AfriOre Limited

AfriOre Limited

May 24, 2005 10:08 ET

AfriOre Limited: Update On Afriore Gold Projects

BRIDGETOWN, BARBADOS--(CCNMatthews - May 24, 2005) -

FSC Project, South Africa: Drilling Resumes in Witwatersrand Quartzites

Dwaalboom Project, South Africa: Prospecting Rights Granted

Masumbi Project, Kenya: Diamond Drilling Starts on Wide Zone of Gold Mineralization

AfriOre Limited (TSX:AFO) ("AfriOre") is pleased to report that it has overcome temporary drilling problems in drill hole BH48 at its South African FSC Witwatersrand gold project and that prospecting rights have been granted to Dwaalboom Minerals Company (Pty) Limited ("Dwaalboom"), the joint venture company incorporated by AfriOre and its joint venture partner for the Dwaalboom gold project in South Africa. In addition, follow-up diamond drilling has commenced on its recently discovered Masumbi gold project in Kenya.

FSC Project, South Africa

AfriOre has resolved the problems caused by localized sidewall collapse in drill hole BH48 (refer to AfriOre press releases dated April 5 and April 20, 2005 respectively), by successfully deflecting from the original hole and inserting a steel sleeve from 1,776 to 1,947 metres, to stabilize the problematic zone. Consequently, drilling has been resumed and is currently at a depth of 1,980 metres, within the same Witwatersrand Supergroup quartzites drilled in the original intersection. AfriOre and its joint venture partner, Wits Basin Precious Minerals Inc. will continue drilling through the quartzites with the aim of intersecting any mineralized conglomerates which may be developed within the sedimentary succession.

Dwaalboom Project, South Africa

At Dwaalboom, prospecting rights have been awarded over a total area of 31,621 hectares, comprising the original project area of 5,270 hectares plus an additional area of 26,351 hectares in an expanded area of interest.

The Dwaalboom project has some 700,000 ounces of gold in 20.1 million tons of mineralization at an average grade of approximately 1.1g/t in a near surface, shallow dipping (5 degrees) zone up to 21 metres thick. This mineralization was delineated by Anglo American Corporation of South Africa ("Anglo American"), who drilled 616 reverse circulation percussion and 19 diamond drill holes into mineralized vein stockworks hosted by Transvaal Supergroup dolomites. These calculations were reported internally by Anglo American, prior to implementation of the NI43-101 code, and therefore do not meet its requirements. Anglo American further reported an average grade of 1.89g/t gold from a 25,000 tonne trial mining operation within the mineralized zone.

The gold mineralization in the project area was discovered and explored by Anglo American in the 1990s. The mineral rights were subsequently acquired by black empowerment company, African Pioneer Mining (Pty) Limited ("African Pioneer"), who entered into a joint venture with a subsidiary of AfriOre in 2002, in terms of which AfriOre may earn a 51% interest in the project and have the right to acquire a further 19%, thereby giving AfriOre the right to own up to a 70% interest in Dwaalboom (see AfriOre press release dated September 9, 2002).

The issuance of prospecting rights entitles AfriOre, as appointed manager, to commence field exploration activities on the project and detailed planning and preparation for field work has commenced. The proposed program aims to verify the Anglo American drilling results and to explore for extensions to the mineralization.

Masumbi Project, Kenya

AfriOre has commenced diamond drilling on its recently discovered Masumbi gold project, which lies within the Company's Ndori special prospecting licence area in southwestern Kenya. During 2004, AfriOre carried out follow-up exploration on several regional gold-in-soil geochemical anomalies within an area which is underlain by Nyanzian metavolcanics and Kavirondian metasediments and intruded by younger granodiorites. Detailed soil geochemical surveys indicate a large gold anomaly in soils at Masumbi over a strike length and width of some 1,500 and 500 metres respectively. Sixty-seven open hole percussion holes were drilled along 7 "fences" of angled holes to a maximum depth of approximately 50 metres, over a strike length of some 750 metres and a maximum horizontal distance of some 300 metres. This drilling discovered an extensive, previously unknown 300 metre wide system of mineralized quartz veins, interpreted to occur within a steeply dipping shear zone over a strike of at least 750 metres. The drilling indicates localized zones of higher grade gold mineralization within the larger, lower grade system, which will be drilled to a depth of some 100m in the current diamond drilling program, in order to improve sampling of the mineralization. Drilling advance is anticipated to be slow in order to secure good quality samples in the weathered ground and initial assay results are expected in July.

In view of the positive results to date on the regional gold geochemical anomaly at Masumbi, other regional, lower order geochemical anomalies on the Ndori project area are being reviewed. This work, together with basic prospecting, will continue during the current drilling program.

AfriOre has an option agreement to acquire 100% interest in the Ndori area and holds the rights directly in respect of the Siaya area, also for a 100% interest.

Capricorn Project, Namibia

The Company has completed the collection of approximately 2,500 soil samples on regional sampling lines and on 7 grids over geophysical anomalies on its Capricorn gold project in northern Namibia, and has submitted these to an ISO accredited laboratory for low level gold analysis. Results are expected to be available shortly. It is anticipated that any gold-in-soil geochemical anomalies that may be present will assist in prioritizing the existing geophysical anomalies for follow-up drilling.

AfriOre has continued to consolidate its land position in the project area by application for exclusive prospecting rights over an additional, contiguous area of 30,490 hectares.

Banankoro Project, Mali

Drilling progressed during 2004 at the Bagama high grade gold prospect at Banankoro, and most drill holes continued to intersect the mineralized zone. In all, some 20 diamond drill holes have intersected the main mineralized structure. Notwithstanding this success and the fact that there are still high priority targets to be prospected and drilled at Banankoro, management has reviewed the results and ranked Banankoro relative to the prospectivity of, and high levels of expenditure demanded by other projects in the Company's portfolio. Consequently, the Company and its joint venture partner have entered into discussion and expressions of interest have been received for AfriOre's rights in this project.

AfriOre's President and CEO, Mike van Aswegen, is the qualified person overseeing the exploration program.

About AfriOre

AfriOre is engaged in the search for, and acquisition, exploration and development of gold and platinum exploration properties in Africa. It currently has gold exploration properties in South Africa, Mali, Namibia and Kenya and rights to the Akanani platinum group metal properties in South Africa.

The company has 34,966,549 shares outstanding; 39,221,914 fully diluted shares and cash and receivables of approx. CDN $6.5 million

AfriOre is listed in Standard & Poor's Corporation Records SEC 12g 3-2(b) exemption 82-4514.

This document may contain or refer to forward looking information based on current expectations. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. These forward-looking statements are made as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.

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