African Metals Corporation Enters Into a Letter of Intent to Purchase Up to a Further 33% Interest in the Luisha Project

  African Metals Corporation (the "Company") (TSX VENTURE: AFR)(FRANKFURT: OWW) is pleased to announce that the Company has entered into a letter of intent (the "LOI") with TSM Enterprise s.p.r.l. ("TSM") to acquire up to a further 33% interest in Luisha Mining Enterprise s.p.r.l. ("LME") and the Luisha Project located in the Democratic Republic of Congo ("DRC"). The Company completed its acquisition of its wholly owned subsidiary Chevalier Resources Inc. ("Chevalier") in March, 2010 thereby obtaining a 57% interest in LME and the Luisha Project owned by Chevalier.

Initially, the Company through Chevalier will purchase an additional 18% interest in LME and the Luisha Project in consideration for the issuance of common shares in the capital of the Company ("Shares") having an aggregate value of $1,500,000 to TSM. The number of Shares to be issued will be calculated using the volume weighted average price of the Shares on the two trading days immediately before and the two trading days immediately after the date of this announcement. Upon completion of this initial share purchase, the Company, through Chevalier, will have a 75% interest in LME and the Luisha Project. This transaction is subject to the approval of the TSX Venture Exchange.

Upon completion of the initial share purchase, Mr. Simeon Tshisingama, as nominee of TSM, will become a director of the Company and of LME.

The LOI also provides that the Company shall have the exclusive option (the "Option") to acquire an additional 15% interest in LME and the Luisha Project. The Option is exercisable upon the date it is announced by the Company that the Luisha Project has a defined Indicated Mineral Resource of 50,000 tonnes of contained copper metal and 5,000 tonnes of contained cobalt metal. The Company may exercise its Option and acquire the additional 15% interest in LME and the Luisha Project in consideration for the issuance of Shares having an aggregate value of $1,000,000 at the time the Option is exercised and by making a cash payment of $200,000 to TSM. The exercise by the Company of the Option will be subject to the approval of the TSX Venture Exchange. If the Option is exercised, the Company, through Chevalier, will have a 90% interest in LME and the Luisha Project.

In conjunction with the exercise of Option, the Company will undertake to make milestone payments to TSM as follows: (i) upon a defined Indicated Mineral Resource of 100,000 tonnes of contained copper metals and 10,000 tonnes of contained cobalt metal on the Luisha Project, the Company will issue Shares having an aggregate value of $2,000,000 and make a cash payment of $500,000; (ii) upon a defined Indicated Mineral Resource of 150,000 tonnes of contained copper metals and 15,000 tonnes of contained cobalt metal on the Luisha Project, the Company will issue Shares having an aggregate value of $1,000,000 and make a cash payment of $250,000; and (iii) upon a defined Indicated Mineral Resource of 200,000 tonnes of contained copper metals and 20,000 tonnes of contained cobalt metal on the Luisha Project, the Company will issue Shares having an aggregate value of $1,000,000 and make a cash payment of $250,000.

Apart from regulatory approval, these transactions will also be subject to certain conditions including the execution of a definitive agreement to replace the LOI.

Nigel Ferguson, President and CEO of the Company commented, "We are very pleased to have secured the extra equity percentage in this exciting project. Recent results from the project have indicated excellent copper and cobalt grades exist within the project's historical open pit at Luisha South. The extra equity will afford shareholders significant additional exposure to the upside potential of the project. In addition we have secured the services of our joint venture partner, Mr. Simeon Tshisangama, whose wealth of operational experience and contact base in the Democratic Republic of Congo will be invaluable to the success of the Company in delineating significant resources and bringing those resources to fruition."

The Luisha Project is located 75 kilometres northwest of Lubumbashi, the capital of Katanga Province and consists of approximately 16.2km(2). It includes a small historical open pit mine and associated waste rock pile and is underlain by Roan Group sediments which host major Cu-Co deposits in the Central African Copper Belt of Zambia and the DRC. The Luisha South ore body was explored by geophysical methods, drilling and some shafts and tunnels between 1923 and 1928 and an oxide deposit with an estimated pre-production tonnage of approximately 350,000 tonnes at 8.6% Cu was delineated (refer NI43-101 compliant Technical Report on the Luisha Copper-Cobalt Project by Strathcona Mineral Services Limited) The Luisha Project also covers some three kilometres of the Roan Group strike length which is favorable for hosting Cu-Co mineralization.

ON BEHALF OF THE BOARD OF DIRECTORS OF AFRICAN METALS CORPORATION

Nigel Ferguson, President & CEO

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our industry, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

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

Contacts: African Metals Corporation Sheryl Jones CFO 604-507-2181 604-507-2187 (FAX) [e-mail] www.africanmetals.com