AfriOre Reports Year End Earnings

    AfriOre reports year end earnings

 

    TORTOLA, British Virgin Islands, May 30 /CNW/ - AfriOre Limited

(TSX/AIM: AFO), the minerals exploration company, reported a loss for the year

ended February 28, 2006 of ($3,511,934) or ($0.10) per share (basic and

diluted), as compared to earnings of $1,418,009 or $0.04 per share (basic and

diluted) for the year ended February 28, 2005.

    The loss for the year is attributable to the fact that in the past year

the company has increased expenditure significantly as a result of exploration

activity on its Akanani Platinum Project. Furthermore, as a result of the

disposal by AfriOre of its 50% interest in the Springlake Colliery and

Springlake Marketing Joint Venture in the year ended February 28, 2005,

AfriOre has elected to focus solely on precious metal exploration and no

longer has a source of revenue. Other extraordinary costs incurred during the

year were attributable to the listing on the Alternative Investment Market

("AIM") of the London Stock Exchange on July 11, 2005, as well as the   

write-down of certain exploration properties previously capitalized.

    Capitalized exploration for the year increased to $10,783,257 from

$6,132,183, with $8,384,499 being expended on AfriOre's gold and platinum

group metals ("PGM") exploration projects in Kenya, Namibia and South Africa.

The main focus being on the Akanani Platinum Project in South Africa, where

some $7,716,924 was capitalized. The increase in expenditure at the Akanani

project followed the receipt of positive results from the initial exploration

program.

    As announced on November 15, 2005, the disposal of the Banankoro Project

in Malifor US$1,500,000 to Societe en Commandite Par Actions ("Pacifico")

resulted in a recovery of $1,788,509 on the project. During the year Wits

Basin Precious Minerals Inc. elected to take a 35% equity stake in the FSC

Gold Project in South Africa and this resulted in an adjustment (recovery) of

$1,944,509 to the capitalized expenditure on this project as well as the

reversal of long-term and short-term advances previously reported.

    AfriOre continues to concentrate on its gold and PGM projects and to

engage in the acquisition, exploration and development of resource properties

in Africaand elsewhere, in particular gold and PGM projects.

    AfriOre is listed in Standard & Poor's Corporation Records SEC 12g 3-2(b)

exemption 82-4514.

 

    For further information: please contact: Fiona Childe, Tel:

(416) 361-0636, Fax: (416) 361-0330, e-mail: FChilde(at)taucapital.com

    (AFO. AFO)



END

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