Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African investments, is pleased to announce that Lonrho Mining Ltd (formerly known as Nare Diamonds), which is owned 24.16% by Lonrho, has made the following announcement to the Australian Securities Exchange this morning:

HIGHLIGHTS

• Angolan Government approves kimberlite diamond exploration and mining joint venture, paving the way for kimberlite operations to start at world class Lulo project

• Independent geophysical consultant has identified 217 magnetic anomalies, of which an estimated 160 are likely to be kimberlite pipes

• Drilling program to start this year on the 6 largest kimberlite anomalies

• Bulk sampling program to commence on alluvials, with initial diamond recoveries expected this year

Australian-based diamond exploration and development company Lonrho Mining Limited (ASX: LOM) ("Lonrho Mining" or the "Company") today announced it has received government approval to commence exploration of the kimberlite targets at the Lulo Diamond Concession in Angola (Figure 1).

The Company has now received all the necessary approvals to commence exploration and development of the alluvial and kimberlite deposits at Lulo.

The Lulo Project is located on the eastern margin of the Cuango River catchment approximately 650km east of Luanda within the Lunda Norte Province of northeastern Angola.   Many experts believe this area will become a prolific region for the production of diamonds.   The Catoca Mine, one of the largest kimberlite diamond mines in the world, produces 60% of Angola's diamond production and is located 90km east of the Lulo Diamond Concession. The Catoca mine produced approximately 7 million carats in 2007.

The Cuango River alluvial diamond fields are the largest in Angola.   The operators of these concessions are amongst the leading diamond miners in the world, including De Beers, Trans Hex and Alrosa. The largest alluvial diamond mine in Angola is Chitotolo in the Lunda Norte province, which produces approximately 150,000 carats per annum.

This development follows the recently completed aeromagnetic and radiometric survey which resulted in the identification of an extensive cluster of at least 217 magnetic anomalies.   Based on regional comparisons, it is estimated that 160 of these anomalies are likely to be kimberlites (Figures 2, 3 & 4).

Lonrho Mining's consultant geologist Manfred Marx said:

"To date, the results from the Lulo survey are the most encouraging that I have witnessed since the discovery of the Orapa Mine in Botswana in 1967."

Commenting on the approvals, Lonrho Mining's Chief Executive Officer Charles Mostert said:

"This is a significant milestone for the Company and its shareholders as we now have full government approvals to commence the exploration and development of this exciting project.   We believe Lulo is a world class project capable of delivering significant value to our shareholders and our Angolan joint venture partners in the short to medium term."  

NOTES TO EDITORS

About Lulo

The Lulo Project is located on the eastern margin of the Cuango River catchment approximately 650km east of Luanda within the Lunda Norte Province of northeastern Angola.

The Company has signed Joint Venture Agreements with Endiama, the national diamond company of Angola and exclusive concessionary for Angolan diamond mining rights, to develop the highly prospective 3,000km² Lulo Diamond Concession in Angola.

On all kimberlite deposits Lonrho's participating interest will initially be 39% of the joint venture which will decrease to 30% after recoupment of its investment in the Project. On all alluvial deposits Lonrho's participating interest will be 40% in the joint venture.   Under the terms of the joint venture agreement with Endiama, Lonrho has paid a cash deposit of US$1.4 million (A$1.54 million) which is refundable after exploration expenditure of an equal amount by Lonrho within nine months after signing the joint venture agreement. Lonrho is also required to fund a work programme for which the first year of exploration expenditure will total US$6 million (A$7 million).   Under the terms of the joint venture, the Company will also receive in priority the funds it has expended on exploration from future cash flow from mining operations.

For more information please visit: www.lonrhomining.com

About LONRHO:

Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa.   The Company's shares are traded on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services, hotels and natural resources. The Company has over 19,000 shareholders and substantial institutional backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy.

Since 2006, the Company has invested in or acquired control of:

Hotel Cardoso - www.hotelcardoso.co.mz   (retained)

Lonrho Mining - www.lonrhomining.com

Luba Freeport - www.lubafreeport.com

Fly540 - www.fly540.com

Swissta Holdings - www.swissta.com

SA Independent Liner Services – www.saliners.com

Bytes and Pieces www.bytespieces.com

Kwikbuild – www.e-kwikbuild.co.za

LonZim – www.lonzim.co.uk