltd.

Cleveland Mining Company Ltd is an Australian-managed, ASX-listed minerals company squarely focused on developing projects into mines.
The Company's management team have a track-record for building billion-dollar projects from the ground up, providing Cleveland with the expertise to secure and build robust projects.
The Company has two project hubs in Brazil in areas with excellent mining credentials:
1) The Crixás Hub in Goiás State in central Brazil is gold-focused
2) The Amapá Hub in Amapá State in northern Brazil is iron-focused
Mining and production are underway at Cleveland's Premier Gold Mine JV in the Crixás Hub and the
Company is working on a potentially major iron ore project named Ferradura its Amapá Hub.
Cleveland has formed a strategic alliance with ASX-listed company BC Iron Ltd. (ASX: BCI) to co-acquire and co-develop new iron projects in Brazil as joint venture partners. The companies recently signed MOUs for three Brazilian iron projects.
Cleveland has a different approach to project selection with project economics driving target selection. Projects are chosen according to their likelihood of generating returns at the bottom of the economic cycle.

Forward-looking Statements

Forward-looking statements can be identified by the use of terminology such as 'intend', 'aim', 'project',
'anticipate', 'estimate', 'plan', 'believe', 'expect', 'may', 'should', 'will', 'continue' or similar words. These statements discuss future expectations concerning the results of operations or financial condition, or provide other forward looking statements. These forward looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this ASX update. Readers are cautioned not to put undue reliance on forward looking statements.

Competent Person's Statement

The information in this report that relates to Exploration Results is based on information reviewed by David Mendelawitz, who is a Fellow of the AusIMM. Mr Mendelawitz has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Mendelawitz consents to the inclusion of the matters based on his information in the form and context in which it appears. Mr Mendelawitz is employed by Cleveland Mining Company Ltd.

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